With more than half of S&P 500 companies having reported Q4 earnings, around three quarters have beaten forecasts. This is according to FactSet Research, which monitors US and global earnings data.
| Period | % of earnings beats | Average earnings beat |
| Q4 to date | 76% | 7.6% |
| 5-year average | 78% | 7.7% |
| 10-year average | 76% | 7.0% |
Source: FactSet Research, data correct as of 6 February 2026
Double-digit earnings growth
So far, 59% of companies in the index have reported, with 76% beating estimates, in line with historic averages. The average beat is 7.6%, which again is in line with history for the index as a whole.
Most of the beats since the start of February have been in Communication Services, Financials and Health Care. Meanwhile, the biggest contributors to earnings growth since the start of January are in the Communications, Industrial and IT sectors.
As more companies report, the average earnings growth rate has increased to 13% for Q4. If earnings maintain the same pace, it will mark five consecutive quarters of double-digit annual growth for the index.
In terms of revenue, 73% of S&P 500 companies have beaten forecasts, above the 5-year and 10-year averages. In aggregate, the average beat so far is just 1.4% which is below the 5-year average but in line on a 10-year view.
Weaker dollar helping
FactSet also calculates that S&P 500 companies with more international exposure are reporting higher revenue and earnings growth. This is due in no small part to the weakness of the US dollar in the fourth quarter.
| Revenue Growth | Earnings Growth | |
| S&P 500 average Q4 to date | 8.8% | 13.0% |
| > 50% international sales | 11.9% | 17.7% |
| > 50% domestic US sales | 7.7% | 10.0% |
Source: FactSet Research, data correct as of 6 February 2026
For S&P 500 companies with more international exposure, Nvidia (NVDA) is the top contributor to both earnings and revenue growth. In fact, excluding Nvidia, revenue and earnings growth would drop from 11.9% and 17.7% to 9.9% and 12%, respectively.
For Q1 2026, analysts are pencilling in earnings growth of 11.3% followed by 14.9% growth in Q2. For FY26, earnings are expected to rise by 14% compared with 2025.
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