Global earnings breadth expands as 95% of countries avoid profit declines

Global earnings momentum is expanding significantly, with approximately 95% of countries expected to avoid year-over-year declines in forward earnings per share. This represents the strongest earnings breadth since 2021, according to analysis by Topdown Charts using LSEG data.

Artificial intelligence is identified as a primary driver of this global earnings boom. While AI infrastructure remains a major factor, the equity rally is increasingly supported by a broader range of markets and sectors rather than being limited to a narrow group of technology leaders.

Key performance indicators include a 39.7% year-over-year jump in MSCI World net income as of late August. Additionally, S&P 500 earnings rose by 52%, while STOXX 600 profits are projected to increase by 23.4%. This current trend of broad profit improvement compares favorably to strong periods in 2004–2006 and 2010–2011, contrasting sharply with the widespread profit declines seen during the 2008 financial crisis and the 2020 pandemic.