Catenaa, Wednesday, October 22, 2025– US companies are on track to beat the highest quarterly earnings recorded in more than four years, providing investors with relief amidst uncertainty.
About 85% of S&P 500 firms that have reported third-quarter earnings so far have surpassed profit estimates, on course for the best performance since 2021, according to data compiled by Bloomberg Intelligence.
It’s still early in the season, given that less than a fifth of the index’s market capitalization has announced results. Still, it’s an indication that US profits remain strong in the face of tariffs and an uncertain economy.
A majority of S&P 500 firms typically surpass expectations, but this season stands out considering that analysts had set the bar higher by raising projections heading into the reporting period.
Robust earnings and signs of sustained investment in artificial intelligence are countering threats to stocks from China trade tensions and the government shutdown.
“US companies should continue to deliver superior earnings growth supported by a robust AI investment cycle, ongoing deficit spending, and a still resilient consumer,” JPMorgan Chase & Co. strategists led by Dubravko Lakos-Bujas wrote in a note.
He anticipates S&P 500 members will deliver another quarter of double-digit earnings growth at about 12%.
The JPMorgan team’s estimates are above consensus, which forecasts an increase of 7.7% in the third quarter compared with a year earlier.
The beats are coming from various sectors. Among banks, Citigroup and Morgan Stanley surpassed estimates. Meanwhile, General Motors soared after raising its profit guidance on buoyant truck sales and some tariff relief.
Coca-Cola also topped expectations as consumers snapped up the company’s beverages despite higher prices.
Better-than-expected earnings are a potential source of market confidence during the economic data vacuum caused by the US government shutdown, said Marija Veitmane, head of equity research at State Street Global Markets.
