Goldman Sachs: S&P 500 companies’ profits rise 11% in Q2 2025

Corporate earnings for companies in the S&P 500 exceeded expectations in the second-quarter earnings season, benefiting from strategies to offset the impact of tariffs and a weak dollar.

Goldman Sachs analysts said in a note cited by Bloomberg on Monday that aggregate earnings for the index rose 11% in Q2, surpassing analysts’ expectations of 4%.

David Kostin, Goldman Sachs’ chief US equity strategist, noted that this quarter recorded one of the highest rates of earnings beats on record.

He added that US companies’ profit margins held up against tariffs thanks to their ability to negotiate with suppliers and adjust supply chains.

Kostin cautioned, however, that profit margins could come under pressure if companies are forced to absorb a larger share of tariff costs than expected.