As of January 31, 2025, the S&P 500 is reporting a year-over-year earnings growth of 13.2% for the fourth quarter, surpassing the estimate of 11.8% made on December 31, 2024. This growth rate is the highest reported by the index since the fourth quarter of 2021, when it recorded 31.4%. Notably, 77% of S&P 500 companies have reported positive earnings per share (EPS) surprises, aligning with the five-year average. However, only 63% of these companies have beaten revenue estimates, which falls short of both the five-year average of 69% and the ten-year average of 64%. The market appears to be rewarding positive EPS surprises more than average for this quarter. Analysts are observing these trends closely as they gauge investor sentiment heading into 2025.