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EP. 3 EQUITIES

27% Earnings Growth and the Market Is Still Nervous — Here’s Why

The S&P 500 just posted its best earnings season in years. The Magnificent Seven underperformed. And analysts are pricing in 20%+ growth for the rest of 2026. Someone is going to be wrong.

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Q1 2026 earnings came in at 27.7% growth — the 11th consecutive quarter of year-over-year expansion and the highest beat rate since 2021. On paper, American companies have rarely looked this strong. But beneath the headline, the Magnificent Seven are underperforming the index for the first time, Health Care is the only sector in decline, and tariffs are creating a stark split between domestically-focused winners and import-dependent losers. James and Elena go sector by sector to ask the question every investor needs to answer heading into H2: is this earnings strength real, or are we looking at lowballed estimates and a market priced for a perfection that macro headwinds make increasingly unlikely?

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Disclaimer

This podcast is financial commentary for informational purposes only and does not constitute a recommendation to buy or sell any security. We are not a registered investment advisor. Consult a licensed financial professional before making any investment decisions.