Analysts forecast the S&P 500’s year-over-year earnings growth to hit 23.3% in Q2, above historical averages, driven by strong sector performance.
The S&P 500 is projected to report a 23.3% year-over-year earnings growth for the second quarter, exceeding the five-year average of 16.4% and the 10-year average of 10.3%. This marks the second consecutive quarter of over 20% growth and the seventh straight quarter of double-digit gains for the index.
Earnings estimates have climbed steadily, reflecting improved economic activity, particularly in Europe’s resilient manufacturing sector. Ten of the 11 S&P 500 sectors are expected to post earnings growth, with Energy, Technology, and Materials leading the gains.
Capital expenditures from hyperscalers like Amazon have fueled demand for hardware, memory chips, and data center infrastructure, supporting corporate fundamentals despite inflation and geopolitical risks.