So far, profits of 74 percent. American companies that have already presented their results for the fourth quarter of 2025 have exceeded analysts' expectations – according to FactSet data. In the case of revenues, this percentage is 73%.
At this late stage of the fourth-quarter earnings season, S&P 500 companies are reporting solid results, FactSet finds.
While the percentage of S&P 500 companies reporting positive earnings surprises is lower than recent averages, the magnitude of these surprises is in line with averages.
As a result, the index today reports earnings for the fourth quarter at a level similar to the end of last week, but higher than at the end of the quarter. The S&P 500 Index is now reporting double-digit (year-over-year) earnings growth for the fifth consecutive quarter.
In total, 74 percent companies from the S&P 500 index have so far published actual (not estimated) results for the fourth quarter of 2025. 74 percent of these companies reported actual earnings per share (EPS) above estimates, which is below the 5-year average of 78%. and lower than the 10-year average of 76 percent.
In total, the companies report profits of 7.2%. higher than estimates, which is between the 5-year average of 7.7 percent. and the 10-year average of 7.0 percent.
Since December 31, positive earnings per share (EPS) surprises have been reported by companies from the industrial, IT, communications services and financial sectors.
As a result, the index today reports fourth-quarter earnings at the level at the end of last week, but higher than at 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 today 13.2%.compared to a profit growth rate of 13.2%. last 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 13.2%, it will be the fifth consecutive quarter of double-digit year-over-year earnings growth for the index.
Nine out of eleven sectors show year-on-year growth, leading the way with the information technology, industry and communication services sectors. On the other hand, two sectors are seeing year-on-year profit declines: consumer goods and energy.
In terms of revenues, 73 percent S&P 500 companies reported actual revenues that exceeded estimates, which is above the 5-year average of 70%. and a 10-year average of 66 percent.
In total, the companies record revenues by 1.6%. higher than estimates, which is lower than the 5-year average of 2.0% but higher than the 10-year average of 1.4%.
Since December 31, positive revenue surprises have been reported most strongly by companies in the information technology, healthcare, communications services and industrials sectors.
As a result the fourth quarter's total revenue growth rate is now 9.0 percent.compared to a revenue growth rate of 8.8%. 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 9.0%, 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 growthled by the information technology, communications services and healthcare sectors. On the other hand, the energy sector is the only sector that has seen a year-on-year decline in revenues.
Analysts forecast an increase in profits in the first and second quarters of 2026 by 11.1%, respectively. and 14.9 percent For calendar year 2026, analysts forecast earnings growth (year-on-year) by 14.4%.
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, 57 companies included in the S&P 500 index (including one company included in the Dow 30 index) are scheduled to publish their fourth quarter results. (PAP Business)
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