GAAP earnings don’t accurately measure profits, largely because companies can manipulate accounting rules to “fudge” the numbers. For far too long, investors have turned to non-GAAP, whisper numbers, or Street Earnings[1] to get additional insight into a company’s true fundamentals. But, those numbers are, in fact, also misleading.
Rather than rely on flawed GAAP or Street Earnings, we leverage our Robo-Analyst, a best-in-class AI Agent for investing, to scour the footnotes and MD&A of financial filings to calculate Core Earnings, a proven superior measure of earnings. In this report, we’ll show:
- the prevalence and magnitude of understated GAAP Earnings in the S&P 500,
- that Street Earnings (and GAAP earnings) are flawed and not adjusted as promised, and
- the five S&P 500 companies with understated Street Earnings most likely to beat 2Q25 earnings.