S&P 500 Q1 Earnings Jump to 13.2%, Setting Sixth Straight Double‑Digit Quarter

**TL;DR** The S&P 500’s blended earnings growth for Q1 2026 rose to 13.2%, up from 12.2% a week ago, extending the streak of double‑digit yearly gains to six quarters. The index’s forward 12‑month P/E now sits at 20.9, above its five‑ and ten‑year averages.

Context The earnings season is early, with about 10% of S&P 500 firms having reported Q1 results. Of those, 88% beat EPS estimates, delivering an average surprise of 10.8%. Financials and Communication Services drove the week‑over‑week increase, while Energy and Health Care saw downward revisions that kept the overall growth flat versus the end of the quarter.

Key Facts - The blended earnings growth rate is 13.2% today, matching the end‑of‑quarter figure and up from 12.2% last week. - This marks the sixth consecutive quarter of year‑over‑year double‑digit earnings growth for the index. - The forward 12‑month P/E ratio stands at 20.9, exceeding the five‑year average of 19.9 and the ten‑year average of 18.9. - In price terms, the S&P 500 (^GSPC) rose 0.4% to 5,420 points, giving the index a market cap of roughly $42 trillion. Apple (AAPL) added 1.2% to $195 per share, Microsoft (MSFT) gained 0.9% to $340, and JPMorgan Chase (JPM) rose 0.8% to $185.

What It Means Strong earnings beats are lifting valuations, pushing the P/E above historical norms and signaling investor confidence in continued profit expansion. The sector mix shows eight of eleven areas projecting growth, led by IT, Materials, Financials, and Utilities, while Energy and Health Care lag. If the trend holds, analysts forecast Q2‑Q4 2026 earnings growth of 20.1%, 22.2%, and 19.9%, respectively, for a full‑year 2026 increase of 18.0%.

What to watch next Next week, 93 S&P 500 companies—including seven Dow 30 members—are slated to report Q1 results, which could either reinforce the current growth trajectory or reveal emerging pressures in the lagging sectors.