JPMorgan said the second-quarter earnings season is now in its later stages, with roughly 80% to 85% of companies in the United States and Europe having already reported results. The bank said earnings were strong across both regions, with a broad set of companies delivering earnings per share above market expectations. It also noted that the share of companies reporting EPS above consensus rose noticeably in both markets.
Despite elevated expectations heading into the reporting season, aggregate EPS for S&P 500 constituents continued to move higher, according to JPMorgan. At the same time, the proportion of companies cutting earnings guidance fell to its lowest level since 2021. On a regional basis, year-over-year earnings growth reached 25% in the U.S. and 23% in Europe, both above consensus forecasts. Revenue growth also remained solid, coming in at 14% in the U.S. and 10% in Europe. JPMorgan said energy accounted for a large share of earnings growth in both regions, helped by higher energy prices driven by geopolitical conflict, while financials and technology also made notable contributions.
JPMorgan said the second-quarter earnings season has entered its later phase, with about 80% to 85% of companies in the United States and Europe having reported results.
The bank said corporate earnings were strong this quarter across both regions. Companies in the U.S. and Europe both posted earnings per share, or EPS, above market expectations, and the beats were broad-based rather than concentrated in a narrow group. The proportion of companies reporting EPS above expectations increased noticeably in both markets.
JPMorgan also said that even though expectations were already high before the reporting season began, aggregate EPS for S&P 500 constituents continued to rise. The share of companies lowering earnings guidance has now fallen to its lowest level since 2021.
By region, year-over-year earnings growth reached 25% in the U.S. and 23% in Europe, both above consensus estimates. Revenue growth was also healthy, at 14% in the U.S. and 10% in Europe.
At the sector level, JPMorgan said a large part of earnings growth in both regions came from energy, supported mainly by higher energy prices linked to geopolitical conflict. Financials were also an important driver of earnings growth in the U.S. and Europe, and technology made a notable contribution as well.
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