Barclays Raises S&P 500 Year-End Target Amid Strong Tech Earnings
Barclays has raised its year-end target for the S&P 500 to 7,950 from 7,800 following a strong earnings season led by technology companies. The bank attributed this improvement to durable AI-driven growth and consistent beat-and-raise performance in tech sectors. Big Tech firms reported second-quarter earnings that grew 35% year-over-year, up from 30% the previous quarter, while other parts of the tech sector saw an even sharper increase at 88%. Barclays also raised its S&P 500 earnings estimates for both 2026 and 2027. The firm highlighted that hyperscaler capital expenditures are expected to exceed $1.1 trillion in 2027, driven largely by Google, Amazon, and Meta. Despite macroeconomic challenges, Barclays believes the strong industrial backdrop and AI demand will sustain earnings momentum into next year.
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Topics: AI demand Barclays earnings estimates S&P 500 technology sector