Full-year 2026 earnings growth projections for the S&P 500 have surged to 32%, up from 24% before the second-quarter reporting season. This revision follows a remarkable Q2 season where 86% of companies in the index beat analyst expectations, the highest rate since 2021. Massive investments in artificial intelligence are driving this performance, with projected capital expenditure exceeding $754 billion for major hyperscalers in 2026. Major investment banks have revised their targets upward, with Goldman Sachs and JPMorgan now expecting the S&P 500 to reach 8,000 points, while HSBC targets 8,100. The communication services sector shows the most significant revision, with projected earnings growth of 51%.
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