Citi raises its 2026 S&P 500 earnings forecast to $350 and sets a preliminary 2027 estimate at $400 amid AI spending momentum.
Citi strategist Scott Chronert increased his year-end 2026 S&P 500 target to 8,100 from 7,700, citing stronger-than-expected earnings driven by artificial intelligence investments. The firm now projects 2026 earnings at $350 per share, up from prior estimates, and introduced a preliminary 2027 forecast of $400.
First-quarter earnings results reinforced the bullish outlook, with AI tailwinds accelerating growth across multiple sectors. Chronert noted traditional economic models underestimate the breadth of the AI spending cycle, which is reshaping corporate profitability.
The revised targets reflect confidence in sustained momentum through 2026, supported by robust Q1 performance and ongoing AI adoption.