US businesses have shattered earnings forecasts, with Aggregate S&P 500 earnings per share up 11% over last year. This is the highest share in nearly four years, with 84% of companies beating Wall Street estimates.
According to Goldman Sachs, 60% of companies exceeded expectations by more than a standard deviation, while 58% increased their full-year guidance for the year. The S&P 500 has risen nearly 10% so far this year, reaching new record highs.
The decline in mentions of recession during corporate earnings calls is also notable, with a 84% decrease compared to last quarter. This trend is attributed to President Trump’s One Big Beautiful Bill, which boosted economic optimism and predicted customer growth, increased cash flow, and accelerated investment.
The record-breaking earnings season has been driven by the pro-growth tax reforms in the landmark bill, according to David Kostin, chief US equity strategist at Goldman Sachs. The strong earnings season is easing investors’ economic concerns and has made it one of the strongest on record.
Source: https://www.whitehouse.gov/articles/2025/08/trump-economy-ignites-record-breaking-earnings-surge-market-boom