Global Quant Strategy: EPS Revisions Landscape: Earnings Up, Prices Down; When Revisions Don’t Deserve a Rally!

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Global Quant Strategy: EPS Revisions Landscape: Earnings Up, Prices Down; When Revisions Don’t Deserve a Rally!

J P M O R G A N Global Markets Strategy

23 July 2026

Global Quant Strategy

EPS Revisions Landscape: Earnings Up, Prices Down;

When Revisions Don’t Deserve a Rally!

• Global Profit Expectations Rise, Opportunities in Quality Sectors. Global Quantitative Strategy

AC Global profit expectations are climbing even as equity prices have recently Khuram Chaudhry

lagged. The world markets sit approximately 2% below recent highs, yet L/S (44-20) 7134-6297

momentum (-5%), the Kospi and semiconductors (-20%) have sold off far khuram.chaudhry@jpmorgan.com

more sharply. The earnings season is off to a strong start and sell-side analysts Ayub Hanif, PhD

keep lifting both EPS and sales forecasts; for example, the 1-month consensus (44-20) 7742-5620

net EPS revisions stand at +13.1% and 3-month revisions have risen from ayub.hanif@jpmorgan.com

+5.3% to +10.5%. The upgrades are broad, led by the USA, Japan, and a fast- William Summer

improving Europe, while Asia Pac ex-Japan and emerging markets still lag. (44-20) 7742-6079

william.summer@jpmorgan.com

The key question is whether the gap between prices and earnings expectations J.P. Morgan Securities plc

is a mispricing set to correct higher, or an early red flag for the profits outlook?

We believe the most compelling opportunities are in High Quality, rather than

High Risk stocks and sectors. Global Markets Strategy

• Earnings Up, Prices Down: When Revisions Don’t Deserve a Rally! Dubravko Lakos-Bujas Global / Americas

Earnings upgrades are plentiful, but the trend in revisions suggests the fuel may Global Quantitative Strategy

Khuram Chaudhry Global

be running low. Consider that 1) the PPI vs.