Q1 Earnings Season Drives Rotations
Key Questions
What is the beat rate for Q1 earnings season?
Q1 earnings show 81-90% EPS beats at a peak, driven by semiconductor streaks like INTC +24% with $0.29 EPS and AI-DC +22%, AMD +12%. Banks also supported by buybacks.
Which sectors underperformed in recent earnings?
Software and legacy tech missed expectations, with NOW, IBM, and HON declining 8-18%. This contrasts with strong semis performance fueling rotations.
How are earnings affecting market rotations?
Mega dispersion is unwinding post-META/MSFT, thinning vols and driving rotations into AI, health, and energy versus Nasdaq records. Semis and banks lead the beats.
81-90% EPS beats peak with semis streak (INTC +24% $0.29EPS/AI-DC +22%, AMD +12%), banks buybacks; software/legacy misses (NOW/IBM/HON -8-18%), mega dispersion unwind post-META/MSFT thins vols, fueling AI/health/energy rotations vs Nasdaq records.
Sources (2)
Updated Apr 25, 2026