Deutsche Bank raises S&P 500 earnings estimates on the back of the solid Q2 beats

Deutsche Bank raised its S&P 500 earnings forecasts for 2026 and 2027 after second-quarter results came in broadly stronger than expected. The bank said the earnings season is beating a very high bar, with 87% of companies reporting a beat and an aggregate earnings beat of 7%. It now sees S&P 500 EPS rising faster than previously expected, supported by record-high margins of 15.7%, strong sales growth, and broad sector participation. The improvement is not just being driven by megacap tech: the contribution from megacap growth and technology has fallen from 90% a year ago to 57%, suggesting a wider market rally. Deutsche Bank lifted its 2026 EPS forecast to $358 from $342 and its 2027 estimate to $420 from $390, reinforcing a constructive outlook for U.S. equities and the S&P 500.