Second-quarter 2026 earnings at major U.S. companies showed substantial increases in revenue and EPS, and there is reportedly room for their strong earnings to be priced into stock prices. HII, XYZ and AME are cited as examples.
Second-quarter 2026 earnings at major U.S. companies have been released for the most part, showing strong growth, with revenue up 14.99% year on year and EPS up 52.12%. Revenue and EPS both generally delivered positive surprises versus market expectations, while the EPS surprise was significantly higher than in the previous quarter.
The average stock price return for the constituent stocks after their earnings announcements was +0.03%, below the previous quarter's +0.81%. Since stock prices are determined by the combination of EPS and P/E ratios, the strong earnings are considered to have room to be priced into stock prices.
The stock list includes Huntington Ingalls Industries, Block and AMETEK. All three met the specified criteria of recording a positive EPS surprise in their most recent earnings and seeing consensus EPS estimates for the most recent four weeks revised upward by at least 2%.
HII raised its revenue and margin outlook against a backdrop of rising shipbuilding demand, with growth expected based on the status of order wins. Block is being valued for growth in gross payment volume, upward earnings revisions and faster product delivery through the use of AI, while the decline in the value of its bitcoin holdings is a concern. AME is expected to continue expanding its earnings through measurement equipment for the semiconductor and energy industries, and is expanding supplies to the aerospace, medical and manufacturing sectors.
Market volatility could rise in response to news related to the U.S. midterm elections, but the list includes companies expected to see earnings recover or improve on the back of strong earnings and company-specific factors. A PDF list is provided as related material.