Q3 Earnings Season: What to Expect

Q3 Earnings Season: What to Expect

Earnings season is approaching, with the S&P 500’s Q3 reports set to start in earnest the week of October 13. Unusually, analysts have raised per-share estimates 0.1% over the quarter, defying the average 1.4% decline seen over the past five years. S&P 500 earnings are now expected to rise 8% year-over-year. Of 112 companies issuing guidance, a record 56 have positive outlooks. 

US Stocks Rule the World

US firms dominate the global corporate leaderboard, Sherwood News has reported, comprising 80% of the world’s 25 largest companies in terms of market cap. Europe has just one entrant, ASML [ASML], at No. 25. Among the top 100, 58 US companies total $39trn, or 74% of the market. US dominance is driven by the artificial intelligence-fueled (AI) BATMMAAN stocks worth $22.5trn, while Europe’s heavyweights lean toward slower-growth luxury, industrials and pharma sectors. 

A Step Closer to Artificial Super Intelligence

SoftBank [SFTBY] is to acquire ABB’s robotics unit for $5.4bn, advancing its AI-driven strategy, according to the Financial Times. “SoftBank’s next frontier is physical AI,” CEO Masayoshi Son said in a statement on Wednesday. “Together with ABB Robotics, we will unite world-class technology and talent under our shared vision to fuse artificial super intelligence and robotics — driving a groundbreaking evolution that will propel humanity forward.”

Will a C-Suite Shakeup Help or Hinder Spotify? 

It was recently announced that Spotify [SPOT] CEO Daniel Ek will step into an executive chairman role in January 2026. Co-CEOs Gustav Söderström and Alex Norström will assume operational leadership. Spotify says the move “formalizes” an operational structure already in place. However, the timing coincides with backlash over Ek’s investment in defense tech via his venture firm Prima Materia, which prompted several artists to remove their catalogs. OPTO unpacks the possible ramifications of this move. 

New Nvidia Deal in the Middle East

The US has approved multi-billion-dollar Nvidia [NVDA] AI chip exports to the UAE, advancing a bilateral AI agreement, Bloomberg detailed. In return, the UAE will match chip imports with US investments as part of a $1.4trn, decade-long commitment. The deal, linked to a 5GW Abu Dhabi data center with OpenAI, allows up to 500,000 advanced chips annually, though the first licenses exclude G42, an Emirati OpenAI partner.

China Steps Up Rare Earths Curbs

China has tightened rare earth export rules, expanding April’s controls, the country’s Ministry of Commerce said. Licenses will likely be denied to arms makers and some semiconductor firms, while technology for mining, processing or magnet production requires government approval. The move comes ahead of an anticipated meeting between presidents Xi Jinping and Donald Trump later this month, Seeking Alphareported.

Is Quantum Computing at an Inflection Point?  

Quantum Computing [QUBT] recently announced a $750m private placement — part of a broader $1.6bn capital-raising effort — to accelerate production capacity, fund acquisitions and expand its engineering team. While the move signals confidence and institutional backing, it also raised investor concerns about dilution and execution risk. OPTO examines the investment case for QUBT stock and compares it to its main competitors.