Five Earnings All-Stars Face a War-Touched Quarter

A single earnings disappointment from any of these five companies could signal that even the most reliable performers are not insulated from war-driven economic shocks.

Earnings season for Q1 2026 begins amid geopolitical uncertainty caused by four weeks of the Iran War. The conflict has disrupted energy markets, with energy prices spiking due to potential closure of the Strait of Hormuz. Volatility in energy prices creates macroeconomic pressure that may affect consumer spending, corporate costs, and forward guidance.

Netflix, Abbott Laboratories, PepsiCo, Charles Schwab, and Taiwan Semiconductor Manufacturing Company are set to report earnings this week. Each of these companies has a track record of consistent earnings beats over the past five years, with TSM achieving 20 consecutive quarterly beats. Analysts expect Netflix earnings to rise 25.7% in 2026, Schwab’s to increase 20.1%, and TSM’s to jump 35.6%.

Investor expectations are elevated, with share prices already reflecting strong performance: TSM is near all-time highs, up 26.8% year-to-date, while Abbott is down 19.4% despite its earnings consistency. Forward P/E ratios remain below or near market averages: Abbott at 17.7, PepsiCo at 18.2, Schwab at 16.2, and TSM at 25.7, making them relatively attractive in a volatile market. Any miss on earnings or weakened guidance could trigger outsized market reactions given the streaks and valuations.