Full-year profit estimates for the S&P 500 are on the rise, underpinned by the artificial intelligence boom and stronger-than-expected first-half earnings.
Almost all companies in the S&P 500 have reported earnings, with 86% of them blowing past analyst expectations, the most since 2021, Bloomberg Intelligence data shows.
The benchmark’s projected earnings growth stands at 32% this year, according to Wall Street data compiled by Bloomberg, versus the 24% gain that was expected before the second-quarter reporting season, driven by upgrades for consumer discretionary and telecommunications companies.
“The massive AI build-out is the obvious catalyst for the outsized earnings growth we’ve seen in 2026,” BI analyst Nathaniel Welnhofer said, adding that the increase in the second quarter was tracking higher than the first quarter’s pace, “which was unprecedented on its own.”
Second-quarter results stood out because analysts had questioned whether companies would be able to meet heightened expectations after what had already been a strong start to the year.