As of mid-March 2025, the S&P 500 (SPX) is facing a challenging earnings outlook for the first quarter. A total of 65 companies within the index have issued negative earnings per share (EPS) guidance, exceeding both the five-year average of 56 and the ten-year average of 62. Analysts have also revised Q1 EPS estimates down by 3.8% since December 31, surpassing the ten-year average decrease of 3.2%. The anticipated year-over-year earnings growth for SPX is now projected at 7.1%, a decline from the earlier estimate of 11.6% at the end of December. Revenue growth expectations have similarly decreased, with a current forecast of 4.2% compared to the previous estimate of 5.1%. The forward 12-month price-to-earnings (P/E) ratio for SPX has dropped to 19.9, aligning closely with the five-year average of 19.8. Additionally, the trailing 12-month P/E ratio is now at 24.6, nearly equal to the five-year average of 24.5. Despite these challenges, some analysts maintain a bullish outlook for 2025 EPS growth rates, predicting increases of 7%, 10%, 12.6%, and 11% for each quarter of the year.