S&P 500 companies' second-quarter earnings growth reached 70%, driven by the information technology sector, where profits nearly tripled year on year, Oppenheimer Asset Management said in a report Monday.
A total of 133 companies, or 27% of the index constituents, have reported second-quarter results, with profit growth accelerating to 70% year over year from about 52% up until a week ago. Revenue growth slowed to 12.6% from 16%, according to the report.
Tech earnings soared 190% annually, followed by communications services companies, which reported 168% profit growth. Technology also had the highest annual revenue increase of 45% among 11 sectors, with financials showing a 17% jump.
Prior to the start of the second-quarter reporting season, FactSet-polled consensus estimates projected S&P 500 earnings growth of nearly 24% year over year, Oppenheimer said.
Another 169 S&P 500 companies are scheduled to report results this week, including four of the so-called Magnificent 7 companies Microsoft (MSFT), Meta Platforms (META), Apple (AAPL) and Amazon (AMZN).
ExxonMobil (XOM), Visa (V), Mastercard (MA), AbbVie (ABBV), Chevron (CVX), Coca-Cola (KO) and Procter & Gamble (PG) also report this week.
"Looking at current valuations and the current earnings season, more factors appear to be getting better than getting worse," Oppenheimer Asset Management Chief Investment Strategist John Stoltzfus said.
Oil prices slid Monday as President Donald Trump said the US and Iran were in talks. However, crude has rallied this month due to the apparent collapse of a preliminary US-Iran peace deal.
Escalated tensions between the two nations sent the 10-year Treasury yield to 4.68% last week, the highest level since January 2025, Stoltzfus said.
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