Earnings at US S&P 500 companies rose approximately 52% year on year in the April–June 2026 quarter, marking a significant expansion. AI investment and tariff refunds boosted earnings, while personal consumption also showed signs of slowing.
According to data released by the US Department of Commerce’s Bureau of Economic Analysis (BEA), corporate profits after inventory valuation and capital consumption adjustments increased by approximately $400.9 billion from the previous quarter in the second quarter, while GDP growth slowed to an annualized 1.5%. Personal consumption accelerated, while growth in government spending, business fixed investment and exports slowed. The current contribution to growth reflects a range of factors.
Listed companies’ earnings expanded further, with FactSet’s estimates indicating that second-quarter earnings per share are expected to rise approximately 52% year on year. Investment gains at Alphabet and Amazon made a significant contribution. Amazon recorded substantial pretax non-operating income, primarily from AI-related investments.
Earnings at S&P 500 companies excluding the M7 are also expected to grow approximately 31.8%, marking strong growth, and several companies raised their full-year outlooks. Retail giant Walmart raised its full-year earnings outlook, despite slower growth in same-store sales.
Tariff refunds have also been cited as a factor supporting earnings, with companies receiving refunds using them to absorb costs or fund price reductions. Continued investment in AI infrastructure is also supporting demand for related companies.