- Morgan Stanley anticipates more earnings surprises this season.
- 181 companies will report earnings this week, covering 45% of total market capitalization.
- The bank flags 12 stocks expected to see upward earnings revisions and KPI outperformance.
It's been a good earnings season for upside surprises so far — and Morgan Stanley says there more are on the horizon.
On average, earnings are beating consensus estimates by about 10% so far for Q1, which is "tracking ~2x the long-term average," Mike Wilson, Morgan Stanley's chief US equity strategist, wrote in a note to clients on Monday.
This week, 181 companies will report earnings, accounting for 45% of the total market capitalization, the bank said.
To highlight potential opportunities in the days ahead, the bank's analysts compiled a list of stocks they rate "Overweight" and expect to outperform their key performance indicators.
A major theme the bank flags is continued AI adoption, which should inform bullish narratives around continued earnings strength.
Further, our systematic transcript analysis shows that companies are increasingly quantifying the benefits they are seeing from AI Adoption. Among the S&P 500, 25% mentioned at least one quantitative impact in 1Q26, up from 13% in 1Q25," the bank said.
Below, are 12 stocks on that list that report earnings in the coming week, and that the bank also expects to see upward 12-month earnings revisions for after they report.
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