Goldman Sachs(US:GS) Ge Long Hui A P P·2025-08-18 10:58Core Insights - The S&P 500 companies have significantly exceeded earnings expectations in the current earnings season, primarily due to their ability to mitigate tariff impacts and benefit from a weaker dollar [1] Group 1: Earnings Performance - S&P 500 companies reported a year-over-year earnings per share growth of 11%, which is substantially higher than the market consensus expectation of 4% [1] - This quarter has seen one of the highest frequencies of earnings exceeding expectations in history, according to Goldman Sachs' Chief U.S. Equity Strategist David Kostin [1] Group 2: Factors Influencing Performance - Companies have managed to maintain better-than-expected profit margins in the face of tariffs by negotiating with suppliers, adjusting supply chains, cutting costs, and passing price increases onto consumers [1] - Analysts had previously lowered earnings expectations significantly due to Trump's tariffs, creating a lower baseline that made it easier for companies to surpass expectations [1] - A weaker dollar has also contributed to accelerated sales growth in the second quarter [1]