Goldman Sachs upgraded its 12-month price target for the S&P 500 index from 5,600 to 6,300, driven by stronger-than-expected corporate earnings heading into the third quarter and robust demand for artificial intelligence technologies.
The revision, outlined in a report led by U.S. equity strategist David Kostin, reflects optimism around earnings-per-share (EPS) growth and margin expansion, particularly in key sectors like technology and healthcare.
The S&P 500, which tracks the largest 500 U.S. corporations through the SPDR S&P 500 ETF Trust (NYSE:SPY), is currently trading less than 1% below its all-time high.
S&P 500 Earnings Forecasts Upwardly Revised
Goldman Sachs now projects the S&P 500’s earnings per share to rise to $268 in 2025, representing an 11% year-over-year increase.
“The primary driver of the upward revision to our 2025 EPS estimate is greater margin expansion,” analysts wrote.
This is up from the bank’s previous estimate of $256, which forecasted just 6% growth. For 2026, the investment bank forecasts further EPS growth to $288, or 7%, continuing a healthy upward trajectory.
For the current year, Goldman Sachs maintains its full-year EPS forecast of $241 for the S&P 500, reflecting an 8% year-over-year growth, consistent with prior guidance.
Year
Goldman Sachs’ S&P 500 EPS Forecast
Growth Rate
2024
$241
+8%
2025
$268
+11%
2026
$288
+7%
Goldman Sachs' earnings forecasts are supported by steady macroeconomic growth expectations.
The firm's economists predict that U.S. GDP will grow by 2.3% in 2025, followed by ...
