Notably, 58% of companies lifted their full-year 2025 outlook, double the first quarter’s pace
Second-quarter earnings season is closing on a strong note, defying investor fears of tariff-related damage.
Despite new US import duties imposed earlier this year, S&P 500 companies reported impressive growth, with profits rising 11% year-over-year—nearly triple Wall Street’s 4% expectation.
About 84% of companies beat estimates, making it one of the strongest seasons on record.
Goldman Sachs highlighted that a weaker US dollar boosted overseas sales, while firms preserved margins by renegotiating with suppliers, shifting supply chains, raising prices, and cutting costs.
Notably, 58% of companies lifted their full-year 2025 outlook, double the first quarter’s pace.
Mega-cap tech firms led the charge, with the Magnificent 7 delivering 26% earnings growth, although Tesla lagged with declining revenue.
Analysts expect steady sales growth across large and mid-sized companies through 2025. Still, Goldman warned that 2026 margin forecasts may prove too optimistic, especially as tariff pressures persist.