3 Sector ETFs to Play on Solid Q4 Earnings Trends

Core Insights - The Q4 earnings season has commenced, with major banks like Bank of America, Wells Fargo, Goldman Sachs, and Citigroup expected to report earnings this week, reflecting strengthened corporate earnings expectations over recent quarters [1] Earnings Projections - Total S&P 500 earnings for Q4 2025 are projected to increase by 7.9% year over year, supported by an 8.2% rise in revenues, marking the 10th consecutive quarter of positive earnings growth for the index [2] - The Technology sector is anticipated to be the primary earnings driver, with overall Q4 earnings growth slowing to 3.8% if Tech is excluded [3] Future Outlook - In 2026, the Technology sector is expected to contribute nearly half of the total S&P 500 earnings growth, with all 16 Zacks sectors projected to achieve positive earnings growth for the first time since 2018 [4] - The "Mag 7" group, including Microsoft, Alphabet, Meta, Apple, Tesla, Nvidia, and Amazon, is expected to see total earnings increase by 16.5% on 15% higher revenues in 2026, following a projected 21.7% earnings growth in 2025 [5] Sector Performance - The Aerospace sector is projected to see total earnings rise by 62.3% year over year, driven by a 12.0% increase in revenues, bolstered by President Trump's proposed $500 billion defense spending [7] - The Technology Select Sector SPDR ETF (XLK) is expected to see total earnings grow by 15.4% in Q4 on 16.3% higher revenues, following a strong Q3 performance [9] - The Finance sector is projected to experience earnings growth of 11.9% in Q4 on 9.4% higher revenues, with continued growth expected in 2026 [11]