Q3 Earnings Season Setup Remains Favorable: What to Know

Core Insights - The Q3 earnings season is set to begin with nearly 80 companies reporting, including 35 S&P 500 members, with major banks leading the reports [1][9][12] - A positive trend in earnings estimate revisions has been observed since the start of Q3, contrasting with the previous two quarters [2][5] - For Q3 2025, earnings are expected to grow by +5.7% year-over-year, with revenues increasing by +6.1% [3][10] Earnings Estimates and Sector Performance - Q3 estimates have increased for 6 out of 16 Zacks sectors, notably in Tech, Finance, and Energy, while 10 sectors faced downward pressure, particularly Basic Materials and Consumer Staples [4][5] - The Finance sector is projected to see a +12.7% increase in earnings year-over-year, with revenues up by +6% [10] Key Company Reports - JPMorgan is expected to report earnings of $4.83 per share on revenues of $44.86 billion, reflecting year-over-year increases of +10.5% and +5.2% respectively [6][7] - Bank of America anticipates earnings of $0.94 per share on $27.1 billion in revenues, with year-over-year changes of +16.1% and +7% [8][12] Early Earnings Results - So far, 23 S&P 500 members have reported Q3 results, showing a +9.1% increase in earnings and +6.4% in revenues, with 78.3% beating EPS estimates [14][18]