The R2000 ended 4Q25 earnings season on a strong note, holding above 20% growth with ‘26E estimates tracking the best in four years. Small-caps notoriously start the year with substantial forward year overestimation with a typical year showing a steady downward progression in earnings estimates. Roughly half of those downward revisions normally occur during the first quarter as prior year results are reported, and full-year guidance adjusted. What’s notable this year is that forward estimates started a little stronger than usual and downward revisions have been more tempered than usual arguing the R2000 can put up high double-digit earnings growth this year. Large-cap estimates, which tend to be more accurate (particularly sales), are up 3.4%, rising 2.3% in March alone. Much of this earnings optimism requires looking past the Iran War, oil shock and other Hormuz Strait closure disruptions. But that will become harder to do if current conditions persist into May as mid-term election rhetoric intensifies.