86% of companies have topped forecasts this earnings season, with blended growth more than double what analysts expected.
Corporate America is turning in one of its strongest earnings seasons in years. With 88% of S&P 500 companies having reported second-quarter 2026 results, 86% have beaten Wall Street's estimates, according to data compiled by FactSet and cited in an August 9 Forbes analysis. Blended earnings growth for the index has come in at 50.4% year-over-year — more than double the 23.3% growth analysts had projected heading into the quarter.
The numbers behind the rally
- S&P 500 blended earnings growth: 50.4% year-over-year, versus a 23.3% forecast
- The S&P 500 climbed 3.6% to fresh record highs this week
- The so-called Magnificent Seven megacap stocks gained 4.7%
- Small-cap stocks rose 3.5%
- Full-year 2026 earnings growth is now projected at 30.0%, with 13.6% expected in 2027
Who's driving the growth
Chipmakers and AI infrastructure companies — including Nvidia, Micron Technology and Applied Materials — continue to post outsized gains tied to data center and AI spending. Megacap names Microsoft, Meta, Amazon, Apple, Alphabet and Tesla also factored heavily into results, alongside strength in Healthcare, Communication Services and Energy, the three sectors leading both earnings and revenue growth this quarter.
What's next for markets
Investors are now watching Wednesday's Consumer Price Index report, expected to show core inflation cooling to about 2.5% year-over-year — the lowest reading since March 2021. Softer recent jobs data combined with moderating inflation could reduce the odds of a Federal Reserve rate hike in September. Recession-probability estimates for 2026 remain below 10%, according to the Forbes analysis.
Not investment advice
This article is for informational purposes only and isn't a recommendation to buy or sell any security. Talk to a licensed financial advisor before making investment decisions.
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