Earnings growth: what it is and how to read it
It measures how much the company's profit has changed from the previous year. In the long run, a share price tends to follow its earnings.
How it is calculated
Earnings growth = (this year's earnings − last year's earnings) / last year's earnings.
How to read it
If earnings grow faster than revenue, the company is improving its margins. Sustained 10% annual growth doubles earnings in about 7 years.
Earnings growth in the MeridIAn ranking
Among the 1,742 companies in the ranking with data, the median Earnings growth is +15.3%: half are below and half above. The lowest 25% are below −3.6% and the highest 25% above +48.8%.
For example: NVIDIA, +127.8%; Apple, +28.7%; Alphabet, +294.0%; Banco Santander, +8.7%.
By sector
| Sector | Median | Companies with data |
|---|---|---|
| Basic Materials | +26.2% | 117 |
| Communication Services | +2.5% | 79 |
| Consumer Cyclical | +12.8% | 171 |
| Consumer Defensive | +7.2% | 106 |
| Energy | +69.2% | 88 |
| Financial Services | +15.7% | 312 |
| Healthcare | +15.1% | 153 |
| Industrials | +13.4% | 347 |
| Real Estate | +7.9% | 82 |
| Technology | +34.6% | 210 |
| Utilities | +10.6% | 77 |
Highest Earnings growth
What to watch out for
Starting from a bad year gives huge percentages that mean little, and a one-off gain makes the following year look like a fall. Compare over several years.
Related metrics
All metrics in the glossary → · Stocks by sector and country → · Ready-made screeners →
General information for educational purposes, not investment advice. Figures from the latest weekly analysis (Oct 8, 2026) with the latest available price.