Q1 2025 earnings season insights
J.P. Morgan Wealth Management
As we reflect on first-quarter earnings season, over 90% of S&P 500 companies have reported their Q1 2025 results. Impressively, 78% of these companies have surpassed earnings per share (EPS) estimates, a testament to their adaptability amidst challenging conditions. This performance not only exceeds the five-year average of 77% but also the 10-year average of 75%. Despite the backdrop of tariff concerns, companies have so far managed to navigate through with various adjustments.
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A notable aspect of this earnings season is the continued commitment to capital expenditure (capex) despite a dip in CEO confidence. This indicates a strategic focus on long-term growth and expansion, suggesting that companies are prioritizing investments to drive future success despite potential near-term headwinds.
Looking ahead, while tariffs and trade policy shifts pose significant concerns, they also present opportunities. Sectors such as technology, utilities and financials continue to offer promising prospects, driven by advancements in artificial intelligence, increased power demand and the potential benefits emanating from deregulation. As we navigate through this current period of volatility, we remain constructive in our outlook on U.S. equities for the year ahead.
Capex continues to rise despite low confidence
All market and economic data as of 05/14/25 are sourced from Bloomberg Finance L.P. and FactSet unless otherwise stated.
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J.P. Morgan Wealth Management
