As markets continue to wrestle with inflation and tariff concerns, a common question among investors is whether corporate leaders are sounding the alarm during earnings season. To test this assumption, we reviewed the actual commentary from companies.
FactSet’s Document Search tool, which scans transcripts for keywords, was used to analyze inflation in earnings calls for all S&P 500 companies reporting between March 15 and June 13, 2025. The result?
Only 228 companies mentioned “inflation.”
This is nearly identical to the average of 231 mentions per quarter seen from Q1 to Q4 of 2024. It’s also notably below the 5-year average of 254—marking the fifth consecutive quarter with fewer than 250 mentions of inflation in earnings calls.
While this might appear surprising given recent headlines, it may suggest that inflation pressures, though still present, are being viewed more as a “known known” rather than a disruptive force.
Long-Term Context Still Matters
While inflation in earnings calls has dropped from peak levels, the Q1 2025 figure is still above the 10-year average of 189 mentions. So while inflation may be fading from the top of earnings commentary, it hasn’t fully returned to pre-pandemic levels of irrelevance.
This indicates a new normal where inflation remains part of the strategic conversation, albeit with less urgency.
Sector Highlights: Who’s Talking About Inflation?
Some sectors continue to cite inflation heavily:
- Industrials: 46 companies mentioned inflation
- Financials: 40 companies
However, when viewed as a percentage of total sector participants, the data becomes more telling:
- Consumer Staples: 86% of companies cited inflation
- Materials: 81% of companies
These sectors are more exposed to input costs, labor expenses, and commodity price shifts—so inflation remains a central concern in their operations and investor communication.
What This Means for Investors
The current level of inflation in earnings calls suggests the issue has become a managed variable, rather than a disruptive force. That’s not to say inflation isn’t real—it’s just that many companies are adapting.
Still, investors should remain vigilant:
- Inflation can resurface quickly depending on commodity prices, labor markets, or policy changes.
- Some sectors will continue to feel inflation’s impact more acutely than others.
Inflation Citing on Earnings Call
Final Thought:
By tracking inflation in earnings calls, we gain a better read on how companies are internalizing macro conditions. And for now, the message seems clear: it’s not gone, but it’s not a panic point either.
Disclaimer: Nothing here should be considered investment advice. All investments carry risks, including possible loss of principal and fluctuation in value. Finomenon Investments LLC cannot guarantee future financial results.
