Strong corporate profits are reshaping expectations for the S&P 500 as a powerful earnings season continues to gain momentum heading deeper into 2026.
Analysts are tracking year-over-year S&P 500 earnings growth of 23.2% for the second quarter, according to FactSet data, well above historical norms.
That figure comfortably exceeds the five-year average growth rate of 16.4% and the longer-term 10-year average of just 10.3%.
If the estimate holds through the remainder of reporting season, it would mark the second consecutive quarter of earnings growth above 20% for the index.
It would also extend a remarkable streak to seven straight quarters of double-digit earnings growth for S&P 500 companies.
Amazon (AMZN) delivered one of the most eye-catching results of the season, posting its biggest single-day stock gain in more than a decade with a jump of 15.3%.
The surge came on the back of a breakout earnings report that included the company’s fastest revenue growth in five years, with sales climbing 20% to $167.7 billion.
Amazon Web Services stood out as a particular highlight, reporting revenue of $42.2 billion, a 37% increase that marked its fastest growth rate in 18 quarters.
The strong AWS performance signals that demand for cloud infrastructure and artificial intelligence services continues to accelerate well beyond earlier projections.
Amazon’s outsized market reaction echoed the reception Microsoft received just a day earlier, when its stock soared to its best single-day gain in nearly 18 years.
Microsoft’s rally was driven by investor optimism that the company’s substantial AI investments are beginning to translate into meaningfully higher profits.
The back-to-back surges from two of the largest companies in the index underscore how AI-linked revenue growth is increasingly moving broader market benchmarks.
With heavyweights like Amazon and Microsoft delivering well above expectations, the overall earnings picture for the S&P 500 looks notably stronger than analysts had initially anticipated entering the season.
