Goldman Sachs Raises S&P 500 Year-End Target to 8,000 on Strong Earnings Outlook

TLDR

• Goldman Sachs raised its S&P 500 year-end target to 8,000, up from 7,600
• The new target is 6.4% above the index’s last close of 7,519.12
• Earnings growth is cited as the main driver of the S&P 500’s returns in 2026
• Goldman raised its EPS forecast to $340 for 2026 (24% growth) and $385 for 2027
• AI infrastructure stocks are expected to drive roughly half of index earnings growth this year

Goldman Sachs raised its 2026 year-end target for the S&P 500 to 8,000, up from its previous forecast of 7,600. The bank cited continued strength in corporate earnings as the key reason behind the upgrade.

The new target sits 6.4% above the index’s last close of 7,519.12, recorded on Tuesday, May 26. The S&P 500 has already gained over 9% year to date.

Earnings Growth Driving the Market

Goldman Sachs said earnings growth has powered all of the S&P 500’s returns so far this year. The bank expects that trend to continue through the rest of 2026.

The firm also updated its earnings per share forecasts. It now expects S&P 500 EPS of $340 in 2026, which would represent 24% year-on-year growth. For 2027, it projects EPS of $385, a further 13% increase.

Goldman pointed out that earnings estimates are currently rising faster than stock prices. However, semiconductor stocks tied to AI infrastructure have already moved ahead of their forward earnings estimates.

The bank acknowledged risks on the horizon. Weak consumer spending and elevated costs could weigh on results. Despite that, Goldman believes strong AI investment will offset those pressures.

AI Stocks in Focus

Goldman Sachs said AI infrastructure companies are expected to account for roughly half of the S&P 500’s earnings growth in 2026. That puts a lot of weight on the technology sector to deliver.

On Tuesday, Micron Technology surged 19%, briefly pushing its market value above $1 trillion. The move came after analysts at UBS pointed to more than 100% upside potential for the stock, driven by long-term supply agreements.

The S&P 500 hit a record high on the same day, led by technology stocks. Investors were also watching news around a possible U.S.-Iran deal, which could ease geopolitical tensions.

Goldman is not alone in its bullish view. UBS Global Wealth Management also raised its S&P 500 target last week. UBS pointed to strong AI-driven earnings as a potential buffer against inflation and supply risks linked to the Iran conflict.

Both banks see AI spending as a central pillar supporting the market. The question going forward is whether corporate earnings can keep pace with investor expectations.

Goldman’s upgrade reflects confidence that the current earnings cycle still has room to run. Whether the index reaches 8,000 by year-end will depend heavily on whether AI-driven profit growth continues to deliver.

The post Goldman Sachs Raises S&P 500 Year-End Target to 8,000 on Strong Earnings Outlook appeared first on CoinCentral.