Q2 2025 Earnings Review: Performance, Market Revisions, Sentiment

Heading into Q2 2025, expectations for S&P 500 earnings were fairly cautious. Analysts projected modest growth of 6–7% for earnings and around 4% for revenue—amid concerns over slowing global demand, persistent inflationary pressures, and the drag from still-elevated interest rates. However, Q2 2025 S&P 500 earnings season has exceeded expectations, with both earnings and revenues surprising to the upside. Earnings outperformance was led by Information Technology, Communication Services, and Healthcare, supported by AI adoption, a rebound in digital advertising, and steady underlying demand. By contrast, more rate-sensitive sectors such as Real Estate and Utilities underperformed, pressured by elevated financing costs and softer fundamentals. It was no surprise that these strong results led to positive surprises, however, revisions to full calendar year earnings were more mixed. A more cautious tone also emerged in earnings calls, where the use of positive language declined significantly compared to the previous quarter and fell below the long-term average—signaling a more measured outlook from corporate leadership.

Earnings Performance 

Surprises and Revisions

Executive Sentiment