US results preview: big upgrades for tech and finance stocks
Wall Street is expecting good news when American companies begin publishing their latest quarterly results this week. Graeme Evans runs through the predictions.
7th October 2025 15:37
by Graeme Evans from interactive investor
A branch of Chase Bank, part ofJPMorgan Chase, in Hudson Square, New York City. Photo: Gary Hershorn/Getty Images.
Earnings revisions have raised the bar for Apple Inc (NASDAQ:AAPL), NVIDIA Corp (NASDAQ:NVDA) and JPMorgan Chase & Co (NYSE:JPM) as they head into a results season that will provide a big test for the record-breaking S&P 500 index.
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According to FactSet, Wall Street now expects an earnings growth rate of 8% for the third quarter. That compares with an estimate of 7.3% at the start of the quarter on 1 July and would represent the ninth quarter in a row of year-on-year growth.
Information technology has seen the largest percentage increase in earnings per share (EPS) estimates out of all 11 sectors, moving from a growth forecast of 15.9% to 20.9% today.
More than 80% of the sector’s 68 companies have seen an increase in their mean EPS estimate, with the most significant contributions from Nvidia, Apple, Microsoft Corp (NASDAQ:MSFT) and Micron Technology Inc (NASDAQ:MU).
FactSet adds that the financial sector has recorded the second-largest improvement, with a year-on-year growth rate now seen at 11.5% compared with 7.6% at the start. Beneficiaries include JPMorgan Chase, which is seen posting $4.78 per share on Tuesday 14 October.
Communications services ranks third, fuelled by upgrades for Meta Platforms Inc Class A (NASDAQ:META) and Alphabet Inc Class A (NASDAQ:GOOGL).
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The financial data and software group said it was the first time since the final quarter of 2021 that analysts have increased their EPS forecasts for the S&P 500 index.
In a typical quarter, analysts usually reduce earnings estimates as the average decline in the past five years or 20 quarters has been 1.4%.
Fears of a recessionary trade war have faded during the quarter, while the outlook for further Federal Reserve interest rate cuts have been another factor in Wall Street optimism.
The S&P 500 index last week set a record, despite the furloughing of half a million federal workers due to the first US government shutdown since 2018.
Having risen by more than 8% in the quarter, FactSet said the forward 12-month price/earnings (PE) ratio for the S&P 500 now stood at 22.8 times.
This compares with the five-year average of 19.9 and the 10-year average of 18.6. It is also above the forward 12-month P/E ratio of 22.1 at the end of the second quarter.
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IT and consumer discretionary have the highest multiples at near to 30, while energy has the lowest at 15.1.
The earnings season kicks off on Thursday when Delta Air Lines Inc (NYSE:DAL) and PepsiCo Inc (NASDAQ:PEP) report figures before the opening bell.
Momentum picks up on Tuesday 14th with the results of banking giants JPMorgan Chase, Citigroup Inc (NYSE:C) and Wells Fargo & Co (NYSE:WFC) before Bank of America Corp (NYSE:BAC) and Morgan Stanley (NYSE:MS) the following day.
Tesla Inc (NASDAQ:TSLA) figures are due after the closing bell on Wednesday 22 October, while Nvidia investors have a long wait until 19 November. More details can be found on our earnings calendar, which is updated every Friday.
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