ZACKS·2025-09-05 23:51Core Insights - Q3 earnings for the S&P 500 are expected to grow by +5.1% year-over-year, driven by +6% higher revenues, marking the lowest growth rate since Q3 2023 [1][8] - The estimate revisions trend has been positive since late April, indicating a recovery in earnings expectations [2][8] - The Tech sector is projected to continue its strong performance, with earnings expected to rise by +11.9% on +12.4% higher revenues, significantly contributing to the overall S&P 500 earnings growth [5][8] Earnings Trends - Since July, Q3 earnings estimates have increased for 5 out of 16 Zacks sectors, particularly in Tech, Finance, and Energy, which together account for over 50% of the index's total earnings [3][5] - Conversely, 11 of the 16 Zacks sectors have faced downward pressure on estimates, with notable declines in Medical, Transportation, Basic Materials, and Consumer Staples [4][8] - The overall earnings picture for the S&P 500 indicates a gradual improvement, with Q3 estimates reflecting a positive trend compared to previous quarters [10][15] Upcoming Earnings Reports - Key earnings reports from Oracle and Adobe are anticipated to provide early insights into the Tech sector's performance for Q3 [9][17] - Market sentiment towards Oracle is positive due to its AI strategy, while Adobe faces concerns regarding potential dilution of its software leadership due to AI advancements [20]