S&P 500 Earnings Surge as 75% of Companies Beat Profit Forecasts
The latest earnings season has begun with a robust start, as 75% of S&P 500 companies surpass profit forecasts. Analysts at Morgan Stanley now predict a wave of strong corporate results, with many firms set to update their financial outlook for 2026 in the coming weeks.
Morgan Stanley's team has flagged 13 specific stocks that could see sharp gains if their earnings reports exceed expectations. While the full list remains undisclosed, scattered data points to notable performers like Talanx, which recently raised its profit target to €2.7 billion. Apple is also positioned for above-average growth in 2026, and Atlassian anticipates 22% revenue growth alongside a 26% operating margin.
The broader stock market reflects this optimism. Analysts project an above-average rate of earnings surprises across the S&P 500. Over 5% of companies in the index are expected to outperform estimates, reinforcing confidence in corporate profitability.
Beyond immediate results, many firms will provide fresh guidance for 2026. These updates could further shape investor expectations and market trends in the months ahead.
The current earnings season has already shown promising signs, with three-quarters of S&P 500 firms beating forecasts. Morgan Stanley's selected stocks and broader market trends suggest continued strength in corporate performance. Updated 2026 guidance from major companies will likely influence future investment decisions.
