Citi Asia Earnings Surprises: 2Q26 Review and 3Q26 Preview
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Citi's review of the 2026 second-quarter Asia earnings season finds a marked improvement: positive surprises exceeded negative ones by 6%, a significant swing from -8% a year earlier. Taiwan stood out, dominating positive surprises, with technology and financials leading earnings revisions. Despite the strong season, market reactions to reporting events were relatively muted, with average active return impacts close to negligible. Looking ahead to the third quarter of 2026, Citi expects energy, technology, and financials to perform well, with Taiwan remaining its preferred market alongside a positive market-level view on Thailand. Over the next three months, energy and financials are projected to deliver the most positive earnings results, while utilities and consumer staples carry the most negative third-quarter outlooks. The report's methodology combines a retrospective analysis of earnings surprises and revision trends across Asian markets and sectors with quantitative models that screen for potential surprises in the coming season. No individual stock recommendations are given; the output is confined to sector- and market-level quantitative screens.
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