By Sarah Chen | May 28, 2026
Goldman Sachs raised its year-end S&P 500 target to 7,200 from 6,800 on Thursday, citing stronger-than-expected earnings growth and the resilience of the AI capex cycle. The new target implies roughly 5% upside from current levels.
The revision was driven by three factors. First, first-quarter earnings came in 4% above consensus, with margins expanding for the first time in five quarters. Second, the AI investment cycle is broadening beyond semiconductors into software and infrastructure. Third, the consumer remains resilient despite elevated interest rates.
The S&P 500 rose 0.4% on the day to 6,857. The Dow gained 120 points. The Nasdaq added 0.6%, supported by strength in mega-cap tech.
Goldman’s call follows similar upward revisions from Morgan Stanley and Bank of America earlier this month. The consensus year-end target for the S&P 500 now stands at 7,050, up from 6,600 at the start of the year.
The report highlighted four sectors for outperformance: technology, financials, industrials, and energy. The only sector where Goldman is underweight is consumer staples, citing stretched valuations.
