The widely diversified Zacks Business Services sector, which houses consulting, outsourcing, staffing and waste management companies, to name a few, is a major beneficiary of economic health.
The sector benefited from the broader economy's recovery in the second quarter of 2026. Strengthening service activities and improving supply chains, along with sector-specific factors such as service essentiality, rapid digital transformation, and SaaS/subscription models, fueled growth in the quarter.
Some prominent players like Dave Inc. DAVE, Duolingo, Inc. DUOL, Corpay, Inc. CPAY and Aptiv PLC APTV are set to reveal their second-quarter numbers next week.
Q2 Tailwinds for Business Services
According to the "advance" estimate released by the Bureau of Economic Analysis, real GDP grew at an annual rate of 1.5% during the April-June period of 2026.
The demand for business services improved steadily on the back of sound service activities. Per the Institute of Supply Management, the Services PMI came in at 54% in June, marking the 24th consecutive month in the expansion zone.
Among services industries, transportation and warehousing, finance and insurance, retail trade, accommodation and food services, rental and leasing, and health care and social assistance registered growth in June.
Earnings Picture So Far & Expectations
The second-quarter earnings for the S&P 500 members of the business services sector have been impressive so far. The latest Earnings Outlook suggests that earnings of those S&P 500 members of the business services sector that have reported results rallied 5.2% year over year on 10.9% revenue growth, with 92.3% of the companies beating EPS estimates and 76.9% topping revenue projections.
Total quarterly earnings of the S&P 500 members of the sector are anticipated to display 7.6% year-on-year growth. Revenues will likely reflect an 8.7% rise. This compares with 12.4% and 12.1% growth in earnings and revenues in the first quarter of 2026, respectively.
DAVE, DUOL, CPAY & APTV in Spotlight
Here, we have discussed four business services companies scheduled to report their second-quarter 2026 numbers in the upcoming week.
Our quantitative model suggests that the combination of the following two key elements — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better — increases the odds of a positive earnings surprise. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Dave: This financial products and services provider is expected to report second-quarter 2026 results on Aug. 5, after market close. It currently has an Earnings ESP of 1.42% and a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $169.8 million, indicating a year-over-year jump of 28.9%. An uptick in monthly transacting members and expansion in average revenue per user are catalysts likely to have fueled the top line. It is bolstered by rising member conversion and retention, and an upsurge in ExtraCash originations driven by CashAI v5.5.
The Zacks Consensus Estimate for quarterly earnings is set at $3.69 per share, suggesting an increase of 17.5% from the year-ago quarter. Prudent marketing, strong credit performance facilitated by CashAI v5.5, and continued share repurchases are anticipated to have improved the bottom line.
Dave Inc. Price and EPS Surprise
Dave Inc. price-eps-surprise | Dave Inc. Quote
Duolingo: The company operates as a mobile learning platform offering 250 language courses. It is expected to report second-quarter 2026 results on Aug. 5, after market close. DUOL has an Earnings ESP of +9.02% and a Zacks Rank #2.
The Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $297.4 million, indicating year-over-year growth of 17.9%. We expect the top line to have improved on the back of expanding daily active users, product enhancements led by AI and higher user retention.
The consensus estimate for earnings is pegged at 61 cents per share, indicating a 33% year-over-year plunge. Hefty investments in AI content generation and infrastructure and margin contraction caused by rising operating expenses are factors likely to have affected the bottom line.
Duolingo, Inc. Price and EPS Surprise
Duolingo, Inc. price-eps-surprise | Duolingo, Inc. Quote
Corpay: This payments company supporting consumers to manage and pay expenses is expected to report second-quarter 2026 results on Aug. 5, after market close. It currently has an Earnings ESP of 1.55% and a Zacks Rank #3.
The Zacks Consensus Estimate for revenues in the to-be-reported quarter is kept at $1.3 billion, suggesting 18.4% growth from the year-ago quarter. The top-line increase is likely to have been attributed to higher cross-border and payables spend, coupled with growth in Vehicle Payments, driven by higher fuel prices.
The Zacks Consensus Estimate for quarterly earnings is set at $6.59 per share, indicating 28.5% year-over-year growth. This strong bottom-line performance is anticipated to have been driven by active share repurchases and investment-backed EBITDA expansion.
Corpay, Inc. Price and EPS Surprise
Corpay, Inc. price-eps-surprise | Corpay, Inc. Quote
Aptiv: The company offers hardware and software solutions to support automotive and other industries globally. It is expected to report second-quarter 2026 results on Aug. 4, before market open. APTV has an Earnings ESP of +1.81% and a Zacks Rank #3.
The Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $3.3 billion. The metric is anticipated to plunge 36.3% year over year. The detriment is likely to have stemmed from supply-chain headwinds, unfavorable customer mix and program cancellations by local Chinese Original Equipment Manufacturers.
The consensus estimate for earnings is pinned at $1.42 per share, indicating a 33% year-over-year decline. The bottom line is anticipated to have been burdened by margin contraction due to rising commodity input costs and increasing taxes, fueled by annualized stranded costs.
Aptiv PLC Price and EPS Surprise
Aptiv PLC price-eps-surprise | Aptiv PLC Quote
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Dave Inc. (DAVE): Free Stock Analysis Report
Aptiv PLC (APTV): Free Stock Analysis Report
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Corpay, Inc. (CPAY): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).