Earnings Update: Profit Growth Spiked Last Week with Energy in Lead

The news keeps getting better for profits: S&P 500 earnings growth spiked to 47.4% last week, from 38% the prior week, with more companies reporting, according to the latest FactSet Insight report.

Excluding large GAAP earnings surprises last week from Alphabet (GOOGL) and Amazon.com (AMZN), the blended S&P 500 earnings growth rate would fall to 28.8% from 47.4% this quarter, according to FactSet. But even with that caveat, with 61% of SPX companies reporting 2Q results, the index is on track for its seventh consecutive quarter of double-digit earnings growth. Despite high energy prices resulting from the U.S.-Iran war, analysts are increasing third-quarter earnings estimates.

In fact, the energy sector is benefiting from elevated crude oil prices. Eight S&P sectors are now reporting double-digit earnings growth for Q2 2026, led by Energy (135.3%), Communication Services (109.8%), Consumer Discretionary (90.7%), and Information Technology (69.4%), according to FactSet.

With prospects for renewed U.S.-Iran negotiations, the price of oil is down more than 6% to near $79 per barrel. FactSet calculations show the average oil price in the second quarter was roughly $92, up 45% from the second quarter of 2025.

Energy Earnings in Focus as Oil Tumbles

In line with the broader index, about 60% of the S&P energy sector reported through Friday. Today, S&P oil-and-gas pipeline and infrastructure operator The Williams Companies (WMB) reports results. Two other large energy players are also on the docket Monday, ONEOK, Inc. (OKE), another midstream player, and Diamondback Energy (FANG), which develops, explores and produces oil and gas primarily in the Permian Basin in West Texas. Tuesday, Marathon Petroleum (MPC), a refiner in the S&P, and EOG Resources (EOG), an E&P, also report.

Friday, two U.S.-based global oil-and-gas exploration and refining giants reported results: ExxonMobil (XOM), which missed EPS expectations, and Chevron (CVX), which got a boost from acquired assets. ConocoPhillips (COP) also reported results on Friday.

More oil-and-gas M&A is likely in the Permian Basin, says Stewart Glickman, Deputy Research Director and Energy Equity Analyst at CFRA. See Stewart Glickman: XOM, CVX Stay Focused on Shareholder Returns

Tech and Artificial Intelligence Investment in Early Innings?

Bellwether Palantir Technologies (PLTR), which develops artificial intelligence and data analytics software for government, military, and commercial customers, reports results Monday. Traders, investors, and analysts will be watching for margin growth, commercial expansion, and any uptick in guidance.

Tech Analyst Dan Ives offered his take on tech earnings and the AI outlook, saying AI is still in the "third inning" with only about 5% of companies paying for AI adoption. See Dan Ives' Big Tech Earnings Takeaways: 'AI Still in the Early Innings.'

Economic Events/Data (ET), Monday 8/3

• 09:45 AM: S&P Global Manufacturing PMI, Final (Jul)
• 10:00 AM: ISM Manufacturing PMI (Jul)
• 10:00 AM: Construction Spending (MoM) (Jun)
• 02:00 PM: Senior Loan Officer Opinion Survey on Bank Lending Practices

Earnings Calendar, Monday 8/3

• Premarket: Tyson Foods, Inc. (TSN), Marriott International, Inc. (MAR), CNA Financial Corporation (CNA), EchoStar (ECHO)
• Postmarket: Palantir Technologies Inc. (PLTR), ON Semiconductor (ON), Snap Inc. (SNAP), Vertex Pharmaceuticals Incorporated (VRTX), Clorox Company (CLX), ONEOK, Inc. (OKE), Diamondback Energy (FANG), SBA Communications Corporation (SBAC) 

For the full week’s calendar of economic and earnings events, see Week Ahead: Jobs Report, ISM Services and AMD Earnings Drive the Tape

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