Chicago, IL – November 24, 2025 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes Nvidia’s NVDA, Alphabet GOOGL, Tesla’s TSLA and Meta META.
Nvidia’s beat-and-raise quarterly results have eased the market’s AI-centric worries for now, but the issue is unlikely to go away completely.
The chipmaker has been a big beneficiary of the ongoing AI-focused spending surge, as it is Nvidia’s graphics processing units that are running the datacenters. The stock has lost ground as the aforementioned worries took hold at the start of this month, but it is still up more than +35% this year, handily outperforming the broader market.
The broader Mag 7 group, of which Nvidia is a key member, has returned largely in-line with the broader market, up +13.7% vs. a gain of +14.1% for the S&P 500 index. The market doesn’t appear to be equally worried about all AI players in the ongoing pullback, with Alphabet continuing to get credit for its efforts even as Meta and some of the others get shunned.
Nvidia’s Q3 earnings were up +57.3% from the same period last year on +62.5% higher revenues, putting the company on track to more than double its full-year 2025 earnings from the year-earlier level. Earnings for next year are currently expected to be up +55%, followed by +26.7% growth in 2027.
This seemingly decelerating growth trend is solely a function of base effects, as demand trends for Nvidia’s chips remain red hot over the next two years. Demand will eventually moderate as we move past the buildout phase of AI infrastructure, and the stock’s recent weakness is likely a reflection of that.
One could argue that the stock’s impressive gains over the last few years, that has pushed its market capitalization to over $4 trillion, have already factored in these expectations. But if estimates keep rising, as we are starting to see again following the beat-and-raise quarterly results, then Nvidia shareholders will legitimately expect the stock to sustain its positive trajectory.
Including Nvidia, the Mag 7 group’s Q3 earnings increased +28.3% from the same period last year on +18.1% higher revenues, which would follow the group’s +26.4% earnings growth on +15.5% revenue growth.
Not all members of the elite group are equally contributing to the growth pace, ranging from Tesla’s -39.5% earnings decline in Q3 to Nvidia’s +57.3% jump and Alphabet’s +33% growth pace.
Estimates for the current period (2025 Q4) are going up, with the current earnings growth rate of +15.4% up from +14.3% a week back and +12.2% two weeks ago.
The group’s 2026 earnings are currently expected to be up +14.6%, followed by +16.8% in 2027.
The important factor to keep in mind is that the Mag 7 earnings outlook is steadily improving.
Please note that the Mag 7 group is on track to bring in 26% of all S&P 500 earnings in 2026, up from 23.2% of the total in 2024 and 11.7% in 2019. Regarding market capitalization, the Mag 7 group currently carries a 34.7% weight in the index.
Including all reports released through Friday, November 21st, we now have Q3 results from 473 S&P 500 members, or 94.8% of the index’s total membership. The reporting cycle has come to an end for 10 of the 16 Zacks sectors, with most of the remaining results from the Tech and Retail sectors.
Total earnings for these companies are up +15.6% from the same period last year on +8.3% higher revenues, with 83.4% beating EPS estimates and 75.6% beating revenue estimates.
For the Retail sector, we now have Q3 results for 83.3% of the sector’s members in the S&P 500 index. Total earnings for these Retail companies are up +16.9% from the same period last year on +7.7% higher revenues, with 72% beating EPS estimates and 84% beating revenue estimates.
Please note that the +15.2% earnings growth rate for Q3 represents the blended growth rate for the quarter, which combines the actual results for the 473 companies that have reported with estimates for the still-to-come companies.
In terms of S&P 500 index ‘EPS,’ these growth rates approximate to $261.68 for 2025 and $292.52 for 2026.
For a detailed view of the evolving earnings picture, please check out our weekly Earnings Trends report here >>>>Q3 Earnings Season: Retail Sector in Focus
Since 2000, our top stock-picking strategies have blown away the S&P’s +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.
Get all the details here >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks “Terms and Conditions of Service” disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit /performancefor information about the performance numbers displaye
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Meta Platforms, Inc. (META) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
