This week, the peak of the U.S. earnings season, announcements are concentrated in the week from 26 to 30 October. The focus is on earnings from 3 of the Magnificent Seven: Alphabet, Microsoft and Amazon. Results from these and other major companies, together with market expectations, are expected to influence the outlook for earnings growth this quarter and market movements.
Third-quarter earnings from U.S. companies are scheduled to be announced in concentrated fashion this week, with 179 S&P 500 constituents expected to report during the period. In particular, Alphabet (Google's parent company), Microsoft and Amazon are due to report, followed by companies including Boeing, Coca-Cola and Starbucks.
According to FactSet, a provider of market data, approximately 24% of S&P 500 companies had reported earnings at the time of writing, and 83% of those had posted profits above market expectations. As a result, earnings growth this quarter is expected to be approximately 29.5% year on year. On a calendar-year basis, growth is expected to be approximately 33.1% in 2026 and 16.0% in 2027.
During the earnings season, semiconductor stocks and the major Magnificent Seven stocks, including META and Alphabet, collectively fell 0.5% in the week from 19 to 23 October. By contrast, an equal-weighted view of S&P 500 stocks, regardless of market capitalization, showed a smaller decline than 0.5%.
Against this backdrop, earnings announcements from Alphabet, Microsoft and Amazon are considered likely to influence future market movements and sector trends. The combination of future corporate earnings and market reactions will determine the credibility of the quarterly earnings growth outlook.