Citi said in a latest report on Aug. 14 that it remains bullish on the U.S. equity earnings cycle, raising its 2026 S&P 500 EPS forecast to $365 from $350 while keeping its year-end index target at 8,100. Citi's equity strategy team led by Scott Chronert said second-quarter results showed further upside for revenue and profit margins, pointing to stronger corporate earnings resilience than previously expected. The call comes as the S&P 500 trades near historic highs after weaker-than-expected July PPI (U.S. producer inflation gauge) eased market concern over pressure on Federal Reserve policy. Citi argued the rally is not being driven only by valuation expansion, with upward earnings revisions providing fresh support for the index. It added that AI remains the key variable for reaching 8,100, because continued revenue delivery from AI infrastructure, semiconductors, cloud services and the power supply chain would make investors more willing to accept elevated valuations. At the same time, the bank said the rally has room to broaden, with improving earnings across more sectors helping the market rely less on a small group of technology giants.