Looking Ahead to the 2026 Q1 Earnings Season

Core Insights - The overall corporate profitability is strong and improving, particularly in the Tech sector, which is expected to drive earnings growth in 2026 Q1 [4][6][9] Earnings Growth Expectations - Total S&P 500 earnings for 2026 Q1 are projected to increase by +11.3% year-over-year, with revenues expected to rise by +8.4% [4][7] - The Tech sector is anticipated to show significant earnings growth of +23.7%, contributing substantially to the overall S&P 500 earnings growth [4][6][7] - Excluding the Tech sector, the earnings growth for the rest of the S&P 500 would only be +5% [4][7] Sector Performance - Ten Zacks sectors are expected to experience positive earnings growth in 2026 Q1, including Finance (+19%), Basic Materials (+14.6%), Autos (+12.9%), and Business Services (+7.3%) [4] - The Tech sector has been a critical growth driver since Q3 2023 and is expected to maintain this role in 2026 Q1 [6][7] Revisions Trend - The revisions trend for the Tech sector remains positive, contributing to the overall positive revisions trend for the S&P 500 [9][16] - The Tech sector is one of four sectors with increased earnings estimates since October 2025, alongside Finance, Industrial Products, and Business Services [9]