ZACKSยท2025-09-12 23:16Core Insights - Recent fiscal quarter results from Oracle and Adobe are included in the September-quarter tally, with major banks set to report on October 14 [1] - Adobe's results exceeded estimates but did not alleviate the bearish sentiment surrounding the stock, primarily due to concerns about its ability to maintain its software niche in an AI-driven market [2] - Alphabet faces similar skepticism regarding the sustainability of its search dominance, although it has other business segments to rely on [3] Company Performance - Adobe shares have decreased by approximately one-third over the past year, underperforming the broader market and the Tech sector [3] - Oracle's quarterly results were exceptionally strong, with a backlog increase and management's outlook surpassing even the most optimistic estimates [4] - Adobe's earnings for the current fiscal year are projected to rise by 12% on a revenue increase of 9.6%, with expectations of 12.8% earnings growth and 9.2% revenue growth for the next year [5] Earnings Estimates and Trends - Q3 earnings estimates for the S&P 500 are expected to grow by 5.1% on 6% higher revenues, marking the lowest growth pace since Q3 2023 if actual results align with expectations [7][9] - The estimate revisions trend has been positive since April, with Q3 earnings growth expectations for the Tech sector projected at 12% on 12.5% higher revenues [10][15] - Despite positive trends in the Tech and Finance sectors, 11 of the 16 Zacks sectors have faced downward pressure on estimates since the start of the quarter [11][12] Sector Analysis - The Tech sector is anticipated to continue as a key growth driver, contributing significantly to overall S&P 500 earnings growth for Q3 [15] - Without the Tech sector's strong performance, total S&P 500 earnings growth would only be 2% instead of the expected 5.1% [15]