October 26, 2025

The U.S. stock markets have kicked off the third-quarter earnings season on a strong note, even though some big names like Netflix and Texas Instruments disappointed this week. So far, 143 companies have shared their results. According to LSEG IBES data as of Friday, the S&P 500 profits are estimated to have jumped by 10.4% compared to last year. Surprisingly, 87% of these companies have beaten analysts’ earnings predictions, and 82% have topped revenue estimates—both numbers are higher than usual. But hold onto your seats! The busiest week of this season is just around the corner, with over 170 companies ready to reveal their results. This stellar lineup includes the tech giants Microsoft, Apple, Alphabet, Amazon, and Meta Platforms. Together, they are called the “Magnificent Seven,” a group whose huge market value has made them the shining stars of stock indexes and supercharged profit growth in recent years. Although their profit lead over other companies is shrinking, these giants are still expected to shine brighter. Earnings for the Magnificent Seven are forecasted to rise 16.6%, while the rest of the index is expected to grow by 8.1%, says Tajinder Dhillon, a top research analyst at LSEG. Many of these megacap tech companies are also leaders in the artificial intelligence world — a hot favorite driving the market's energy. "The factor that is probably going to have the most influence between now and the end of the year is going to be these big tech (reports)," says Anthony Saglimbene, chief market strategist at Ameriprise Financial. "The hurdle rate is very high for these companies coming into next week's earnings." Alongside the tech giants, big names like drugmaker Eli Lilly, oil leaders Exxon and Chevron, plus payment giants Visa and Mastercard are also gearing up to announce their earnings next week. This thrilling earnings season promises action, surprises, and a peek into the future of markets. Ready for the fireworks?

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Tags: U.s. stock markets, Third-quarter earnings, Magnificent seven, Microsoft, Apple, Artificial intelligence,