As we gear up for the upcoming first-quarter earnings season, investors are eager to gauge the state of the U.S. economy. Analysts have significantly adjusted their earnings estimates, a trend highlighted in a recent FactSet analysis. The number of S&P 500 companies issuing lower-than-expected first-quarter outlooks has been increasing, raising concerns amidst market uncertainties driven by tariffs. The new earnings season kicks off next week, with major banks expected to report their results. According to FactSet's Senior Earnings Analyst John Butters, the median estimate for earnings per share for S&P 500 companies dropped from $62.89 to $60.23, a 4.2% decline during the quarter, surpassing declines seen in recent years but aligning with the 20-year average. Full-year estimates also saw a dip, decreasing by 1.6% to $269.67 per share. Notably, the financial sector was the only one to witness an increase in full-year EPS estimates during the first quarter, as reported by FactSet.