60% of EPS figures significantly exceeded expectations—the strongest revenue beat in four years—this is among the top ten highlights of U.S. equity earnings so far.

So far, 30% of U.S. equities have reported earnings; key highlights are as follows: 1. Strongest revenue beat in four years Société Générale (SocGen) data shows that 84% of companies beat consensus EPS estimates, and 79% beat revenue expectations. In past years, EPS beats were primarily driven by margin surprises—but this earnings season, revenue-side surprises are the strongest in four years. Goldman Sachs notes that earnings reports easily cleared the low bar set ahead of the quarter: 60% of companies posted EPS more than one standard deviation above consensus (historical average: 48%), while only 11% posted EPS more than one standard deviation below consensus (historical average: 13%). 2. Market remains rational Stocks with earnings beats outperformed by 0.9% on a relative basis; those missing expectations underperformed by 1.5%, reflecting classic rational market reactions. 3. Broader margin expansion Overall S&P 500 profit margins continue to rise—even after excluding the technology sector (see cover chart). 4. Highest EPS revision ratio in three years The EPS revision ratio stands at 1.4—the highest in three years—meaning for every 10 downward revisions, there are now 14 upward revisions.

U.S. equity earnings season shows explosive profit growth—but where does the 'water' lie?

The Q2 2026 U.S. equity earnings season is reshaping market expectations for corporate profitability. S&P 500 EPS growth year-on-year briefly reached 45%, far exceeding the ~22% expected at the start of the quarter—and the proportion of companies beating EPS estimates is at a historical high. Yet behind these impressive numbers, the composition of earnings is shifting. Goldman Sachs’ decomposition reveals that roughly 19 percentage points of S&P 500 Q2 EPS growth came from ‘other income’ at Alphabet and Amazon—primarily unrealized gains on equity investments—not core operating profit growth. Excluding these non-operating items, S&P 500 Q2 EPS growth still stood at ~26%, indicating fundamentals remain sound. At the same time, however, U.S. equity earnings are becoming increasingly reliant on a handful of AI-benefiting firms. Mega-cap tech companies continue expanding capital expenditures—and are now financing AI infrastructure investments via both debt and equity issuance. In other words, the central question of this earnings season is not whether profits grew, but rather: where did that growth come from—and is it sustainable? Nearly half of the 45% EPS growth came from investment income The most closely watched figure this quarter is the S&P 500’s 45% year-on-year EPS growth—a rate substantially higher than prior market expectations. Yet Goldman Sachs analysis indicates a sizable portion originated from the ‘other income’ line item. Data show Alphabet and Amazon together contributed approximately 19 percentage points to S&P 500 EPS growth in Q2, mainly from unrealized gains on private equity investments; Microsoft also contributed roughly $3 billion in other income. Specifically, Alphabet’s Q2 other income totaled ~$98 billion, and Amazon’s ~$53 billion—largely attributable to rising valuations of private company equity stakes. After stripping out these factors, S&P 500 Q2 EPS growth falls to ~26%. While markedly lower than the headline 45%, it remains one of the strongest quarterly growth rates since 2021. This implies U.S. equity earnings are not solely propped up by accounting ‘beautification,’ yet earnings quality is evolving: investment income is becoming an increasingly significant component of large tech firms’ profits. Data show that in Q2 2026, ‘other income’ accounted for 61% of GAAP profits among mega-cap tech firms—well above long-term historical averages. Better earnings—but diminishing market rewards If headline earnings remain robust, market reactions tell a different story. As of July 31, 61% of S&P 500 companies had reported Q2 results, covering ~66% of the index’s total market capitalization. Roughly 64% of these companies posted EPS at least one standard deviation above consensus—near a historical high. Yet the stock price gains following earnings beats have notably weakened compared to prior periods.

Koppers Holdings Delivers 21.2% Q2 2026 Earnings Beat, Revenue Up 3%

Aug 7, 2026

Koppers Holdings reported Q2 2026 adjusted earnings of $1.37 per share, beating analyst expectations by 21.2%. Revenue increased 3% year-over-year to $520.1 million, driven by robust volume growth in domestic utility poles.

AlphaStreet

2026-08-07

Koppers Holdings Delivers 21.2% Q2 2026 Earnings Beat, Revenue Up 3%

2026-08-11

Koppers Holdings Inc. Q2 Earnings and Revenues Top Estimates on Performance Chemicals Segment Strength

Koppers Holdings Delivers 21.2% Q2 2026 Earnings Beat, Revenue Up 3%

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