Despite a strong start to the 2025 earnings season with S&P 500 companies beating earnings estimates by 7% and revenues by 1% in the first quarter, executive sentiment on the US economy remains pessimistic. The ratio of positive to negative mentions about the economy during Q1 2025 earnings calls fell to its lowest level since the 2008 Financial Crisis, dropping to approximately 1.7x compared to 3.1x previously. As of late April, 36% of S&P 500 companies had reported Q1 results, with 73% beating earnings per share (EPS) estimates, slightly below the five- and ten-year averages. Earnings per share growth for reporting companies stood at around 10% year-over-year, with a 64% revenue beat rate. Bank of America data showed reported earnings ahead by 9% year-over-year and 13% EPS growth excluding Financials and Energy sectors. However, analysts have been revising 2025 earnings estimates downward, with the earnings revision ratio near a record low and consensus EPS for 2025 trimmed by about 1.5%, still implying 10% year-over-year growth. Healthcare has been a standout sector for earnings growth, while tariff impacts have yet to affect results.