The US retail sector has reported robust third-quarter earnings, with major players including Amazon, Target, and Home Depot exceeding analysts’ expectations.

According to data from Zacks Investment Research, total earnings for retail companies in the S&P 500 are up 18.5% compared with the same period last year, supported by an 8.4% rise in revenues.

Nearly 70% of companies beat earnings per share estimates, while over 80% exceeded revenue forecasts.

Q3 performance highlights for major retailers

Amazon recorded a 29.3% increase in quarterly earnings, driven primarily by its cloud computing operations, alongside an 11.9% rise in revenues.

Target and Home Depot also contributed to the sector’s strong showing, reflecting steady consumer demand despite broader economic uncertainties.

Zacks noted that top-line growth across the sector remained solid, although profit margins continued to face some pressure, albeit less severe than in previous quarters.

S&P 500 and S&P 600 retail comparisons

Among S&P 500 retailers, 23 of 30 companies, or 76.7%, have released Q3 results, while in the S&P 600 small-cap index, 23 of 33 retailers, or 69.7%, have reported.

Earnings growth for the S&P 600 retail companies that have reported stood at 17.9%, with revenue up 6.1%.

The proportion of companies exceeding earnings and revenue estimates remained significant across both indexes, highlighting consistent sector resilience.

Earnings outlook and analyst revisions

Looking ahead, combined earnings for all S&P 500 companies are projected to rise 14.8% for Q3, on revenue gains of 8.1%.

While early estimates for the quarter showed upward revisions, recent trends have seen a modest downward adjustment for Q4.

Analysts continue to monitor retail sector performance closely, noting that the majority of large and small-cap companies are outperforming historical averages in terms of earnings and revenue surprises.