Signs of economic growth holding up against high oil prices is adding more fuel to the earnings outlook. Corporate earnings revisions have been a key driver of the rally since the lows in late March.

The earnings growth rate for the S&P 500 is expected to top 20% every quarter in 2026 compared to the same period a year ago. While there’s some concern that revisions are being driven only by stocks leverage to the AI capex spend, earning breadth is turning higher.

The chart below shows the percent of S&P 500 industries with earnings estimates higher compared to 12 months ago and is at the highest level of this bull market cycle.