Bank of America warns that S&P 500 earnings growth may slow in 2027, with Q1 growth expected to be below 20% and full-year growth dropping to around 15%. Previously, S&P 500 earnings per share (EPS) grew by approximately 32% in Q2 and 30% in Q1, achieving historically rare consecutive strong growth. The bank noted that while AI and cloud computing expenditures remain key supports, the market often underperforms when earnings remain strong but growth slows, and stricter comparison bases could pressure returns in 2027.