Second-quarter earnings season has largely exceeded expectations. According to FactSet as of July 31, with 61% of S&P 500 Index (SPX) companies having reported results, 86% have topped earnings-per-share estimates while 77% have beaten revenue expectations. The blended earnings growth rate for the index now stands at 47.4% year over year, putting the S&P 500 on pace for its strongest quarter of earnings growth since the second quarter of 2021.
Earnings expectations have improved dramatically throughout reporting season as well. At the end of June, analysts expected S&P 500 earnings to grow 23.2% year over year, but stronger-than-expected results and upward estimate revisions have pushed that figure significantly higher.
Looking ahead, corporate guidance has also leaned constructive, with 34 S&P 500 companies issuing positive third-quarter EPS guidance, compared to 20 issuing negative guidance. Against this backdrop, several stocks have delivered standout post-earnings moves -- both higher and lower -- as investors continue to reward strong outlooks while punishing disappointing forecasts.
Summing It Up
Using the last few weekly recaps from Schaeffer's 5-Minute Market Rundown, here is a summary of notable earnings reports so far this season:
The season began with financials setting a positive tone, with Goldman Sachs (GS) stock climbing to record highs after a blowout report. Shares of UnitedHealth Group (UNH) and Johnson & Johnson (JNJ) also posted better-than-expected results. Not every earnings winner was rewarded, however. Netflix (NFLX) stock fell sharply despite topping expectations, as investors instead focused on the streaming giant's forward outlook.
As reporting broadened, earnings season delivered sharp moves across a variety of sectors. Domino's Pizza (DPZ) stock extended its rally after a revenue beat, while shares of 3M (MMM) surged on strong quarterly results. On the downside, Cal-Maine Foods (CALM) stock tumbled after posting a surprise quarterly loss. Semiconductor earnings also remained in focus, with Taiwan Semiconductor (TSM) stock slipping despite record results as capital expenditure concerns weighed on sentiment, while shares of Intel (INTC) brushed off the chipmaker's strongest revenue growth in 15 years.
The market's largest technology companies generated some of the season's biggest earnings reactions. Microsoft (MSFT) stock logged its best single-session gain since October 2008 after topping earnings and revenue estimates, while Amazon.com (AMZN) stock rallied on stronger-than-expected results and continued optimism surrounding AI spending. Meanwhile, shares of Alphabet (GOOGL), Tesla (TSLA), and Apple (AAPL) came under pressure as investors scrutinized AI spending, capital expenditure plans, and services revenue despite generally solid quarterly results.
Earnings momentum has remained strong into the latest week of reporting. Shares of Eli Lilly (LLY) rallied after the pharmaceutical giant delivered a beat-and-raise quarter driven by continued GLP-1 demand, while Shopify (SHOP) stock soared following blowout second-quarter results. ON Semiconductor (ON) stock also jumped after posting an AI-driven earnings beat and upbeat outlook.
Elsewhere, shares of Walt Disney (DIS) climbed after the entertainment giant topped quarterly expectations, as investors continue to watch whether the strong pace of earnings beats can carry through the remainder of reporting season. Zillow Group (ZG) and Trade Desk (TTD) both fell sharply after their reports, however, as analysts slammed them with bear notes.
