J.P.Morgan raises end-2026 S&P 500 target to 7,800 on AI-led earnings strength

The brokerage lifted its year-end 2026 target from 7,600 and raised earnings-per-share forecasts to $350 for 2026 and $390 for 2027, while warning the market's advance may be uneven.

Summary

J.P.Morgan raised its year-end 2026 S&P 500 target to 7,800 from 7,600, citing strong earnings momentum driven by the AI-led investment boom and resilient economic conditions. The firm also increased its S&P 500 earnings-per-share forecast to $350 for 2026 and expects $390 for 2027. Strategists said the path higher is likely to be non-linear as companies face a higher bar heading into second-quarter results, while rising equity issuance and the possibility of tighter monetary policy could pressure valuations.

Terms & Concepts
  • S&P 500: A benchmark index tracking 500 large U.S. listed companies.
  • earnings-per-share: Company profit allocated to each share.
  • equity issuance: Sale of new shares to investors.