Wall Street Expects the S&P 500's Earnings Growth Rate to at Least Get Cut in Half in 2027. Should Investors Be Worried?
S&P 500 earnings are poised to rise this year at the fastest rate since 2021, when earnings soared after recovering from the pandemic.
Overview
The S&P 500 (SNPINDEX: ^GSPC) is preparing to deliver its best year of earnings growth since 2021, and far above the norm.
With just three months remaining in 2026, Wall Street analysts, on average, expect the broader benchmark to grow earnings from about 32% (FactSet) to 35% (LSEG) on a year-over-year basis.
Details
The fantastic year can be attributed to strong growth from hyperscalers, driven by investments that have further built out their artificial intelligence businesses, whether in the cloud or in enhancing other businesses, such as advertising.
Source
Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.