Barclays raised its year-end 2026 S&P 500 price target to 7,950 from 7,800.
Strategists cited a robust second-quarter earnings season led by the technology sector. The bank increased its earnings-per-share (EPS) estimates for both 2026 and 2027. The updated forecast projects EPS growth of 30.8% for 2026.
Data shows 86.2% of companies surpassed consensus estimates during the recent quarter. Strategists observed that markets are heavily penalizing earnings misses despite high beat rates.
Barclays downgraded the Utilities sector to Neutral from Positive, citing regulatory challenges.