A research team at Goldman Sachs, spearheaded by Ben Snider, released a recent analysis addressing the disparity between corporate profitability and broader economic indicators. While earnings are currently expanding at a pace significantly outstripping general economic growth, the bank’s strategists do not anticipate this trend to continue indefinitely.
In their report, the analysts projected that earnings per share growth for the S&P 500 will moderate to 11% during the years 2027 and 2028. This forecast suggests a noticeable deceleration in profitability gains as the market moves further into the decade, countering recent narratives that have fueled concerns about an imminent bubble driven by sustained hyper-growth.
Goldman calling for a slowdown always makes me nervous. Is this warning or opportunity?
I wonder how tariffs and geopolitical instability will factor into these projections?
11% is still robust. Are we sure this counts as a deceleration or just normalization?
Finally, some reality checks from Wall Street. The hyper-growth narrative was getting exhausting.