September is the final month of the third quarter, meaning another earnings season is right around the corner. It could be a banner one, because data indicates analysts have been boosting earnings per share (EPS) for S&P 500 member firms at a notable rate.
Investors looking for ETFs with which to play what could be a stellar batch of quarterly updates may want to consider the Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM). Nvidia’s (NVDA) fiscal Q2 earnings out last month and Broadcom’s (AVGO) report out last week could be signs those funds will be earnings season winners. Those two semiconductor stocks combine for nearly 15% of the funds’ rosters.
Not only that, their earnings updates suggest the AI trade is alive and well. That indicates the technology sector — the largest sector exposure in QQQ and QQQM — will remain an important contributor to EPS growth in the U.S.
QQQ Earnings Allure
Confirmation awaits, but signs are pointing to QQQ and QQQM potentially being earnings season winners. For example, July and August represented the first time since Q2 2024 analysts boosted aggregate EPS forecasts in the first two months of a quarter.
“At the sector level, five of the eleven sectors witnessed an increase in their bottom-up EPS estimate for Q3 2025 from June 30 to August 28, led by the Information Technology (+4.4%), Energy (+4.0%), and Communication Services (+2.6%) sectors,” noted John Butters of FactSet. “On the other hand, five sectors recorded a decrease in their bottom-up EPS estimate for Q3 2025 during this period, led by the Health Care (-7.2%) sector. One sector (Utilities) recorded no change (0%) in its bottom-up EPS estimate for Q3 2025 during this period.”
The sector notes are pertinent. That’s because QQQ and QQQM devote about 79% of their lineups to tech and communication services stocks. The healthcare sector, a potential EPS offender, represents just 4.50% of the ETFs’ portfolios.
There are also some positive signs for full-year positive earnings revisions among sectors that loom large in the Invesco ETFs, notably communication services and consumer discretionary, which combine for more than 29% of the funds’ rosters.
“At the sector level, seven sectors witnessed an increase in their bottom-up EPS estimate for CY 2025 from June 30 to August 28, led by the Communication Services (+4.0%), Financials (+3.3%), and Consumer Discretionary (+3.0%) sectors,” added Butters.” On the other hand, three sectors recorded a decrease in their bottom-up EPS estimate for CY 2025 during this period, led by the Health Care (-2.1%) sector. One sector (Real Estate) recorded no change (0%) in its bottom-up EPS estimate for CY 2025 during this period.”
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