- More than 80 per cent of S&P 500 companies beat earnings expectations this quarter
- Earnings growth is accelerating at roughly 25 per cent year-over-year, an unusually strong pace for this stage of the cycle
- Market leadership remains highly concentrated in technology, AI-driven infrastructure and energy
AI-driven earnings surge creates selective opportunities
Markets are showing an unusual combination of strength right now, with corporate earnings accelerating at a pace more commonly seen during the early stages of an economic recovery.
In this week’s Markets in Motion, Bruce Campbell highlights how more than 80 per cent of companies in the S&P 500 have beaten earnings expectations this quarter, while earnings growth is running at approximately 25 per cent year-over-year.
What makes the trend notable is where it’s happening.
Rather than broad participation across the market, the strongest growth is concentrated in sectors tied to the ongoing AI boom — particularly technology, infrastructure and energy. Much of the infrastructure spending itself is also being driven by rising demand linked to AI and data centre expansion.
For investors, that concentration matters.
While headline market performance remains strong, leadership is becoming increasingly selective, placing greater importance on identifying where earnings momentum is actually being generated.
The broader takeaway is that markets may continue to find support from strong earnings growth, but investors should remain focused on sector trends, valuation and positioning rather than assuming strength is evenly distributed across the market.
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