The bank forecasts 24% earnings growth for 2026, with AI infrastructure driving half of the increase.
Goldman Sachs increased its S&P 500 year-end target to 8,000 from 7,600, reflecting a 6% upside from current levels. The revision follows a projected 24% earnings growth in 2026, nearly half attributed to AI infrastructure beneficiaries.
First-quarter blended earnings grew 28.4%, the strongest in five years, with 84% of firms beating estimates. The index has risen 9% year-to-date, supported by robust earnings revisions among top performers.
The bank noted potential headwinds, including moderating momentum and weaker historical performance ahead of midterm elections.