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US companies are expected to report strong earnings for the third quarter of 2026, with the AI-firms leading the rise. Analysts expect earnings across the S&P 500 to grow by around 31% from a year ago with the technology companies likely to drive about two-thirds of that growth.
The major firms like Alphabet, Amazon and Meta are in the focus, though some analysts are confused whether this trend will last long. However, the contribution of AI in this growth is undeniable. In this regard, Sameer Samana, head of global equities and real assets at Wells Fargo Investment Institute mentioned, “It's all AI and, to a lesser extent, energy and materials, but that's because of geopolitics. It wouldn't surprise me if 70-80% of the growth can be attributed to tech and AI.”
Aside from the AI sector, Energy has seen a push. It has seen a 115% increase from a year ago, with US oil prices surging roughly 30% in the third quarter because of the US-Israel war situation. The strong outlook has helped push US stocks to record levels.
The earnings season will pick up next week, with major banks such as JPMorgan Chase and Goldman Sachs set to report results. AI chipmakers remain in the spotlight as more firms build systems to run AI tools. However, strong results may not be enough to impress investors. Companies must show that their heavy spending is leading to higher sales and profits. Rising bond yields and interest rates could also put pressure on stocks.
Also Read: Apple Q3 Earnings: Tim Cook Highlights AI, iPhone Growth, Future Challenges
The AI boom is helping several parts of the tech industry. NVIDIA and other chipmakers earn money by selling processors used to train and run AI systems. Cloud firms such as Amazon and Alphabet sell computing power and AI services to other businesses. Data centre firms provide space and equipment, while networking companies supply the links that let servers share data.
AI remains a key driver of US earnings hopes, but expectations are high. Investors will look for signs that rising demand is turning into steady profits. If companies fail to deliver, stocks that have climbed on AI hopes could come under pressure.
