S&P 500 earnings expectations have significantly risen, driven by AI investments and better-than-expected corporate results. Approximately 86% of companies have surpassed analyst expectations, the highest proportion since 2021. Wall Street now projects a 32% earnings growth for 2026, up from 24% before the Q2 earnings season. AI-related companies like Google and Amazon reported results that significantly exceeded expectations, while the Communication Services, Consumer Discretionary, and Energy sectors also saw substantial upward revisions.