Zacks Earnings Trends Highlights: Walmart, Home Depot and Amazon

For Immediate ReleaseChicago, IL – August 28, 2025 – Zacks Director of Research Sheraz Mian says, "The Retail sector’s Q2 performance compares favorably to what we have seen from these S&P 500 companies in other recent periods, particularly on the revenues side."Breaking Down Retail Earnings: Good or Bad?Note: The following is an excerpt from this week’s Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>>Here are the key points:For the Retail sector, we now have Q2 results from 98.4% of the sector’s market capitalization in the S&P 500 index. Total earnings for these Retail sector companies are up +12.9% from the same period last year on +6.6% higher revenues, with 75% beating EPS estimates and an equal proportion beating revenue estimates.The Retail sector’s Q2 performance compares favorably to what we have seen from these S&P 500 companies in other recent periods, particularly on the revenues side. The Q2 earnings and revenue growth pace of +12.9% and +6.6% drops to +1.1% and +4.6% once Amazon’s substantial contribution is excluded from the reported numbers.While the Q2 EPS beats percentage of 75% for these S&P 500 Retail sector companies is tracking below the 20-quarter average of 79.3%, the revenue beats percentage of 75% is notably above the 20-quarter average of 67.5%. The ex-Amazon revenue growth pace is similarly reflective of an improving growth trend.For the small-cap S&P 600 index, we now have Q2 results from 77.1% of the Zacks Retail sector’s members in the index. Total earnings for these small-cap retailers are up +2.5% on +1.9% higher revenues, with 70.4% beating EPS estimates and 66.7% beating revenue estimates.The Retail Sector – S&P 500 vs. S&P 600We have a dedicated sector classification for Retail rather than grouping these companies with the Consumer Discretionary and Consumer Staples sectors. We believe that the stand-alone Retail sector allows for a more nuanced and granular understanding of the space.For reference, Zacks has 16 ‘economic’ sectors, including the Retail sector, which compares to 11 such sectors in the ‘official’ S&P classification system. We also have dedicated sectors for the Automobile, Construction, Aerospace/Defense, Transportation, and Business Services sectors. Please note that the Zacks Retail sector includes conventional brick-and-mortar operators like Walmart WMT and Home Depot HD, restaurant players, and e-commerce players like Amazon AMZN.For the Retail sector in the S&P 500 index, we now have Q2 results from 28 of the 32 companies, or 87.5% of all the retailers in the large-cap index. For the small-cap S&P 600 index, we now have Q2 results from 27 of the 35 retailers, or 77.1% of the retailers in the index.Total Q2 earnings for the Retail sector companies in the S&P 500 index that have reported are up +12.9% from the same period last year on +6.6% higher revenues, with 75% beating EPS estimates and an equal proportion beating revenue estimates.Total earnings for the 77.1% of Retail sector members in the S&P 600 index that have reported Q2 results already are up +2.5% on +1.9% higher revenues, with 70.4% beating EPS estimates and an equal proportion beating revenue estimates.Favorable Revisions TrendAs we have consistently highlighted in recent weeks, the overall revisions trend remains favorable. We see this in estimates for the current period (2025 Q3) as well as for the last quarter of the year.For 2025 Q3, the expectation is for earnings growth of +4.8% on +5.8% revenue gains.Since the start of Q3 this month, estimates have modestly increased for five of the 16 Zacks sectors, including Finance, Tech, Energy, Retail, and others.On the negative side, Q3 estimates remain under pressure for the remaining 11 Zacks sectors, with significant declines to estimates for the Medical, Basic Materials, Construction, Transportation, and other sectors.For the Tech sector, Q3 earnings are expected to be up +11.1% from the same period last year on +11.9% higher revenues.The Earnings Big PictureCombining the estimates for the still-to-come S&P 500 member results with actuals from the 479 companies, total Q2 earnings are on track to increase by +12.1% from the same period last year on +6.1% higher revenues.The aforementioned favorable revisions trend validates the market’s rebound from the April lows. With the Q2 reporting cycle now effectively behind us, the revisions trend has plateaued in recent days.Why Haven't You Looked at Zacks' Top Stocks?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 access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comZacks.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 https://www.zacks.com/performance for information about the performance numbers displayed in this press release.Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free Now >>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 Amazon.com, Inc. (AMZN): Free Stock Analysis Report Walmart Inc. (WMT): Free Stock Analysis Report The Home Depot, Inc. (HD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks