NDR: All eyes on earnings season

Strong earnings growth has helped offset macro headwinds this year, including higher oil prices, elevated bond yields, and renewed Fed tightening, and investors will look to Q3 results to see if that support can continue.  

While earnings growth is expected to remain historically strong, attention is increasingly shifting toward 2027 guidance, where the key question is not whether earnings will grow, but how much growth will decelerate. The backdrop for profits remains the most favorable in four years, but investors tend to reward earnings acceleration more than growth alone.

After an exceptional Q2 reporting season, when 85.5% of S&P 500 companies beat analyst estimates (chart above) and beat rates for mid- and small-cap stocks reached multi-year highs, companies may face a higher bar as earnings season begins in earnest with results from several major banks. One-time factors helped make Q2 particularly strong, raising questions about how repeatable that performance will be in the quarters ahead.  Download the full publication by completing the form to the right.

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