Homrich & Berg says S&P 500 earnings jump 33.2% as AI capex boost broadens beyond tech
SPY•Risks flagged by the report
Key risks centered on oil price swings tied to the Iran war, plus potential peak AI capex that could undermine elevated tech expectations.
Broad S&P 500 earnings surge in 2Q
Homrich & Berg analysis flagged a broad earnings surge as elevated capex spread beyond tech, lifting S&P 500 EPS 33.2% YoY in 2Q.
Revenue growth drove results, with S&P 500 topline up 15.6% versus a 12.1% forecast; net margins reached 15.6%.
Breadth expands beyond the Magnificent 7
Earnings strength broadened outside the Magnificent 7, with the S&P 500 ex-mag-7 up 32.4%; the growth gap narrowed to the tightest since 1Q23.
The report said earnings breadth at 82.2% is nearing historical peak zones, while forward operating margin forecasts jumped to 21.2% from 18.8%.
