We are halfway through the second-quarter earnings season, with 48% of U.S. companies having reported, and earnings performance is very strong, supported by the fading of COVID-related disruptions, accelerating momentum in business activity, and favorable base effects. Furthermore, despite the already high expectations we had going into the quarter, a record number of companies are beating both revenue and EPS estimates.

The percentage of S&P 500 companies beating earnings per share and revenue estimates has risen this quarter to its highest level since 2009.

The S&P 500's combined EPS for Q2 is +72% year-over-year, compared with +44% year-over-year at the start of the year, having risen 8% since the start of the quarter.

88% of S&P 500 companies that have reported have beaten EPS estimates.EPS growthfor these companies is +83% year-over-year, exceeding expectations by 18%. Materials, Consumer Discretionary, and Financials are posting very strong EPS growth, while most of the remaining sectors are also experiencing double-digit growth. Meanwhile, revenue growth is at +23% year-over-year, beating expectations by 5%. All sectors are experiencing positive revenue growth.

Finally, looking ahead to the coming quarters, it is encouraging that corporate guidance has remained solid so far.Of the companies that have provided updates to their earnings guidance for the fiscal year, 78% have issued upward revisions.