The fourth quarter earnings season is well underway, with more than half of S&P 500 companies having reported their results. According to FactSet data, Wall Street analysts are estimating a 13% increase in earnings per share for the fourth quarter. This would mark the 10th consecutive quarter of annual earnings growth for the index and the fifth consecutive quarter of double-digit growth.
Heading into the reporting period, analysts were expecting an 8.3% jump in earnings per share, lower than the third quarter’s 13.6% earnings growth rate. However, Wall Street has raised its earnings expectations in recent months, especially for tech companies, which have been driving earnings growth in recent quarters.
Big Tech companies continue to make significant capital expenditures, setting the tone for the AI trade. Themes that drove the markets in 2025, such as artificial intelligence, the Trump administration’s tariff and economic policies, and a K-shaped consumer economy, are still relevant and providing plenty for investors to analyze.
This week, investors will be closely watching earnings reports from companies like Coca-Cola, Spotify, Robinhood, Lyft, Ford, Rivian, Moderna, Airbnb, and Coinbase. These reports will provide insights into the performance of these companies and their outlook for the future.
In recent news, Birkenstock missed quarterly revenue estimates, leading to a 3% drop in premarket trading. Baxter’s stock also sank 14% after forecasting annual profit below estimates due to hurricane-related issues. On the other hand, Restaurant Brands reported Q4 adjusted earnings and revenue that beat estimates.
In the tech sector, AppLovin beat quarterly revenue estimates, while Magnum Ice Cream’s stock fell 12% after reporting a decline in sales for the fourth quarter. Equinix’s stock jumped more than 9% in extended trading after issuing strong annual revenue guidance driven by AI data center demand. Cisco’s stock, however, fell 5% after issuing guidance below Wall Street forecasts.
Overall, the earnings season is showing mixed results across different sectors, reflecting the diverse challenges and opportunities facing companies in the current economic environment. Investors will continue to closely monitor earnings reports and market developments for insights into future trends and investment opportunities.
