With more than 90% of S&P 500 companies having reported their third-quarter results, the earnings season is shaping up to be one of the strongest in recent years. Major companies still set to report this week include Nvidia, Walmart, Target, Lowe’s, and Home Depot, adding further weight to the final stretch of the season.
According to FactSet, here is how Q3 earnings are trending:
Earnings Beats Are Surging
More than 80% of S&P 500 firms have delivered earnings per share (EPS) that exceeded analyst expectations.
This is well above the 10-year average of about 75%, placing this quarter on track for the highest rate of positive EPS surprises since 2021.
Revenue Growth Also Exceeding Forecasts
Over 75% of companies have reported stronger-than-expected revenue, surpassing the decade-long average of roughly 66%.
This suggests that corporate performance is strong not only on the profit side but also in underlying demand.
Profit Margins Hit Historic Highs
Despite ongoing concerns about costs, tariffs, and supply-chain pressures, S&P 500 companies are reporting their highest net profit margins in at least 15 years—based on FactSet data going back to 2009.
Tariff Concerns Decline
Discussions around tariffs have declined notably:
- The term “tariff” or “tariffs” has appeared on 238 earnings calls so far.
- That’s down significantly from 357 mentions in the second quarter.
This suggests companies are less concerned—at least for now—about potential trade-related cost pressures.