Zacks Earnings Trends Highlights: Nvidia and Micron

Zacks argues the S&P 500’s Q2 earnings season remains broadly constructive, with aggregate profits now expected to rise 22.3% year over year on 11.0% higher revenue. The report highlights continued upward revisions across most sectors, especially Tech, Energy, Basic Materials, Utilities and Business Services. Nvidia and Micron are singled out as major contributors to the Tech sector’s growth, while removing them would cut Tech’s Q2 earnings growth from 44.8% to 25%. The note also stresses that Energy has benefited from elevated oil prices linked to the Iran war, but expects that tailwind to fade as oil prices normalize, potentially pressuring Energy estimates. For markets, the key takeaway is that strong earnings revisions still support risk sentiment, particularly for large-cap tech and semiconductors, even if some cyclical sectors face downgrades.