Goldman Sachs forecasts strong earnings for US and European markets

Goldman Sachs strategists anticipate a robust earnings season in the United States and Europe, suggesting that corporate profits may exceed current market expectations. The investment bank maintains a bullish stance on equities for the remainder of 2026, projecting an 18% growth in Wall Street earnings through 2027, driven by resilient consumer spending and corporate margins.

In the technology sector, the firm recommends purchasing shares in several companies ahead of their quarterly reports. Key picks include Microsoft, which analysts believe is well-positioned to monetize artificial intelligence through its Azure platform, and Alphabet, where experts suggest the market is overestimating the threat of conversational assistants to traditional search. Other recommended stocks include Zeta Global, following an upgrade to a buy rating, and Palantir Technologies.

This optimistic outlook coincides with rising consensus estimates for 2026 profits. In Europe, the financial sector faces upcoming scrutiny as major institutions, including Banco Santander, BBVA, and CaixaBank, prepare to present their results.