FX.co ★ U.S. Corporate Profits Slip into Negative Territory in Q1 2026 After Strong Q4 2025

U.S. corporate profits declined in the first quarter of 2026, reversing the strong momentum seen at the end of last year. Quarter-over-quarter, profits fell by 0.4% in Q1 2026, compared with a robust 5.7% increase in the fourth quarter of 2025.

The data, updated on 28 May 2026, marks a notable shift in corporate earnings dynamics. While Q4 2025 reflected solid profit growth relative to the prior quarter, the latest figures indicate that companies are now contending with more challenging conditions, as profit growth has not only slowed but turned negative on a sequential basis.

The comparison is made on a quarter-over-quarter basis, with the current figure showing how profits in the first quarter of 2026 changed against the previous quarter, and the earlier 5.7% reading capturing the change in the fourth quarter of 2025 relative to the quarter before it.