S&P 500 Earnings Revisions Hit Highest Positive Momentum Since 2021: What’s Behind This Rising Bullish Sentiment Among Executives? – SPDR S&P 500 (ARCA:SPY)

Upward earnings revisions for the S&P 500, tracked by the SPDR S&P 500 ETF Trust SPY, are now the most positive they’ve been since 2021, signaling renewed executive and analyst confidence in corporate outlooks.

Upward EPS Revisions Touch Multi-Year High

On Monday, Liz Thomas, Head of Investment Strategy at SoFi, posted on X, sharing a chart showing that a little under 65% of S&P 500 companies have revised their earnings per share guidance upward for the next twelve months. This essentially means that corporate executives expect higher earnings through this year and the next.

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The chart is now at its most positive level since 2021, and this is despite substantial macroeconomic and geopolitical uncertainties surrounding trade and tariffs.

Investment research firm Bravos Research noted a month ago that this upward revision came after 15 consecutive weeks of downside earnings revisions early this year, at the peak of “Liberation Day” tariff-related uncertainties.

“Overall, it seems that US corporations are actually coming out on the other side of these fears stronger,” the post says, adding that this development as a whole is “very constructive for the stock market.”

Strong Q2 Earnings Scorecard

According to Factset’s Earnings Insights report, 81% of the S&P 500 companies have posted a positive earnings surprise during the second quarter of 2025, with 90% of companies having reported their results.

This marks an increase from the first quarter, when 78% of companies in the index beat their earnings per share estimates during the quarter. This was already ahead of the 5-year average of 77% and the 10-year average of 75% companies beating earnings estimates.

This can be seen as part of the reason why executives are more optimistic about their earnings guidance for the upcoming quarters and year.

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