Q4 Earnings Up 12.9% Drive Q1 Tech Revisions, Accenture Under Pressure
S&P 500 Q4 earnings rose 12.9% year-over-year on 8.9% higher revenues, with 76.4% of companies beating EPS estimates and 71.9% beating revenue forecasts. Positive Tech sector estimate revisions have boosted Q1 2026 forecasts, despite negative sentiment toward legacy IT consulting stocks like Accenture after Gartner’s 69% trailing-12-month share decline.
1. S&P 500 Q4 Earnings Growth
Total earnings for the 335 S&P 500 companies reporting Q4 rose 12.9% year-over-year on 8.9% higher revenues, with 76.4% beating EPS estimates and 71.9% beating revenue forecasts, underscoring broad fundamental strength across sectors.
2. Tech Sector Estimate Revisions
Positive estimate revisions in the Tech sector have been the primary driver lifting aggregate Q1 2026 earnings forecasts, offsetting negative revisions in 10 other sectors and maintaining an overall upward revisions trend for the calendar year.
3. Legacy IT Consulting Sentiment
Investor sentiment toward legacy IT consulting providers has turned negative, illustrated by Gartner’s 69% trailing-12-month share decline, raising concerns for peers like Accenture even as the broader Tech sector outlook remains positive.