Q1 Earnings Kick Off: Strong Results and Record CEO Confidence Anchor the Market

by Christine Short of Wall Street Horizon, 4/21/26

Key Takeaways

  • Banks and chip names kicked off earnings season with robust results last week
  • The S&P 500® is projected to deliver its sixth consecutive quarter of double-digit earnings growth at 13.2%, fueled largely by a powerhouse 45% expansion in the Information Technology sector.
  • CEOs appear confident as the earnings season kicks off according to our latest LERI reading

The Q1 2026 earnings season has officially started, and the early results suggest a market that is largely defying the geopolitical fog we’ve discussed.

Big bank earnings last week revealed a significant bifurcation between Wall Street and Main Street, as powerhouse investment banking rebounds offset a more cautious outlook on lending. Goldman Sachs led the charge with a 48% surge in investment banking fees and a blowout $17.55 EPS1, while JPMorgan2 and Bank of America3 reported healthy consumer spending despite trimming their full-year Net Interest Income guidance. Morgan Stanley4, Citigroup5, and Wells Fargo6 also delivered solid beats, though their CEOs collectively signaled a "complex set of risks." Jamie Dimon highlighted that while the economy remains resilient, persistent inflation and geopolitical tensions make the long-term outlook harder to navigate than in previous cycles.

In the semiconductor space, TSMC and ASML served as the definitive AI bellwethers, proving that the appetite for high-end infrastructure remains insatiable. TSMC posted record Q1 revenue on the back of surging 2nm and 3nm chip demand7, while ASML raised its full-year 2026 sales guidance to as high as €40 billion, citing an "AI Supercycle" that is outpacing current tool supply.8 These results suggest that chip names are being fueled by a structural infrastructure race rather than cyclical hype, as memory makers like Samsung and SK Hynix accelerate capacity expansions to keep up. While ASML warned of a minor "air pocket" in Q2 due to timing, the overarching theme is that AI demand is providing a massive floor for the industry.

Including reports from 28 S&P 500 names last week, the blended EPS growth rate increased to 13.2% from 12.6% last week, the sixth quarter of double digits bottom-line growth. Revenue growth ticked up to 9.9% from 9.8% last week, the highest top-line growth rate since Q3 2022.9

On Deck this Week: Tech, Autos, and Economic Anchors

Looking ahead to next week, the spotlight shifts to the tech giants and the first look at big auto following the 2025 tariff resets. We expect high-stakes reports from Tesla, IBM, Intel and UnitedHealth, alongside industrial heavyweights like Boeing and 3M.

On the economic front, all eyes will be on Retail sales out Tuesday, April 21 and University of Michigan’s Survey of Consumers out on Friday, April 24.

Read more: Double-Digit Growth and the Visibility Gap