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3h ago

S&P 500 Q2 Earnings Jump 11% as Mega-Cap Tech Defies Tariffs

Tariff-driven costs pose new challenges for sustaining profit gains into 2026.

Specialist trader Michael Pistillo (2nd L) gives a price for a stock just after the opening bell on the floor of the New York Stock Exchange August 28, 2014.
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Overview

  • Aggregate S&P 500 profits rose about 11% year-over-year in Q2, with 84% of companies beating Wall Street estimates and 58% raising full-year guidance.
  • The Magnificent 7 mega-cap tech firms delivered roughly 26% EPS growth, accounting for a disproportionate share of the index’s earnings surge.
  • Tariffs implemented in early 2025 have yet to dent overall corporate earnings as companies navigate supply-chain shifts, price pass-through and cost cuts.
  • The S&P 500 is up nearly 10% year-to-date and has repeatedly hit record highs while mentions of a “recession” in earnings calls plunged 84%.
  • The White House credits President Trump’s pro-growth policies for the strength even as analysts warn that trade duties and lofty margin forecasts could curb future gains.