S&P 500 sales growth hits a near five-year high, with energy in front
FactSet puts Q2 S&P 500 revenue growth at 15%, led by energy and technology, though a slower second half is forecast.
By Frankie Delgado · News Reporter
2 min read
S&P 500 sales growth is running at 15% year over year for the second quarter, a rate that would be the index’s strongest since late 2021 if it holds, according to FactSet’s August 7 earnings update. The figure is blended, meaning it combines reported results with estimates for companies still to report; 88% of the index had posted Q2 results at that point.
FactSet said the 15% rate would be the best since the fourth quarter of 2021, when S&P 500 revenue grew 16.1%. The estimate has climbed steadily, from 9.5% on March 31 to 12.2% on June 30 and then 15% as earnings season progressed.
What is driving S&P 500 sales growth?
Energy is out front. The sector’s revenue rose 42.5% from a year earlier, the fastest of the 11 S&P 500 sectors tracked by FactSet. MarketWatch attributed the sector’s strength in part to high oil prices.
FactSet said average oil prices were $92.55 in the second quarter, compared with $63.68 a year earlier, a 45% increase. The firm said that rise contributed to energy-sector revenue growth.
The gains reached across the sector’s five listed sub-industries. Refining and marketing posted 53% revenue growth, followed by integrated oil and gas at 46%. Exploration and production grew 32%, storage and transportation rose 28%, and equipment and services increased 2%, according to FactSet.
Technology was the other major force in the headline number. Information Technology recorded 35.9% revenue growth, FactSet said, making it the second-fastest-growing sector. Communication Services ranked third at 15.3%.
The concentration is clear in the arithmetic: without Energy and Information Technology, FactSet’s blended S&P 500 revenue-growth rate would be 9.7% rather than 15%. That is a 5.3-percentage-point difference.
Is the sales growth broad beyond energy and technology?
Yes, though the pace varies. All 11 sectors were reporting, or had reported, year-over-year revenue growth, according to FactSet, and five were in double-digit territory. FactSet also said 76% of reporting companies beat revenue estimates, while aggregate reported revenue was 3.2% above estimates.
Energy, Health Care and Financials supplied the largest positive revenue surprises behind the increase since June 30, FactSet said. Energy and Health Care were the biggest contributors during the week before the August 7 update.
The revenue picture should be kept separate from the index’s profit figures. FactSet’s sales-growth measure tracks revenue, while its earnings-growth data are a different metric and include their own company-specific factors.
Analysts expect the revenue pace to cool later in 2026. FactSet forecast S&P 500 revenue growth of 11.3% for the third quarter and 10.9% for the fourth, both below the Q2 blended rate.
This story draws on original reporting from MarketWatch.