During the Q4 2025 earnings season, companies are increasingly raising concerns about AI disruption, with mentions reaching a record 126 during earnings calls — nearly double the previous quarter and over three times the level from a year ago. Despite this growing caution, S&P 500 companies reported a year-over-year EPS growth of 12.0%, surpassing the estimated 8.4%, with over 75% of firms beating expectations. This contrast highlights the market’s tension, as stocks in the UBS US AI Risk basket, which focus on equities most at risk from AI’s transformative effects, have seen significant declines of over 50% in the past year.
S&P 500 Q4 2025 earnings up 12%, but AI fears rise sharply
