So far, with 88% of S&P 500 companies having reported their Q2 earnings, year-over-year earnings growth has reached an astonishing 50.4%. To put that number into perspective, analysts had previously expected earnings growth of roughly 23%.
That means actual earnings growth is now more than twice the original estimate. If this trend holds, the S&P 500 will record its second consecutive quarter of earnings growth above 20%, while also marking the seventh consecutive quarter of double-digit earnings growth.
The last time earnings growth was this powerful was in Q2 2021, when the U.S. economy was emerging from the COVID-19 pandemic and massive fiscal stimulus was still flowing through the economy.
But there is one major difference this time.
We may be witnessing one of the largest technological investment waves in U.S. history — driven primarily by artificial intelligence. And this time, the AI boom isn't just showing up in stock prices. It is starting to show up in corporate earnings. The numbers are honestly incredible.
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@RezaMacroEdge
MarketWatch
Stock market's rally is supported by strongest earnings growth in five years
The S&P 500's rally toward a record isn't just about the outlook for interest rates or the Iran war. Strong earnings growth is playing a big part.
With 88% of S&P 500 companies having now reported results for the latest quarter, the year-over-year earnings…
August 9, 2026 45
