Goldman Sachs forecasts S&P 500 to reach 7,600 by 2026

Goldman Sachs strategists expect the S&P 500 to climb to 7,600 by 2026, implying roughly 10% upside from Thursday’s close, driven by strong economic growth, a weaker dollar, and rising corporate earnings.

The team, including Ben Snider, projects 12% EPS growth in 2026 and 10% in 2027. Their 2026 forecast combines 7% revenue growth with a 70-basis-point expansion in profit margins.

Analysts note that AI adoption is still in its early stages, with larger companies making more progress than smaller firms. They estimate that AI-driven productivity gains could boost S&P 500 EPS by 0.4% in 2026 and 1.5% in 2027.

Additional support for corporate profits may come from lower tariff headwinds, productivity gains, and a weaker labor market. However, strategists caution about rising input costs and pricing pressures.

Goldman Sachs is not alone in its optimism: other strategists, including those at Deutsche Bank, Morgan Stanley, RBC Capital Markets, and Oppenheimer Asset Management, also anticipate double-digit gains for the S&P 500 in the coming years.