Tech and Semiconductors Account for 65% of S&P 500 Q1 EPS Growth
Amazon, Google, Meta, and Microsoft contributed 34% of the S&P 500's year-over-year EPS growth in Q1 2026, while semiconductors added another 31%. The combined 65% share is up from 52% a year ago, with semiconductors expected to take the lead in Q2.
Amazon, Google, Meta, and Microsoft together accounted for roughly 34% of the S&P 500's year-over-year earnings per share growth in the first quarter of 2026, according to recent data. Semiconductor firms added another 31%, meaning these two groups drove nearly two-thirds of the index's profit expansion.
In the same period a year earlier, the two groups contributed a combined 52% of EPS growth. Looking ahead to the current earnings season, analysts project that semiconductor companies will increase their share by 17 percentage points to a record 48% in Q2 2026. Meanwhile, the contribution from Amazon, Google, Meta, and Microsoft is expected to drop by 25 percentage points to roughly 9%.
The data points to a clear rotation in earnings leadership within the S&P 500, with the semiconductor sector gaining momentum relative to the mega-cap tech names that have dominated in recent quarters.
Source: The Kobeissi Letter