S&P 500 Earnings Surge as Revenue Growth Hits Three-Year High
New York, Thursday, 19 February 2026.
S&P 500 earnings rose 12.7%, marking the tenth consecutive quarter of growth. Notably, revenue increased 9.0%, the fastest pace since 2022, driven primarily by strong technology sector performance.
Tech Giants Drive Historic Revenue Pace
As of February 19, 2026, the S&P 500 is exhibiting robust financial health, underscored by a blended revenue growth rate of 9.0% for the fourth quarter of 2025 [5]. If this rate holds through the conclusion of the reporting season, it will represent the highest year-over-year revenue increase for the index since the third quarter of 2022 [5]. While the aggregate earnings growth of 12.7% marks the tenth consecutive quarter of expansion [1], the revenue story is heavily concentrated in specific high-performing sectors. The Information Technology sector has been a primary engine of this growth, with reported earnings surging 17.4% on 15.6% higher revenues [1]. This performance is significantly bolstered by industry heavyweights; for instance, Apple reported revenues of $143.76 billion, up from $138.39 billion in the prior year, while Microsoft saw its revenue climb to $81.27 billion [5].
Sector Divergence and Industrial Resilience
While technology leads the headline numbers, the broader market is showing nuanced sector rotation. The Industrial Products sector has demonstrated resilience, with earnings rising 5.6% on substantial revenue growth of 12.1% [1]. Investors have responded favorably to these results; the median stock price reaction for Industrial Products companies following their Q4 reports has been an increase of 2.72% [1]. This positive sentiment extends to the Utility sector, where companies like DTE Energy have outperformed expectations. DTE reported fourth-quarter operating earnings of $1.65 per share, an increase of 9.272% from the $1.51 reported a year prior [6]. Following the affirmation of its 2026 guidance—projecting operating EPS between $7.59 and $7.73—DTE stock surged more than 30% in pre-market trading earlier this week [6].
Retail Earnings and Future Outlook
Attention turns today to the consumer and agricultural landscapes as major components of the S&P 500 release their figures. Walmart is in focus this Thursday, February 19, with its stock pulling back slightly after a significant 23% rally leading up to the report [2]. Simultaneously, Deere (DE) was scheduled to report results before the opening bell this morning, providing further insight into the agricultural equipment market [6]. These reports are arriving as the market begins to recalibrate its expectations for the remainder of the year. Analysts are currently forecasting a moderation in momentum, with S&P 500 revenue growth expected to slow to 8.7% in the first quarter of 2026 [5].