Beyond the AI boom: A broader earnings story

The second quarter 2026 earnings season has once again highlighted the role of artificial intelligence as a driver of corporate growth. However, beyond this phenomenon, the results reflect a broader and more diversified evolution of earnings, both in the United States and in Europe.

In the United States, S&P 500 earnings growth remains at historically elevated levels, while in Europe STOXX 600 earnings are recording their strongest earnings season in recent years. Beyond the magnitude of the figures, a notable development is the broadening of earnings generation across a greater number of sectors and regions, as well as the improvement in corporate profitability.

Technology continues to lead growth, but the artificial intelligence story is evolving. After several years marked by significant infrastructure investment, recent results suggest that more visible economic returns are beginning to materialize, with increasing contributions from areas such as cloud services, software, cybersecurity, and digital infrastructure.

Another relevant aspect is the growing breadth of earnings growth. In the United States, most S&P 500 sectors are reporting earnings gains, while in Europe a wide range of industries is also making a positive contribution. This diversification is often a characteristic associated with stronger and more sustainable earnings cycles.

In addition, improving corporate margins and the constructive tone of companies support the view that the earnings recovery is underpinned by a broader improvement in corporate fundamentals. In an environment supported by favourable macroeconomic conditions, the current earnings cycle appears to be driven by a combination of technological leadership, improving profitability, and broader sector participation.

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