JP Morgan said the Q2 earnings season is in its late stage, with about 80–85% of
US and European companies reported. EPS broadly beat expectations across both
regions and the share of companies reporting upside rose materially. Despite
elevated pre-season expectations, aggregate S&P 500 EPS continued to climb, and
the proportion of firms lowering earnings guidance fell to its lowest level
since 2021. YoY EPS growth ran about 25% in the US and 23% in Europe, both above
consensus. Revenue growth was also healthy, roughly +14% YoY in the US and +10%
YoY in Europe. A large portion of the earnings gain came from the energy sector,
supported by geopolitically driven higher energy prices; financials and
technology were also significant contributors.
