Key Takeaways
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This week marks the last peak week for the Q1 2026 earnings season with 2,043 companies expected to report
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The S&P 500® is projected to deliver its sixth consecutive quarter of double-digit earnings growth at 27.7%, fueled largely by a powerhouse 50% expansion in the Information Technology sector
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The macro picture will also be in focus this week as CPI, PPI and Retail Sales for April are released
Earnings Update: Tech and Travel Rise While Fast Food Signals Caution
The tech sector saw explosive moves last week as AMD surged 18% following a massive revenue beat and aggressive AI guidance from CEO Lisa Su.1 Palantir also trended higher, rising roughly 3% as its US commercial growth and AI platform adoption exceeded analyst expectations.2 These results suggest that while the AI trade is becoming more selective, infrastructure and software leaders with clear monetization paths continue to command a premium.
Consumer-facing companies offered a more cautious narrative. Disney kicked things off with its Q1 2026 report on Tuesday. After the report the stock jumped 7% on the strength of its streaming turnaround and resilient theme park demand.3 In contrast, the restaurant space showed a stark divergence; McDonald's managed a slight EPS beat while noting a "cautious" low-income consumer4, whereas Shake Shack plummeted 30% due to shrinking margins.5
The travel and leisure space remains a bright spot, with Marriott posting a robust earnings beat driven by a 12% increase in gross revenue and strong global booking trends. Airbnb also had a strong showing, topping revenue forecasts and raising its full-year outlook as global travel momentum drove a 19% increase in gross booking value.
Ride-share results were also mostly positive. Uber surged 9% after shattering expectations with record gross bookings of $53.7 billion and a 44% jump in earnings per share, signaling massive operating leverage despite a slight revenue miss due to strategic price cuts.6 Lyft posted a mixed quarter with a revenue beat but an earnings miss, yet shares rose nearly 1.5% as investors focused on its robust $1.1 billion free cash flow and strong demand growth.7
Including the 126 S&P 500 companies that reported last week, EPS growth stands at 27.7% for Q1 2026, up from 27.1% in the prior week. This is on target to be the highest quarterly earnings growth rate for the index in a little over four years (Q4 2021 reported 32% growth). Revenue growth currently stands at 11.3%, up from 11.1% in the prior week. This could be the highest revenue growth rate since Q2 2022.8
Read more: AI, Oil, and the Consumer Are In the Spotlight
Macro Update: Labor Strength and the Inflation Triple Threat
Last week’s macro focus centered on the labor market, with ADP private payrolls, Nonfarm payrolls, and The Challenger report all depicting a resilient labor market. ADP private payrolls released on Wednesday showed an increase of 109,000 jobs for April, significantly higher than the consensus estimate of roughly 84,000 to 99,000 and marking the fastest pace of private-sector hiring since early 2025.9 On Wednesday the Challenger Report from Challenger, Gray & Christmas noted that while April saw a 38% MoM uptick in job cut announcements, that number was down 21% YoY.10
The main event for labor market watchers, however, came on Friday with the release of the Bureau of Labor Statistics’ Employment Situation Summary. April Non-Farm Payrolls increased by 115,000, much better than the Dow Jones estimate for 55,000. The unemployment rate remained steady at 4.3%, while wage growth cooled slightly to a 0.2% monthly increase, bringing the year-over-year gain to 3.6%.11 All three reports confirmed that the low-hire low-fire trend that began early in 2025 persists.
Looking ahead to next week, the economic calendar shifts toward inflation and consumer health with a triple threat of high-impact data. Investors are bracing for the Consumer Price Index (CPI) and Producer Price Index (PPI) releases on Wednesday and Thursday, which will provide a critical update on whether inflationary pressures are continuing to moderate or remain sticky above the Fed's 2% target. Additionally, the mid-week Retail Sales report will serve as a vital litmus test for the American consumer, helping to clarify if the cautious spending habits recently noted by major fast-food chains are becoming a broader trend across the economy.
Earnings on Deck this Week
The earnings season begins to wind down from here on out. This week will see only 11 S&P 500 companies report for Q1 2026.
Source: Wall Street Horizon
Q1 2026 Earnings Wave
This week (May 11 - 15) is the last peak week of the Q1 2026 earning season, with 2,043 companies expected to report (out of our universe of 11,000 names). Thus far, 87% of companies have confirmed their earnings date and 61% have reported.
Source: Wall Street Horizon
The Bottom Line
As the Q1 2026 earnings season reaches its final peak, the fundamental narrative remains one of surprising corporate resilience set against a backdrop of macroeconomic transition. While the tech and travel sectors were stand-outs this week, the sharp sell-offs in the restaurant space serve as a warning on certain cohorts of the US consumer just ahead of retail earnings reports. With the labor market holding steady, the market’s focus now pivots entirely to next week’s inflation data. The upcoming CPI and Retail Sales reports will determine if this historic earnings momentum can survive a higher-for-longer interest rate environment, or if the cracks seen in consumer discretionary spending are the beginning of a broader cooling trend.
1 AMD Reports Q1 2026 Results, May 5, 2026, https://ir.amd.com
2 Palantir Reports Q1 2026 Results, May 4, 2026, https://investors.palantir.com
3 Disney Reports FQ2 2026 Results, May 6, 2026, https://s206.q4cdn.com
4 McDonalds Reports Q1 2026 Results, May 7, 2026, https://corporate.mcdonalds.com
5 Shake Shack Reports Q1 2026 Results, May 7, 2026, https://investor.shakeshack.com
6 Uber Reports Q1 2026 Results, May 6, 2026, https://investor.uber.com
7 Uber Reports Q1 2026 Results, May 7, 2026 https://d1io3yog0oux5.cloudfront.net
8 FactSet Earnings Insight, John Butters, May 8, 2026, https://advantage.factset.com
9 ADP® National Employment Report, April 2026, May 6, 2026, https://adpemploymentreport.com/
10 Challenger Report: April Job Cuts Rise 38% from March; YTD Cuts Down 50%, May 7, 2026, https://www.challengergray.com
11 April Employment Situation Summary, Bureau of Labor Statistics, May 8, 2026, https://www.bls.gov
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