Barclays Raises S&P 500 Year-End Target to 7,950

Barclays has raised its year-end target for the benchmark S&P 500 to 7,950, up from 7,800, citing stronger-than-expected corporate earnings and continued strength in technology stocks. The new target implies roughly 3.6% upside from the index’s latest close. Barclays also sees the S&P 500 reaching 8,800 by the end of 2027. A key driver behind the more bullish outlook is the strength of U.S. corporate earnings. According to LSEG data, 86% of the 492 S&P 500 companies that had reported second-quarter results beat analysts’ expectations, well above the long-term average of 67.5%.

Barclays expects AI investment and resilient economic activity to keep supporting earnings growth in the coming quarters. It has also raised its 2026 S&P 500 earnings-per-share forecast to $365 from $337. However, the brokerage remains cautious about valuations. It highlighted concerns over the durability of AI spending, persistent inflation, geopolitical risks and a potentially more hawkish interest-rate environment. Despite these risks, the S&P 500 has already gained 12.1% this year.

Barclays also downgraded the utilities sector to “neutral” from “positive,” pointing to regulatory uncertainty, including wildfire liability reforms and opposition to data-center permitting in some states. The outlook adds to a growing wave of bullish forecasts on Wall Street. HSBC recently raised its own S&P 500 target, while UBS Global Research, Goldman Sachs and Citigroup have projected the index could finish 2026 at 8,000 or higher.

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