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AI Companies Expected to Drive 31% Uptick in Q3 Earnings

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AI Companies Expected to Drive 31% Uptick in Q3 Earnings

American third-quarter corporate earnings are reportedly set to jump on the strength of artificial intelligence.

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That’s according to a report Friday (Oct. 9) by Reuters, which noted that investors are both enthusiastic about this surge but concerned about its longevity.

Analysts are expecting a roughly 31% increase in S&P 500 earnings for the quarter, with two-thirds of that uptick coming from the tech sector and AI leaders like Google, Amazon and Meta, said Tajinder Dhillon, LSEG’s head of earnings and equity research.

Tech share increases helped drive the S&P 500 to a record high this week ahead of the earnings season, which begins this week with reports from banking giants like JPMorgan and Goldman Sachs, Reuters added.

“It’s all AI and, to a lesser extent, energy and materials, but that’s because of geopolitics,” Sameer Samana, head of global equities and real assets at Wells Fargo Investment Institute, told Reuters. “It wouldn’t surprise me if 70-80% of the growth can be attributed to tech and AI.”

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Meanwhile, earnings from U.S. semiconductor providers, some of the largest beneficiaries of the AI boom, are projected to have risen 136% for the third quarter after a 158% increase in the second, Dhillon said, citing LSEG data.

“Earnings estimate revision momentum is starting to cool,” said Nick Raich , CEO of The Earnings Scout , an independent research firm.


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