Q4 2025 Earnings in Focus: Performance Trends, Market Revisions and Sentiment Shifts

The S&P 500 has been hovering near all-time highs to start 2026, largely seeking a clearer sense of direction. While this analysis uses data mostly released prior to the current Iran Conflict — which has been exerting notable effects on world financial markets — it will be important to see how the latest round of earnings might shape the performance of the S&P 500 once the effects of this conflict recede.

Thus far, we've seen continued strong performance at the index level with 74% of stocks beating expectations. As has been the case for several quarters, AI-related momentum has been the driver for the Information Technology sector. IT has stood out not only for its positive earnings surprises but also for early upward revisions following earnings releases.

Earnings call sentiment remained relatively high during the quarter. Interestingly, the Energy sector saw the largest sentiment increase compared to the prior period—particularly notable given that most of these calls occurred before the start of the Iran conflict.