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.
UCapital Asset Management LLP or group companies may have commercial relationships with the companies mentioned. This content is not financial advice.
Sign up for free to ask the AI about this article.
Growth, inflation and rates across the major economies, with the impact on your business.