Earnings Growth Could Propel S&P 500 to New Highs in 2026, Says RBC Strategist
Lori Calvasina, head of U.S. equity strategy at RBC Capital Markets, projects an 11% upside for the S&P 500 to 7,750 within the next year, driven by sustained corporate earnings growth. Analysts have notably raised Q4 2025 earnings expectations—a rare upward revision according to FactSet's John Butters.
The market's performance hinges on earnings rather than multiple expansion, Calvasina emphasized. This outlook contrasts with warnings about the sustainability of U.S. equities' decade-long bull run, particularly absent significant rate cuts.