The US earnings season for Q4 2025 continues, with mixed but generally resilient results, according to FactSet.

• 73% of reporting companies have beaten revenue expectations vs. 5-year average: 70% vs. 10-year average: 66%

This suggests that top-line demand remains relatively solid despite tighter financial conditions.

• 74% of companies have beaten EPS expectations vs. 5-year average: 78% vs. 10-year average: 76%

While still strong in absolute terms, earnings outperformance is running slightly below historical averages, potentially reflecting:

• margin pressure
• higher financing costs
• wage and input cost dynamics
• less aggressive cost-cutting leverage

📈 Revenue resilience supports the soft-landing narrative 📉 Softer EPS beat rate hints at margin compression risks

If revenue remains strong but earnings surprises moderate, markets may begin to shift focus from growth momentum to profitability sustainability.

Investors will now watch:

• forward guidance revisions
• margin outlook commentary
• sector-level dispersion (tech vs. cyclicals vs. defensives)

The tone of guidance may matter more than the headline beat rates at this stage of the cycle.