S&P 500 Q2 earnings growth forecast jumps to 47% as AI boom accelerates
FactSet revisions imply an unusually strong Q2 earnings season for the S&P 500, with growth expectations lifted to ~47% y/y (still >28% ex-Alphabet and Amazon), reinforcing the equity bull narrative and supporting index-level risk appetite. Strength is concentrated in AI-linked mega-cap tech and semiconductors, though part of the beat reflects one-time equity gains and longer-dated earnings revisions have softened, tempering durability concerns.
AI Insight · NCSISP5002USD/USDTAI Insight
▲ Bullish
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The S&P 500’s forecast for second-quarter earnings growth has been raised to 47% from about 20% at the start of the reporting season, and it would still be above 28% even excluding two stocks. That would mark a seventh straight quarter of double-digit earnings growth. Unlike past spikes tied largely to post-crisis rebounds in 2021 and 2010, the current upswing is described as more internally driven.