Wall Street braced for a downturn but got one of the strongest earnings seasons in two decades.
A full 84% of S&P 500 companies surpassed Q1 2026 earnings projections, according to FactSet data from May 6. That beats the five-year average of 78%, and it's happening despite an ongoing conflict in Iran, rising energy costs, and stubborn inflation.
The S&P 500 hit record highs on April 30, capping its best month since 2020.
Deutsche Bank analysts called this one of the most impressive earnings seasons in 20 years. They highlight potential growth across all 11 S&P sectors, a rare achievement suggesting this rally isn't just Big Tech carrying the load.
Uber posted 25% growth in bookings. Disney reported strong visitor turnout at its parks. CVS Health issued an optimistic 2026 forecast.
The 84% beat rate is six points above the five-year norm, signaling genuine momentum beyond typical guidance games. Broad-based strength across all sectors could mean a healthier, more sustainable rally ahead.