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Corporate earnings are expanding at a pace that significantly outstrips the broader economy, a divergence that has fueled persistent bubble concerns among investors.
The case for caution rests on the premise that such outsized growth is unsustainable, yet the risk is that current valuations may already be pricing in a normalization that has not yet arrived.
What complicates this narrative is the specific trajectory laid out by major institutional strategists, who argue that while the pace will decelerate, it will not collapse.
A team at Goldman Sachs, led by strategist Ben Snider, outlined this view in a recent note. The bank projects that S&P 500 earnings per share growth will slow to 11% in 2027 and remain at that level through 2028.
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