American companies show profits of 12.3% in the first quarter. above forecasts

After a quarter of the season of publication of first quarter results by American companies, the S&P 500 index records an increase in profits by a total of 12.3%. above analysts' forecasts – according to FactSet data. Companies from this index record double-digit (year-on-year) profit growth for the sixth quarter in a row.

According to FactSet, a total of 28 percent S&P 500 companies have so far reported actual results for the first quarter of 2026. Of these companies, 84 percent reported actual EPS above estimates, which is above the 5-year average of 78%. and above the 10-year average of 76 percent.

In total, companies report profits of 12.3 percent. above estimates, which is above the 5-year average of 7.3 percent. and above the 10-year average of 7.1 percent. The historical averages reflect the actual performance of all 500 companies, not the actual performance of the percentage of companies that reported to that point.

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The earnings growth rate for the first quarter is currently 15.1%. If the actual growth rate for the quarter is actually 15.1%, it will be the sixth consecutive quarter of double-digit (year-over-year) earnings growth for the index.

Eight of the eleven sectors report year-on-year profit growth, led by information technology, resources, financials and industrials. Meanwhile, three sectors are seeing year-on-year profit declines, led by energy and healthcare.

In terms of revenues, 81 percent S&P 500 companies reported actual revenues above estimates, which is above the 5-year average of 70%. and above the 10-year average 67 percent.

Overall, companies are reporting revenues up 2.0%, according to FactSet data. above estimates, which corresponds to the 5-year average of 2.0 percent, but exceeds the 10-year average of 1.5 percent. The historical averages reflect the actual performance of all 500 companies, not the actual performance of the percentage of companies that have reported to that point.

As a result, the revenue growth rate for the first quarter is today 10.3%. If the actual revenue growth rate for the quarter is 10.3%, it will be the highest revenue growth rate recorded by the index since the third quarter of 2022, when it was 11%.

According to FactSet forecasts, all eleven sectors report annual revenue growth, led by information technology, communications services and finance.

For the second, third and fourth quarters of 2026, analysts forecast earnings growth rates of 20.6, 22.7 and 20.4 percent, respectively. For the entire year 2026, analysts forecast profit growth (year-on-year) at 18.6%.

The 12-month P/E ratio is 20.9, which is above the 5-year average (19.9) and above the 10-year average (18.9). It is also higher than the P/E ratio of 19.7 recorded at the end of the first quarter (March 31).

In the coming week, 180 S&P 500 companies (including 11 Dow 30 companies) are scheduled to report first-quarter results. (PAP Business)

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