U.S. Earnings Season Gains Momentum as Profit Growth Outlook Improves

From an editorial perspective, the significance lies in how quickly expectations have shifted during the current U.S. earnings season. With reporting now well past the halfway mark, markets are being forced to reassess both profit growth assumptions and sector-level risks.

The U.S. earnings season for the fourth quarter of 2025 remains in full swing, with approximately 58% of companies in the S&P 500 having already reported results.

Among those companies, 76% have exceeded earnings-per-share expectations. This figure is slightly below the five-year average of 78% but in line with the ten-year average of 76%. Revenue performance, however, has been notably stronger: 73% of companies have beaten sales estimates, exceeding both the five-year average of 70% and the ten-year average of 66%.

The past week was marked by heightened volatility in the technology sector, driven by earnings releases and management commentary from some of the largest companies. Shares of Alphabet and Amazon came under pressure as investors weighed concerns over the scale of their capital investment programmes and the potential impact on future profitability.

Against this backdrop, Qualcomm shares declined after issuing a weaker-than-expected outlook, despite delivering solid quarterly results. In contrast, Arm Holdings outperformed the broader market, benefiting from relatively more favourable guidance and investor positioning.

Looking ahead, the coming week features a broad cross-section of earnings reports across multiple sectors. In technology, investors will focus on results from Shopify and Cisco. Consumer and internet-related names including Spotify, McDonald's and Airbnb are also set to report.

In healthcare and biotechnology, Moderna and Vertex Pharmaceuticals are among the notable names on the reporting calendar. Meanwhile, in the industrial and materials space, market participants will be watching earnings from Cameco and Agnico Eagle.

Several stocks are expected to remain particularly volatile around earnings releases, including Nebius and Unity Software, which may attract increased attention from short-term traders.

According to FactSet data, the forecast for year-over-year earnings growth of S&P 500 companies in the fourth quarter has been revised higher to 14.0%, compared with 8.1% at the start of the quarter. As historical cycles often show, such revisions can play a key role in shaping broader equity market sentiment in the weeks ahead.

Key Earnings Calendar for the Week Ahead