Factset Insights: Analysts Expect Lower Earnings Growth From Mag 7 Compared to 2024
A number of the companies in the “Magnificent 7” have been top contributors to year-over-year earnings growth for the S&P 500 in recent quarters. Are companies in the “Magnificent 7” still expected to drive earnings higher for the S&P 500 for the first quarter?
Overall, the blended earnings growth rate for the S&P 500 for Q1 2025 is 7.2%.
In aggregate, the “Magnificent 7” companies are expected to report year-over-year earnings growth of 14.8% for the first quarter. Excluding these seven companies, the blended (combines actual and estimated results) earnings growth rate for the remaining 493 companies in the S&P 500 would be 5.1% for Q1 2025.
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$NVIDIA(NVDA)$ and $Amazon.com(AMZN)$, two of the companies in the “Magnificent 7” are projected to be among the top 5 contributors to year-over-year earnings growth for the quarter.
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Analysts expect the S&P 500 to report earnings growth of 10.0% for CY 2025 compared to earnings growth of 10.6% for CY 2024.
Analysts predict the companies in the “Magnificent 7” in aggregate will report (year-over-year) earnings growth of 15.9% for CY 2025 compared to earnings growth of 36.5% for CY 2024.
On the other hand, analysts project the other 493 companies will report (year-over-year) earnings growth of 8.3% for CY 2025 compared to earnings growth of 4.9% for CY 2024.
Thus, analysts expect lower earnings growth from the “Magnificent 7” companies and higher earnings growth from the other 493 companies for 2025 relative to 2024.
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