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S&P 500 EPS growth above 20% is rare. Why 2027 may be at risk
['Senad Karaahmetovic', 'Tue', 'August At Am Bst', 'Min Read']
Yahoo Finance - Business Finance, Stock Market, Quotes, News
Investing.com -- S&P 500 companies are on course for 32% year-on-year EPS growth in the second quarter of 2026, following a 30% jump in Q1.
With nearly 90% of S&P 500 results reported for the June quarter, BofA's data show EPS rising 30% year-on-year excluding investment gains at Alphabet and Amazon, with a 76% EPS beat rate, the strongest since 2021.
JPMorgan noted, however, that private-company stake valuations are boosting reported 2026 EPS by roughly $18 based on first-half marks; stripped of that contribution, normalised EPS would be $347, up approximately 28% year-over-year.
The bank projects consensus AI capital spending of roughly $900 billion by year-end 2026, up 85% year-over-year, and topping $1.2 trillion by end of 2027.
At least seven brokerages now share JPMorgan's 8,000 year-end target for the S&P 500, according to Investing.com's market context data, reflecting how thoroughly the earnings upgrade cycle has shifted institutional sentiment.