Barclays raises S&P 500 year-end target to 7,950
Barclays increased its S&P 500 year-end forecast to 7,950 following strong earnings, citing technology gains and AI investment. The firm also raised its 2026 earnings-per-share projection for the index.
Barclays raised its year-end target for the S&P 500 index from 7,800 to 7,950. This decision follows a robust second-quarter earnings season where technology companies led performance. According to LSEG data cited by Reuters, 86% of the 492 S&P 500 companies that reported results beat analyst estimates. Barclays projects the index will reach 8,800 by the end of 2027, noting confidence in corporate earnings despite potential market risks. The brokerage raised its 2026 earnings-per-share forecast for the S&P 500 to $365 from $337. While acknowledging the index gained 12.1% this year, Barclays flagged concerns regarding the sustainability of AI spending, inflation, and a more hawkish interest-rate outlook.
