Situation Room: 1Q IG earnings final update: stellar growth

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Situation Room: 1Q IG earnings final update: stellar growth

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Situation Room

1Q IG earnings final update: stellar growth

Credit Analysis

1Q IG earnings final update: stellar growth 13 May 2026

Most of the 1Q earnings season is now behind us. By now, 86% of the aggregate Credit Strategy

expected 1Q earnings are reported. These almost-final results show that the earnings United States

growth in 1Q was the strongest since 2021. Cross Product

1Q earnings growth = 13% YoY for core US IG issuers YuriCreditSeligerStrategist

Earnings have come in 9.2% ahead of expectations at the start of the season, the BofAS+1 646 855 7209

strongest since 4Q-2021 and well above 3.7% pre-Covid average surprise (Exhibit 1). yuri.seliger@bofa.com

Revenues were +1.5% above expectations, also above the 0.7% pre-Covid average Sohyun Marie Lee

(Exhibit 2). For our “core core” IG issuers ex. Finance, Energy and the Magnificent 7, we CreditBofAS Strategist

are tracking 12.8% YoY earnings growth and a similar earnings surprise of 8.5%. That is +1 646 855 7217

sohyun.lee@bofa.com

notably higher than the 2.6% YoY earnings growth and 1.9% earnings surprise in 4Q.

Earnings details In this report

Based on actual results when available and the latest bottom-up consensus estimates

otherwise, we are now tracking +20.9% YoY earnings growth for all US IG public issuers, Daily supply snapshot

and +23.7% YoY earnings growth ex. the more volatile Energy & Finance. Note that we

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use the adjusted earnings that exclude large one-time gains for GOOGL, META, and

AMZN. Using GAAP EPS for the three companies results in earnings growth of +26.3% Daily HG fund flows

YoY for our universe of HG public issuers.

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