S&P 500 Earnings Growth Nears 30% as Tech and Energy Lead

S&P 500 earnings growth is tracking near 30% year over year, but technology and energy account for much of the expansion as profit growth slows across other sectors.

The split is emerging as the U.S. third-quarter earnings season gets underway. Oil companies are expected to benefit from elevated crude prices, while technology companies continue to generate revenue from artificial-intelligence investment and infrastructure spending.

Earnings growth outside technology and energy is expected to slow to 7% in the third quarter from 12% in the second quarter. The moderation means the broader index is increasingly reliant on two sectors that already have high earnings expectations.

Technology stocks have climbed 36% in 2026, while energy stocks have surged 49%. The strong market performance has raised the bar for companies reporting results in both groups.

Chipmakers are forecast to report earnings growth of 130% from the year-earlier period. Energy companies are expected to post 122% growth. Results that fall short of those projections could increase pressure on the broader market, particularly if profit growth remains weak elsewhere.

The earnings gap also leaves overall index performance closely tied to continued artificial-intelligence spending and the ability of companies to turn that investment into revenue. Higher borrowing costs and geopolitical disruptions could complicate that outlook.

JPMorgan Chase, Wells Fargo, Citigroup and Goldman Sachs have already reported third-quarter results, with mixed performances across the major banks. UnitedHealth also exceeded expectations and raised its full-year profit outlook.

Investors will continue watching upcoming earnings reports for signs that growth is broadening beyond technology and energy as the reporting season progresses.