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u/coinfankingonReddit3d ago
'Firing on all cylinders': Wall Street strategists expect a strong quarter of earnings growth.
Corporate America is reeling in the profits despite sticky inflation and geopolitical jitters.
Big banks have kicked off earnings season with robust results, contributing to a 12% year-over-year earnings growth forecast for the S&P 500 index.
Tom Essaye, founder of Sevens Report Research, told Yahoo Finance that "corporate America is firing on all cylinders." He notes that S&P 500 earnings per share have climbed from roughly $235 in 2024 to projected estimates of $315 for 2026.
Whether it's AI or other tech, the strong quarter of earnings growth has been fueled by solid margins, per Essaye. Companies are successfully navigating higher energy and transport costs without letting them dent the bottom line. Despite inflation, customer bases are "broadly good."
"If anything, there's upward risk, and that tells you that companies are executing well in an environment where fear is high, but the actual reality is quite good," Essaye said.
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Analysis Summary
Wall Street analysts are forecasting 12% year-over-year earnings growth for the S&P 500 in 2026, with big banks posting strong results to kick off earnings season. Corporate profit margins have held steady despite inflation and higher energy costs, though the strength is heavily concentrated in tech and semiconductors—other sectors like consumer goods are showing weakness and negative earnings revisions. The real question investors are watching is whether Big Tech can actually turn massive AI spending into profits, which will determine whether this earnings cycle sustains through the second half of 2026.
Claims Analysis (4)
“Big banks have kicked off earnings season with robust results, contributing to a 12% year-over-year earnings growth forecast for the S&P 500 index.”
Yahoo Finance reports this directly. Independent search confirms JPMorgan raised 2026 EPS to $330 (vs prior $315), corroborating strong earnings momentum.
“S&P 500 earnings per share have climbed from roughly $235 in 2024 to projected estimates of $315 for 2026.”
Tom Essaye's cited figures are reasonable but JPMorgan's independent research shows $330 for 2026 (higher than $315 cited here), suggesting the $315 figure may be slightly outdated or represent a different analyst consensus point.
“Companies are successfully navigating higher energy and transport costs without letting them dent the bottom line.”
Supported by the article's discussion of solid margins and robust earnings results. However, the article also notes sector divergence—consumer sectors showing negative revisions—so the claim is true for overall S&P 500 but masks weakness in specific sectors.
“Tech and semiconductors must 'beat and raise' to keep the index moving, as results from other sectors are expected to be mixed.”
Citi's Scott Chronert is directly quoted in the article making this exact point. Independent search confirms sector divergence and tech leadership narrative.
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