Citi Raises S&P 500 2026 EPS Estimate to $365; AI Key to 8,100 Target

Citigroup’s equity strategy team, led by Scott Chronert, lifted its 2026 earnings-per-share estimate for the S&P 500 to $365 from $350 while keeping its year-end index target at 8,100. The bank said second-quarter earnings reports showed room for further upside in revenue and margins, with corporate profit resilience proving stronger than expected. The call came as U.S. stocks hit fresh records. After July producer price index data came in below expectations, concerns about Federal Reserve policy pressure eased, leaving the S&P 500 near record highs. Citi argued the rally is not solely a valuation story: upward earnings revisions are providing fresh support. Still, AI remains the critical variable for reaching 8,100. The bank said AI-related industries still make an important contribution to index earnings, and if AI infrastructure, semiconductors, cloud services and the power-supply chain keep converting demand into revenue, the market will find high valuations easier to accept. Citi also stressed that the rally has room to broaden, with more sectors’ earnings improving and helping U.S. stocks move beyond a structure dependent on a handful of tech giants.