Analysts at US investment bank Goldman Sachs have significantly upgraded their forecast for the S&P 500 index to 8,000 points by the end of 2026, up from their previous expectation of 7,600 points. According to a research note from the financial institution, reported by Reuters, the revision is driven by the continued strong growth in corporate earnings among the largest American companies. Notably, Goldman Sachs’ updated target reflects about a 6.4% increase over the previous day's market close, signaling expectations for further gains in the US stock market.
Higher corporate profits have been the primary driver of overall returns for the S&P 500 index since the start of the year, the bank’s strategists emphasized. Moreover, they expect this momentum to continue in the coming months. Consequently, analysts have also raised their earnings per share forecasts for the index constituents. According to the new estimates, earnings per share are projected to reach $340 in 2026, indicating a robust year-on-year pick-up of 24%. In 2027, this figure is forecast to increase by another 13% to approximately $385.
