The financial reports for the fourth quarter of 2025 published so far by American companies show that 76 percent of them exceeded analysts' expectations in terms of earnings per share, and 73 percent companies exceeded the consensus in terms of revenue, FactSet reported.
Overall 59 percent companies from the S&P 500 index have so far published actual (not estimated) results for the fourth quarter of 2025.
FactSet data shows that 76 percent of them reported earnings per share (EPS) above analyst estimates, which is below the 5-year average of 78% but equal to the 10-year average of 76%.
In total, the companies report profits of 7.6%. above estimates, which is between the 5-year average of 7.7 percent. and the 10-year average of 7.0 percent. Historical averages reflect the actual performance of all 500 companies, not the performance of the percentage of companies that have reported to that point.
Last week, companies from many sectors reported positive earnings per share (EPS) surprises (led by communications services, healthcare and finance).
As a result, the index reports higher fourth-quarter earnings today compared to the end of last week and compared to the end of the quarter. The combined (combining actual results of companies that have reported and estimated results of companies that have not yet done so) earnings growth rate for the fourth quarter is 13.0% today, compared to an earnings growth rate of 11.9%. in the previous week and a profit growth rate of 8.3%. at the end of the fourth quarter (December 31).
If the actual growth rate for this quarter is 13.0%, it will be the fifth consecutive quarter of double-digit year-over-year earnings growth for the index.
Nine of the eleven sectors show year-on-year growth, led by information technology, industrials and communications services. On the other hand, two sectors are seeing year-over-year profit declines: consumer goods and healthcare.
73 percent S&P 500 companies reported actual revenues that exceeded estimates, an increase of 70%. compared to the 5-year average and 66 percent compared to the 10-year average.
In total, the companies record revenues by 1.4%. higher than estimates, which is lower than the 5-year average of 2% but equal to the 10-year average of 1.4%.
This past week saw positive earnings surprises from companies across a wide range of sectors, including information technology, communications services, healthcare and industrials.
As a result, the fourth quarter's total revenue growth rate is now 8.8%, compared to a revenue growth rate of 8.2%. last week and a revenue growth rate of 7.8%. at the end of the fourth quarter (December 31).
If the actual revenue growth rate for this quarter is 8.8%, it will mark the highest revenue growth recorded by the index since Q3 2022 (11.0%). This will also be the 21st consecutive quarter of growth in index revenues.
Ten sectors report year-on-year revenue growth, led by information technology, communications services and healthcare. On the other hand, the energy sector is the only sector that has seen a year-on-year decline in revenues.
FactSet data shows that analysts forecast an increase in profits in the first and second quarters of 2026 by 11.3%, respectively. and 14.9 percent For calendar year 2026, analysts forecast earnings growth (year-on-year) by 14.1%.
The forward 12-month P/E ratio is 21.5, which is higher than the 5-year (20.0) and 10-year (18.8) averages. However, it is lower than the forecast P/E ratio, which was 22.0 at the end of the fourth quarter (December 31).
In the coming week, 78 companies included in the S&P 500 index (including 3 companies included in the Dow 30 index) are scheduled to publish their fourth quarter results. (PAP Business)
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