U.S. stocks Q2 report cards can't hide concerns? Goldman Sachs warns that the 2026 profit margin forecast may be overly optimistic

Despite U.S. companies exceeding earnings expectations in the second quarter, Goldman Sachs warns that the market's forecast for profit margins in 2026 may be overly optimistic. Goldman Sachs' Chief U.S. Equity Strategist David Kostin noted that the S&P 500's earnings per share grew by 11% year-over-year, far exceeding analysts' predicted 4%. About 60% of listed companies reported earnings above expectations, with an optimistic corporate outlook, as 58% of companies raised their 2025 earnings guidance. However, Kostin expressed skepticism about the "significant expansion" of profit margins in 2026, predicting that analysts will downgrade forecasts in the coming quarters. Tech giants performed strongly, with earnings growth of 26%