This week’s EPS estimate for Q1 ’26 jumped 11.7% in one week, thanks to the mega-cap tech earnings. Q1 ’27 declined as sell-side analysts now expect a much tougher comp in Q1 ’27 thanks to Q1 ’26 expected results.
The energy sector EPS estimate as of May 1, ’26 has understandably rocketed higher, at +46.1%, and is now equal to the tech sector’s +46.2%.
The S&P 500 earnings yield (SP EY) has now slipped to 4.75%. Anything below 4.5% looks expensive.
As of mid-March ’26, net income for Q1 2’6 was estimated to be around $600 billion, but after 314 S&P 500 companies have reported, the estimate is now $680 billion, or a 13% increase. The difference between this number and the actual S&P 500 EPS growth for Q1 ’26 is probably "explained" by share repurchases.
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The above chart from LSEG’s “This Week in Earnings” shows the progression in both sector and S&P 500 EPS growth since Jan 1, ’26.
The energy sector EPS estimate as of May 1, ’26 has understandably
