Coming off a new all-time closing high for the S&P 500 last Friday, it is the third-busiest week of first-quarter earnings season, with 94 S&P 500 companies scheduled to report. Importantly, one of the Magnificent Seven, Tesla Inc. (TSLA), is scheduled to release earnings. Beyond Tesla, notable companies scheduled to report include Boeing Co. (BA), ServiceNow Inc. (NOW), American Express Co. (AXP), 3M Co. (MMM), Chubb Ltd. (CB), and Gilead Sciences Inc. (GILD).
Earnings Season At A Glance
According to FactSet, 88% of S&P 500 companies are reporting earnings above consensus estimates, with 10% of companies having released results.
Earnings Estimates Show Steady Momentum
Companies reporting and combining actual results with consensus estimates for companies yet to report, the S&P 500’s blended earnings growth rate for the quarter is 13.1% year over year, below the 13.2% expectations at the end of the quarter. Notably, the expected earnings growth rate for calendar year 2026 is 18.0%, while the estimated growth for 2027 is 16.4%.
Market Performance Reflects Geopolitical Shifts
The S&P 500 rose sharply last week amid hopes of an end to the Iran conflict. The Magnificent 7 — Microsoft Corp. (MSFT), Meta Platforms Inc. (META), Amazon.com Inc. (AMZN), Apple Inc. (AAPL), Nvidia Corp. (NVDA), Alphabet Inc. (GOOGL), and Tesla — soared by 8.5%. Small-cap stocks outperformed the S&P 500, while energy stocks fell.
Polymarket odds of a U.S. recession in 2026 remained unchanged at 24%, well below the highest levels reached during the armed conflict with Iran.
Why The Magnificent Seven Still Drive The Story
Because technology companies are critical drivers of earnings growth and account for a significant percentage of the S&P 500’s market capitalization, the Magnificent Seven remains the group to watch this earnings season.
One of the Magnificent Seven is scheduled to report results this week: Tesla on Wednesday after market close.
Sector-Level Earnings Insights
Better-than-expected earnings reports within the financial and communication services sectors were partially offset by downward revisions in the energy sector.
Positive earnings reports from JPMorgan Chase & Co. (JPM), Citigroup Inc. (C), Bank of America Corp. (BAC), and Morgan Stanley (MS) were the largest contributors to improved earnings for the week.
Revenue Trends Highlight Financial Strength
Better-than-expected sales growth in the financial sector was the largest contributor to expected revenue growth, with expectations now above the end-of-quarter level, according to FactSet.
What Investors Are Watching This Week
The status of hostilities with Iran and oil prices will remain a focus for financial markets this week. The peace negotiation situation remains uncertain. While betting odds on the end of U.S. military operations by the end of June remain high at 84%, they can drop when the risk of re-escalation rises.
Earnings will share the stage with geopolitics as the main event for the week. With the first busy week of earnings beginning, including Tesla, investors will start to get a better sense of the broad strength of earnings growth. Further, given the Iran conflict and high oil prices, management’s forward earnings guidance will be closely watched.
Disclosure: Glenview Trust may hold stocks mentioned in this article within its recommended investment strategies.
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