Zacks Earnings Trends Highlights: Meta, Microsoft and Tesla

For Immediate ReleaseChicago, IL – January 29, 2026– Zacks Director of Research Sheraz Mian says, "Total earnings for the 106 S&P 500 members that have reported Q4 results are up +14.9% from the same period last year on +7.9% higher revenues."Taking Stock of Q4 Earnings SeasonNote: The following is an excerpt from this week’s Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>>Here are the key points:The picture emerging from the Q4 earnings season is one of a steadily improving earnings outlook that is starting to show up in a favorable estimates revisions trend, particularly for some of the economically sensitive sectors like Basic Materials, Autos, Construction, and others. We should note here that the revisions trend has been consistently positive for the Tech sector for the last many quarters.Total earnings for the 106 S&P 500 members that have reported Q4 results are up +14.9% from the same period last year on +7.9% higher revenues, with 76.4% beating EPS estimates and 63.2% beating revenue estimates.The Q4 earnings and revenue growth pace at this stage represent a clear acceleration from what we had seen from this group of companies in other recent periods. Positive beats are less numerous this reporting cycle, with the EPS and revenue beats percentages tracking below the 20-quarter averages for this group of index members.The Tech sector has been a key growth driver since 2023 and is on track to play that role in 2025 Q4 and beyond as well. Q4 earnings growth for the S&P 500 index drops to +5.5% from +9.2% after removing the Tech sector’s enormous contribution from the aggregate numbers. The Tech sector is currently expected to account for almost half of S&P 500 earnings growth in 2026.Q4 earnings for the ‘Magnificent 7’ group of companies, which includes the likes of Meta Platforms META, Microsoft MSFT and Tesla TSLA, are expected to be up +17.1% from the same period last year on +16.7% higher revenues. Excluding the ‘Mag 7’ contribution, Q4 earnings for the rest of the index would be up only +6.3% (vs. +9.2%).The Earnings Big PictureThe Tech sector has an outsized role in the S&P 500 index. The sector is expected to bring 36.1% of the index’s total earnings over the coming four-quarter period and currently accounts for 43.3% of the index’s total market capitalization. The Tech sector’s positive estimate revision trend is a major reason its members enjoy a strong market following and support.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comZacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.SeeWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Microsoft Corporation (MSFT): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis Report Meta Platforms, Inc. (META): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks