The S&P 500's EPS growth rate has expanded to 12.1%, marking five consecutive quarters of double-digit growth.

MissedAirdropBro · 2026-02-13T02:14:52+00:00

The S&P 500's EPS growth rate expanded by 12.1% in Q4, driven by positive surprises. FactSet's analysis reveals multi-faceted growth through sector performance and AI's rising role in earnings, indicating a supportive outlook for 2026.

MissedAirdropBro

2026-02-13 02:14:52

Abstract generation in progress

The EPS growth rate of the S&P 500 achieved a 12.1% expansion in the fourth quarter, with positive EPS surprises driving the overall market. According to FactSet’s analysis, this pace of growth marks five consecutive quarters of double-digit increases, serving as an important indicator of the market’s resilience.

Insights into the Multifaceted Growth Revealed by FactSet Analysis

John Butters, senior earnings analyst at FactSet, examined the earnings growth not only through simple figures but from multiple perspectives. He conducted a comprehensive analysis of sector performance, comparisons of domestic and international exposure, and trends in net profit margins. Such detailed analysis is crucial for understanding the market structure behind EPS growth rates. Recognizing differences in sector contributions and the impact of global economic trends will inform future investment decisions.

Rapid Expansion of AI-Related Discussions in Corporate Earnings Calls

During the fourth quarter earnings calls, mentions of artificial intelligence increased remarkably. Corporate management and analysts are shifting their focus toward AI-related technologies and applications, highlighting AI’s growing importance as a new growth engine supporting EPS growth. This trend is not merely an industry fad but indicates a structural change that could influence future corporate earnings.

Earnings Outlook Beyond 2026

The analyst community has also compiled forecasts for EPS growth rates beyond 2026, suggesting ongoing expectations for growth in the market’s future. Given recent market volatility, such optimistic projections are likely to bolster investor confidence.

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