Corporate Earnings Exceed Expectations

Corporate America is delivering strong results this earnings season, easing concerns about the economic impact of the Iran war, rising energy prices and softening consumer sentiment. About two-thirds of the way through the period, 84% of S&P 500 companies have beaten earnings estimates according to FactSet data.

That figure exceeds the five-year average of 78%. All 11 top-level sectors are on track for year-over-year earnings growth for the first time in four years. "This is one of the best earnings seasons in 20 years," Deutsche Bank researchers wrote. Both the percentage of positive surprises and the magnitude of those surprises sit above recent averages.

Several large companies stood out on Wednesday. Uber reported a 25% rise in bookings. Its chief executive told CNBC that consumers continue spending locally with no signs of weakening. Disney posted better-than-expected operating income across its entertainment, experiences and sports divisions.

The company said consumers are visiting its parks at a healthy pace. CVS Health raised its 2026 earnings guidance after medical costs fell sharply. Novo Nordisk also lifted its outlook following a strong start for its first oral weight-loss pill, which has already generated 2 million prescriptions.

The popularity of GLP-1 medications is reshaping parts of the food industry. Nearly one in five American adults has used such a drug, many for weight loss. Households with at least one user cut grocery spending by more than 5% within six months, a December study in the Journal of Market Research found.

Frozen dinner makers have responded by reformulating products as high-protein, high-fiber options. Nestlé launched its Vital Pursuit brand in 2024 with meals such as a white cheddar mac and broccoli bowl containing 21 grams of protein. The company released three new meals last month and plans further expansion in both frozen and non-frozen categories.

Conagra, which oversees the Healthy Choice brand, is adding six new GLP-1-friendly frozen meals next month. Its beef merlot option contains 13 grams of protein. A Conagra executive said the logo targets interested shoppers but does not define the entire product line.

Some manufacturers have avoided the GLP-1 label. Saffron Road introduced protein-packed entrees last August without referencing the drugs, citing privacy concerns among early users. Its founder said attitudes are shifting and such treatments are becoming more openly discussed.

Higher fuel prices linked to the Iran war are creating uneven effects. The collapse of Spirit Airlines after jet fuel prices spiked shows the potential damage. Airlines face rising operating costs and have begun increasing checked baggage fees. Restaurant Brands International reported a 6.5% drop in comparable sales, its worst quarterly performance in at least 20 years.

The company’s earnings and revenue still topped Wall Street estimates, helped by a Burger King turnaround. Next, the British retailer, raised prices by as much as 8% outside Europe because of higher costs tied to the conflict. It reported better-than-expected sales in its home market during the first quarter and does not plan additional UK price increases.

Fleet operators in the UK are seeing targeted fuel thefts at depots. Criminal gangs drill into commercial vehicle tanks overnight, according to the Association of Fleet Professionals. The group said such incidents remain limited but reflect the incentive created by higher diesel prices.

Mixed Results Elsewhere Not all earnings news was positive. Warner Bros.

Discovery reported a first-quarter loss of $1.17 per share, missing estimates, with negative free cash flow of $476 million. Whirlpool posted sales of $3.273 billion, below the $3.445 billion consensus, and a loss of $1.43 per share. DoorDash shares rose more than 15% after the company reported 33% year-over-year revenue growth and issued strong guidance.

Albemarle shares surged following better-than-expected quarterly results driven by higher lithium prices and stronger volumes. Evolent Health is scheduled to report first-quarter results on May 7. Corporate earnings do not map perfectly to overall economic health.

Still, the breadth of beats this season offers a positive signal even as energy-driven challenges appear in specific industries.