Will U.S. Industrial Sector Earnings Show Another Quarter of Growth?

Industrial stock performance has trailed the broader S&P 500 Index ($SPX) this year despite earnings strength.

The S&P 500 Industrials sector index is up 8.7% this year compared to 14% for the broader index. Higher fuel and raw materials costs, and higher labor costs, can be a drag on results. Delta Air Lines (DAL) last week cited the rise in fuel costs in its earnings miss; United Airlines (UAL) is expected to report a year-over-year decrease in earnings per share of 3.6% on Oct. 20, according to Zacks.

But revenue from AI-related projects could support third quarter earnings growth for industrials that can pass on costs to customers needing services and equipment to construct data centers and expand the U.S. power grid. Industrials are also supported by increased capital spending in defense and energy, although higher costs and possible delays in data center construction could temper growth. Detail on these projects will be something to listen for in 3Q conference calls. Median year-over-year 3Q earnings-per-share growth could accelerate to 13.9%, from 13.3% in the second quarter, according to a Bank of America analysis of 24 U.S. industrials.

The Morningstar U.S. Industrials Index outperformed U.S. equities much of this year but dipped below the broader basket of U.S. equities in September, partly reflecting questions about the trajectory of AI spending. Industrial stock valuations may be “fully valued,” but particularly in aerospace and defense, business services, and construction, the AI buildout and defense spending are driving growth, according to Morningstar.

In the next two weeks, a number of industrials in the Dow Jones Industrial Average ($DJI) report results, including 3M (MMM), Boeing (BA), and Honeywell International (HON). Separately, spinout Honeywell Aerospace (HONA), which began trading June 29, reports Oct. 28. 3M shares are up about 2% year to date through Tuesday’s close, while Boeing shares are down roughly 14% year to date, and Honeywell International shares are up more than 6%.

So far this year, lending standards have supported the U.S. manufacturing cycle and industrial production, especially in the machinery, iron/steel, pharmaceutical, and electrical industries. For more on U.S. industrial companies, see: Three Ways to Think About the Nuclear Power Boom

Here’s a short list of earnings dates in October for some of the largest U.S. industrial companies in the airline, defense, transportation, logistics, equipment, and machinery industries. (Dates may be subject to change.)

Select Industrial Sector Earnings Calendar for October 2026

Oct. 20

• 3M (MMM)
• GE Aerospace (GE)
• RTX (RTX)
• Northrop Grumman (NOC)
• United Airlines (UAL)

Oct. 21

• CSX (CSX)
• Southwest Airlines (LUV)
• United Rentals (URI)
• Wabtec (WAB)
• Waste Connections (WCN)

Oct. 22

• American Airlines (AAL)
• Dover (DOV)
• Honeywell International (HON)
• Lockheed Martin (LMT)
• Norfolk Southern (NSC)
• Ryder (R)
• Union Pacific (UNP)

Oct. 27

• Boeing (BA)
• United Parcel Service (UPS)
• Waste Management (WM)

Oct. 28

• FedEx (FDX)
• GE Vernova (GEV)
• Honeywell Aerospace (HONA)
• Old Dominion Freight Line (ODFL)

Oct. 29

• Republic Services (RSG)
• Textron (TXT)
• Trane Technologies (TT)
• XPO (XPO)

Oct. 30

• Canadian National Railway (CNI)

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Data contained herein is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed. All events and times listed are subject to change without notice.