Excluding Alphabet and Amazon, S&P 500 earnings growth remains robust at 32%, surpassing historical averages despite valuation concerns.
S&P 500 companies reported aggregate earnings 29.2% above analyst estimates, marking the largest beat on record since 2008. The surge exceeds the historical average by more than four times, driven by broad-based growth across sectors.
Excluding Alphabet and Amazon, earnings growth still stands at 32%, well above long-term norms. Semiconductor earnings jumped 135%, fueled by AI demand, though elevated valuations leave little margin for error.
Corporate profitability reached new highs, with AI and data-center investments translating into accelerated growth. The trend underscores earnings as a key driver for stock prices amid lofty market expectations.