Viram Shah, Founder & CEO, Vested
"US companies are entering the Q3 earnings season with a high bar, with analysts expecting S&P 500 earnings to grow 29.6% year-on-year on 12.3% higher revenue, which would mark the third straight quarter of earnings growth above 25%. The first round of US bank earnings has been broadly resilient, although the results are more mixed than the headline profit growth suggests. Goldman Sachs was the standout, reporting EPS of $17.01 versus expectations of $13.02, with revenue rising 23% to $18.7 billion, while JPMorgan’s profit grew 6% to $15.3 billion but EPS of $5.57 came in below the $5.85 expected. Citigroup and Wells Fargo also beat profit expectations.
With 62% of companies issuing positive guidance, compared with a five-year average of 40%, the bigger question for markets is whether this earnings strength can broaden beyond banks, technology and AI-linked companies. For investors, a broader earnings recovery would support a healthier market rally, while continued concentration would make stock selection and valuations increasingly important."
