FactSet found that 84% of S&P 500 companies beat their average earnings-per-share estimate for Q1 2026 to date, while LSEG counted an 83.2% beat rate among companies that had reported by May 8. By May 21, 94% of the index had posted results, with aggregate earnings running 16.6% above expectations.
FactSet reported that 84% of S&P 500 companies posted actual EPS above the mean estimate for Q1 2026 to date. A separate count from LSEG put the beat rate at 83.2% among the 440 companies that had reported by May 8.
Aggregate earnings run 16.6% above forecasts
By May 21, 94% of S&P 500 companies had reported Q1 2026 results. With such a large share of the index already in, the breadth reduces the chance that a small group of companies is skewing the read. FactSet's Earnings Insight showed aggregate earnings coming in 16.6% above expectations for the quarter, and together the two figures underscore how estimates kept getting surpassed late into the reporting season.
FactSet also found that the market has been punishing negative EPS surprises more than average this quarter, a dynamic that raises the stakes for companies that miss.
What might be driving the high beat rate
Conservative analyst assumptions and corporate guidance can lift beat rates when actual results clear those guarded expectations. Cost discipline and efficiency gains may also be supporting margins, translating modest revenue growth into stronger EPS than models assumed. Sector mix matters too: when the index's largest weights outperform estimates, the aggregate surprise can rise even if beats elsewhere are more modest.
What to watch next
The final Q1 2026 tallies from FactSet's weekly Earnings Insight and LSEG's This Week in Earnings will show whether the beat rate and aggregate surprise hold as the remaining companies report. Revenue beat rates and forward EPS estimate revisions are the next data points likely to shape how the quarter is read for S&P 500 companies.
Sources: FactSet, LSEG/Refinitiv
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