Investing.com -- Companies that fall short of earnings expectations this quarter are facing their steepest one-day stock underperformance since 2016, according to a note from JPMorgan.

“Companies that are missing estimates are being penalized heavily,” JPMorgan analysts wrote, citing the firm’s earnings tracker.

The note comes during one of the busiest weeks of the first-quarter reporting season, with nearly two-thirds of U.S. companies and about half of European firms having reported.

U.S. earnings growth is coming in stronger than expected at 14% year over year, with 77% of S&P 500 companies beating earnings-per-share (EPS) estimates.

Still, JPMorgan cautioned that “the bulk of the earnings delivery is driven only by a few companies.” At the median level, U.S. EPS growth drops to 6%.

In Europe, JPMorgan says earnings are down 3% year over year, with 55% of Stoxx 600 companies beating expectations. Median EPS growth in the region is 5%, suggesting a narrowing performance gap with the U.S.

Sectors driving U.S. earnings are said to include healthcare, communication services, and technology, while energy, materials, discretionary, staples, and real estate are seeing negative EPS growth.

In Europe, healthcare and tech are also outperforming, while energy and autos lag, according to JPMorgan.

Despite the generally positive earnings surprise, JPMorgan noted that “the proportion of companies revising guidance higher is subdued this quarter.”

The bank adds that EPS revisions have continued to weaken, and there has been a notable uptick in profit warnings. “Most of these companies have cited tariff-driven uncertainty as the primary reason for disappointing,” the analysts said.