Barclays sees S&P 500 at 8,800 by end of 2027

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Barclays sees S&P 500

Highlights

Barclays raised its S&P 500 target to 7,950.
Its previous year-end forecast was 7,800.
The bank lifted its 2026 EPS estimate to $365.
Barclays sees the index reaching 8,800 in 2027.

The bank increased its target from 7,800 and expects the S&P 500 to reach 8,800 by the end of 2027, Reuters reported. Barclays also raised its 2026 earnings-per-share forecast for companies in the index to $365 from $337.

Earnings strengthen the bull case

Corporate results have given Wall Street strategists fresh support for higher equity targets. Of the 492 S&P 500 companies that had reported second-quarter results, 86% exceeded analyst estimates, according to LSEG data. That compares with a long-term average of 67.5%.

Technology companies have been a major force behind the better-than-expected season. Barclays expects AI investment and healthy economic activity to continue supporting earnings over the coming quarters.

The bank is more restrained on valuations. Persistent inflation, geopolitical uncertainty, and a more hawkish interest-rate outlook could limit how much investors are prepared to pay for future earnings. Barclays also sees uncertainty over whether the current pace of AI spending can be sustained.

Wall Street targets move higher

Barclays is not alone in becoming more optimistic about U.S. equities. HSBC also raised its year-end forecast this week, citing corporate earnings and continued spending on AI infrastructure.

Expectations across major banks remain broadly bullish. UBS Global Research, Goldman Sachs, and Citigroup expect the S&P 500 to finish the year at or above 8,000, placing Barclays slightly below some of its peers despite Wednesday’s upgrade.

Not every part of the market received a more favorable assessment. Barclays downgraded utilities to neutral from positive, pointing to regulatory uncertainty. Among the risks are disputes over wildfire liability reform and increasing opposition to data center permitting in some U.S. states.

Earnings take the lead from valuations

The revision shows how quickly profit expectations are becoming central to the outlook for U.S. stocks. With 86% of reporting S&P 500 companies beating forecasts, earnings have so far provided support for a market already up 12.1% this year.

Barclays’ higher $365 EPS estimate reinforces that case, but its 7,950 target also signals caution. The bank expects profits to rise while remaining wary of stretched valuations, inflation, and the durability of the AI investment cycle. Those tensions will help determine whether the market can reach the 8,000 level that several Wall Street firms now expect.

We have previously highlighted that the S&P 500 summer rally faces oil, Fed, and bond yield risks.

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