Earnings calls citing ‘AI’ surge in 2025 as ‘uncertainty’ mentions fade

Core Insights - The term "AI" has become the most frequently used term in S&P 500 earnings calls this year, indicating a strong focus among CEOs and CFOs on artificial intelligence [1] Group 1: AI Mentions in Earnings Calls - FactSet reported that "AI" was cited in 306 S&P 500 earnings calls from September 15 to December 4, marking the highest number in the past decade, surpassing the previous record of 292 in Q2 2025 [2] - The 306 mentions of "AI" are significantly above the five-year average of 136 and the ten-year average of 86 [2] - The information technology and communication services sectors had the highest percentages of earnings calls citing "AI" at 95% each for Q3 [3] Group 2: Price Performance Correlation - S&P 500 companies that mentioned "AI" in their Q3 earnings calls experienced a higher average price increase compared to those that did not, with increases of 13.9% vs. 5.7% since December 31, 2024, 8.1% vs. 3.9% since June 30, 2025, and 1.0% vs. 0.3% since September 30, 2025 [4] Group 3: Uncertainty in Earnings Calls - The term "uncertainty" was analyzed in S&P 500 earnings calls, showing a spike in mentions in Q1 2025 with 415 instances, followed by a decline to 282 in Q2 and 201 in Q3 [5] - The emergence of significant uncertainty was linked to the new administration's economic and geopolitical agenda, prompting CFOs to focus on actionable strategies to build resilience [6] - Despite the tapering off of "uncertainty" mentions, the ongoing nature of uncertainty may drive companies to revisit strategies and seize competitive opportunities [7] Group 4: Future Outlook - Global AI spending is projected to increase in 2026, suggesting that "AI" will likely remain a prominent topic in Q4 earnings calls as companies discuss investments, margins, capital expenditures, and productivity [7]