Record-High Number of S&P 500 Technology Companies Providing Positive EPS Guidance for Q3 2025
October 6, 2025 — According to the latest analysis from FactSet, an unprecedented number of S&P 500 technology companies have issued positive earnings per share (EPS) guidance for the third quarter of 2025. This surge in positive outlooks highlights growing optimism within the technology sector amidst a generally cautious corporate earnings environment.
Quarterly Overview: Balanced Yet Optimistic Earnings Guidance
For Q3 2025, a total of 112 S&P 500 companies provided updated EPS guidance ahead of their official earnings reports. Of these, exactly half (56 companies) issued positive EPS guidance, while the other 56 companies issued negative EPS guidance. Notably, the count of firms providing negative guidance is the lowest since Q4 2021, falling below the 5-year average of 58 and the 10-year average of 60. Conversely, positive guidance numbers are significantly above historical averages—the highest since Q2 2021, with the 56 companies surpassing the 5-year average of 43 and the 10-year average of 39. This elevated number of companies offering upbeat forecasts has pushed the percentage of firms issuing positive guidance to 50%, well above the 5-year average of 43% and the 10-year average of 39%. It is also the strongest percentage recorded since Q3 2021, when 57% of companies issued positive guidance.
Technology Sector Leads the Upward Momentum
Driving this record-high positive guidance trend is the Information Technology sector, which leads all 11 S&P 500 sectors with 36 companies issuing positive EPS guidance for Q3 2025. This figure markedly exceeds the sector’s 5-year average of 21.4 and 10-year average of 19.5 companies providing positive guidance. In fact, since FactSet began tracking this metric in 2006, no quarter—including the previous one, Q2 2025—has seen so many technology firms issuing positive EPS guidance (the prior record was 29).
Within the technology sector, the Software industry and the Semiconductors & Semiconductor Equipment industry posted the highest numbers of companies with positive guidance—12 and 9, respectively—highlighting strength in key subsectors of tech.
Analysts’ confidence is further reflected in the bottom-up EPS estimate revisions for the sector, which experienced the second-largest increase of +3.6% during the quarter. This optimism coincides with the Information Technology sector having the highest projected earnings growth rate for Q3 2025 across all sectors, at 20.9%.
Defining EPS Guidance
For clarity, “guidance” or “preannouncement” refers to a company’s forward-looking projection or estimate of EPS, provided ahead of the release of actual financial results. Guidance is considered positive if it surpasses the mean EPS estimate as of the day before the guidance issuance. Conversely, it’s classified as negative if it falls below that consensus estimate.
Industry Expert Commentary
John Butters, Vice President and Senior Earnings Analyst at FactSet, who authored this earnings insight, noted that the elevated positive guidance from technology companies underscores more optimistic corporate and analyst outlooks relative to other sectors. Butters’ work provides critical analysis of earnings revisions, growth, performance, and valuation trends for the S&P 500 and is widely referenced by financial media and industry professionals.
Takeaway and Implications
The surge in positive EPS guidance, especially from the technology sector, suggests renewed confidence in earnings growth prospects heading into the latter half of 2025. This could have important implications for investor sentiment and market performance in a sector traditionally seen as a key driver of overall equity market gains.
However, investors should consider that guidance figures represent forecasts subject to change based on evolving market conditions. FactSet emphasizes that this information is provided solely for informational purposes and does not constitute investment advice.
For ongoing updates and detailed analysis, stakeholders are encouraged to consult FactSet’s comprehensive earnings reports and data resources.
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FactSet
October 2025
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