October 8, 2025: Reasons for Optimism
We anticipate corporate America to benefit from steady economic growth next year, supporting solid earnings growth. Fiscal stimulus from the OBBBA is expected to jump-start growth after a late 2025 slowdown. We expect companies to continue to manage tariffs effectively. The dollars going into the AI investment surge are only going to get bigger next year, driving strong technology sector earnings gains. And another year means companies will have more time to generate productivity gains from AI, supporting margins. The recent increase in earnings estimates is encouraging – see the chart below.
