Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomePMN BusinessS&P 500 on Track for Strongest Earnings Growth Since 2021The S&P 500 Index is on track for its strongest earnings growth in five years as momentum spreads beyond artificial intelligence-fueled gains to much of corporate America.Author of the article: You can save this article by registering for free here. Or sign-in if you have an account.kir}l8k0qmfuag108etdwk8t_media_dl_1.png Bloomberg(Bloomberg) — The S&P 500 Index is on track for its strongest earnings growth in five years as momentum spreads beyond artificial intelligence-fueled gains to much of corporate America.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorAbout 93% of the benchmark’s companies have reported earnings, with 83% of them blowing past analyst expectations, Bloomberg Intelligence data shows. That’s the highest since 2021.Growth has been broad-based with the exception of healthcare. Overall, strength in energy and technology eclipsed softer consumer sentiment tied to higher oil prices from the Iran war. Communications services and consumer discretionary delivered the biggest surprises, according to data compiled by Bloomberg, with materials and industrials also beating expectations.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try again“If cyclical and non-AI sectors begin contributing while Nvidia and AI complex keep minting earnings, 2026 could look less like a late-cycle slowdown and more like a replay of the 2021 post-pandemic profit boom,” according to BI’s Nathaniel Welnhofer and Christopher Cain.For the full year, gains are expected to stay concentrated in a handful of sectors with upward revisions in energy, materials and technology expected to drive performance in the index.Most of the growth in S&P 500 earnings continues to come from Big Tech, with AI companies seen as a major reason the index could exceed 20% earnings growth in 2026, BI said.The sector, heavily weighted by Nvidia Corp., Apple Inc. and Microsoft Corp, saw a nice bump from analysts coming out of the first quarter, with more than 90% of the group beating earnings expectations for a fourth straight quarter.Nvidia’s results and outlook topped Wall Street estimates, prompting analysts to raise earnings forecasts. Adjusted profit for the world’s largest company is now expected to rise about 84% this year, up from 64% at the start of the year. Citi raised its earnings view for the year after noting Nvidia’s projection of more than $1 trillion in sales through 2027 excludes contributions from newer revenue streams such as its Groq LPX systems and Vera processors.Apple’s forecast for its third quarter topped expectations, while Alphabet Inc.’s results helped ease concerns that AI could disrupt its core search business, as the company integrates AI into its platform.EnergyThe energy sector has seen the largest upward revisions as a result of the Iran war, with earnings now projected to rise 61% this year, up from 7.6% at the start of the year.Both Exxon Mobil Corp. and Chevron Corp. reported stronger-than-expected first-quarter results as higher oil and natural gas prices outweighed production disruptions tied to the war. They are the sector’s main growth drivers alongside ConocoPhillips, making up about half of the subindex’ weight. Companies are broadly optimistic heading into next year, citing strong project backlogs, steady growth and potential for additional development, Scotiabank analyst Brandon Bingham said in a note. MaterialsMaterials stocks emerged as the index’ third driver, befitting from price increases and tighter supply. Middle East-related disruptions had a limited impact, contributing only to raw material cost pressures, Citi analyst Patrick Cunningham said, noting demand trends appear stable and companies are maintaining a cautiously constructive outlook. Coatings makers Sherwin-Williams Co., PPG Industries Inc., and Axalta Coating Systems Ltd. all expect cost inflation, though still foresee modest volume growth in the second half of the year, Cunningham said. Chemicals company Dow Inc. remains conservative with an upside bias if pricing improves further.Industrial gas producers such as Air Products and Chemicals Inc. and Linde Plc could get a boost as global helium markets tighten after a Qatar plant outage in March took about a third of supply offline, according to BI.Honorable MentionsSome of the largest upward revisions following the first quarter came in the consumer discretionary and communication, media and entertainment sectors, though the overall picture is mixed.Walt Disney Co.’s parks performance eased concerns about demand softness and Warner Bros. Discovery Inc. showed better execution in studio and streaming, Bloomberg Intelligence said. McDonald’s Corp. and Whirlpool Corp. were among the main names to warn of worsening consumer sentiment and tightening budgets during earnings calls. Both saw earnings estimates revised lower for the year. 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