Zacks Earnings Trends Highlights: Target, Home Depot and Amazon

For Immediate Release

Chicago, IL – November 20, 2025 – Zacks Director of Research Sheraz Mian says, "Total earnings for the Retail companies already reported are up +18.5% on +8.4% higher revenues, with 69.6% beating EPS estimates and 82.6% beating revenue estimates."

Q3 Earnings Season: Retail Sector in Focus

Note: The following is an excerpt from this week’s Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>>

Here are the key points:

• For the 466 S&P 500 members that have reported Q3 results, total earnings are up +14.0% from the same period last year on +7.9% higher revenues, with 83.0% beating EPS estimates and 75.3% beating revenue estimates. The proportion of these 466 index members beating both EPS and revenue estimates is 65.9%.
• The Q3 earnings and revenue growth pace for these 466 index members represents an acceleration relative to what we have seen from this same group of companies in recent quarters. The proportion of these 466 index members beating EPS and revenue estimates is tracking significantly above the historical averages for this same group of companies.
• For the Retail sector, we now have Q3 results from 76.7% of sector companies in the S&P 500 index. Total earnings for these companies are up +18.5% on +8.4% higher revenues, with 69.6% beating EPS estimates and 82.6% beating revenue estimates.
• Looking at 2025 Q3 as a whole, combining the actual results from the 466 index members that have reported with estimates for the still-to-come companies, total S&P 500 index earnings are expected to be up +14.8% from the same period last year on +8.1% higher revenues.

The Retail Sector – S&P 500 vs. S&P 600

We have a dedicated sector classification for the Retail sector instead of clubbing these companies in the Consumer Discretionary and Consumer Staples sectors. We believe that the stand-alone Zacks Retail sector enables a more nuanced, granular understanding of the space.

For reference, Zacks has 16 ‘economic’ sectors, including the Retail sector, which compares to 11 such sectors in the ‘official’ S&P classification system. In addition to the Retail sector, we also have dedicated sectors for Automobile, Construction, Aerospace/Defense, Transportation, and Business Services.

Please note that the Zacks Retail sector includes not only conventional brick-and-mortar operators like Target TGT and Home Depot HD, but also restaurant and ecommerce players like Amazon AMZN.

For the Retail sector in the S&P 500 index, we now have Q3 results from 23 of the 30 companies, or 76.7% of all the retailers in the large-cap index. For the small-cap S&P 600 index, we now have Q3 results from 23 of the 33 retailers, or 69.7% of the retailers in the index.

Total Q3 earnings for the Retail sector companies in the S&P 500 index that have reported are up +18.5% from the same period last year on +8.4% higher revenues, with 69.6% beating EPS estimates and 82.6% beating revenue estimates.

Amazon’s Q3 earnings were up +29.3% from the same period last year on +11.9% higher revenues, though admittedly, the bulk of the e-commerce giant’s impressive growth pace is thanks largely to its cloud computing business.

A couple of trends stand out in the Retail sector’s Q3 earnings season performance thus far. First, the group’s top-line performance is solid, both in terms of growth rates and beat percentages. Second, margins remain under pressure, though the pressure appears to be less severe than in other recent periods.

For the S&P 600 index, total earnings for the 69.7% of the sector’s members that have already reported are up +17.9% from the same period last year, on +6.1% higher revenues, with 60.9% beating EPS estimates and 69.6% beating revenue estimates.

The Earnings Big Picture

Looking at Q3 as a whole, combining the actual results that have come out with estimates for the still-to-come companies, total earnings are on track to +14.8% on +8.1% revenue gains. We have consistently shown in this space how Q3 estimates have steadily increased since the quarter began.

The revisions trend turned negative in recent days after staying positive earlier through the Q3 reporting cycle. We are seeing this with estimates for the current period, with Q4 estimates modestly down since the quarter got underway in October.

Free: Instant Access to Zacks' Market-Crushing Strategies

Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.

Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.

Get all the details here >>

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

[email protected]

https://www.zacks.com

Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research