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S&P 500 earnings are expected to rise 35% in 2026, the fastest pace since 2021, according to analysts tracked by LSEG IBES. Reuters reports that the same group of analysts expects that growth rate to drop to 15% in 2027.
The deceleration follows a period of exceptional corporate performance. Department of Commerce reported that total U.S.
corporate profits reached a $4.7 trillion annual rate in the second quarter, a 20.8% increase from the year prior.
Within that figure, manufacturing profits climbed to $1.05 trillion, up from $812 billion in the previous quarter. The source of this surge includes factories supplying chips, servers, and power gear for data centers.
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