In just the last week, the blended earnings growth rate of S&P 500 earnings has leapt from 15% to 27%. All the increase has come from positive EPS surprises from three companies: Alphabet (GOOG), Amazon (AMZN) and Meta Platforms (META). According to FactSet, these three ‘Mag 7’ companies alone accounted for a whopping 71% of the increase in Q1 earnings. All three posted above-average earnings surprises, led by Alphabet’s 90% ‘beat’ with EPS of $5.11 against the consensus of $2.68. On average, Alphabet has beaten quarterly earnings forecasts by around 12% over the last five years. Close behind Alphabet is…

Shares in global bank HSBC (HSBA) lost 5.3% after its Q1 earnings undershot market expectations. As predicted in our look ahead, the miss was due to higher costs and provisions for the worsening global economic outlook. Worsening outlook HSBC’s Q1 pre-tax profit of $9.4 billion was below the consensus of $9.6 billion and Q1 2025’s $9.5 billion. The decrease reflected higher expected credit losses and other credit impairment charges together with a rise in operating expenses. Provisions for expected credit losses were $1.3 billion against $400 million last year. The main item was a charge for $400 million of ‘fraud-related’…

Lender NatWest (NWG) posted Q1 results which narrowly beat the consensus across the board and raised its FY guidance. However, the shares, which had already lost 10% this year, dropped a further 3.7% to 564p. Positive Q1 performance For Q1, the bank posted total income of £4.4 billion, flat on Q4 2025 but slightly ahead of estimates. Net interest income undershot forecasts, but fees and other income were ahead, accounting for the top line beat. Operating costs of £2 billion were well below forecasts thanks to additional savings of £100 million during the quarter. The cost-to-income ratio fell 2.1% to…

Investors breathed a sigh of relief after housebuilder Persimmon (PSN) confirmed its targets for profits and completions this year. However, the firm did point to rising inflation in its supply chain, led by higher energy costs, which it said could affect H2 earnings. No material impact, yet Persimmon said the volume of net private sales per outlet per week had increased by 3% in the first four months of 2026. By value, private forward sales so far this year were up 7% from £1.68 billion to £1.8 billion thanks to higher selling prices. CEO Dean Finch said the Middle East…

Shares in hospitality group Whitbread (WTB) fell to a five-year low after its business review failed to resonate with the market. The firm aims to ‘refocus’ its capital spend and ‘recycle’ more of its freehold estate to raise margins and cash. More focused approach In light of significant cost increases, including business rates and NI, the board has come up with a five-year plan. The aim is to increase profits and reduce capex, raising its return on capital employed and generating £2 billion of free cash flow. First, it will focus capex on the highest-return opportunities to increase pre-tax profit…

Aero engine and defence group Rolls-Royce (RR.) issued a positive AGM statement confirming its FY26 financial targets. The firm assured investors it would ‘fully mitigate’ the current financial impact of the Middle East disruption on its business. Strong start to FY26 Rolls-Royce said it had a ‘strong start to the year across all three divisions’. In Civil Aerospace, widebody demand remains strong and it has a young fleet which is growing faster than the market. Large EFH (engine flying hours) grew 5% to 115% of 2019 levels in Q1, and for FY26 should remain at 115%-120% of 2019 levels. The…

Shares in ingredients group Treatt (TET) soared 45% after the board recommended a takeover offer from German rival Döhler. The offer, at 305p per share, values Treatt at £183 million and represents a 48% premium to yesterday’s closing price. Stronger together Treatt specialises in producing high-quality flavours and fragrances for the beverage industry using natural fruit extracts and synthetic sources. Well known for its expertise with citrus flavours, the firm has moved into areas such as sugar reduction and tea. Döhler’s offer represents a premium of 17% to Natara’s initial offer last September and 5% to its final offer last…

Shares in Lloyds (LLOY) drifted lower in early trade despite the banking group posting better-than-expected Q1 profits. Lloyds also lifted its FY26 net interest income guidance while confirming its capital generation and solvency targets. Small beat across the board Net interest income for Q1 was £3.6 billion, up 8% on Q1 2025 and marginally above the consensus of £3.55 billion. For the full year, LLoyds now sees net interest income surpassing £14.9 billion. Operating costs of £2.5 billion were down 2% on last year and marginally below analysts’ forecasts of £2.55 billion. Also, underlying impairment charges were £295 million against…

FTSE 250 builders’ merchant Travis Perkins (TPK) issued a disappointing Q1 trading update, missing market expectations. Shares in the Northampton-based group dropped 5% to a new 12-month low of 518p. Volumes remain weak For the three months to March, the group posted a 3.1% drop in revenue with organic revenue down 1.7%. The balance of the decline was due to changes in the number of stores over the last 12 months. Breaking down the like-for-like figure, volumes were down 2.8% while the firm managed to raise prices by 1.1%. Toolstation UK, which accounts for around 15% of sales, was the…

Shares in Taylor Wimpey (TW.) hit their lowest level in over a decade after the firm’s latest trading update. The stock dropped 5% to 79p, taking year-to-date losses to 26% and marking its lowest level since 2013. Margin squeeze In a statement ahead of its AGM, the company revealed its order book at 26 April was down on FY25. It also warned selling prices were falling while input costs were rising. Overall pricing in the order book is 1% lower than last year, with prices most impacted in Southern England. This where affordability is most stretched, and where the firm…