Goldman Sachs expects Nvidia ’beat and raise,’ lifts price target to $240
Investing.com -- Third-quarter earnings season is proving stronger than expected and could deliver results beyond what analysts anticipated prior to the market plunge in April following President Donald Trump’s tariff announcements, according to Deutsche Bank strategists.
The team led by Binky Chadha noted that earnings beats remain solidly above their historical rates in both breadth and magnitude across earnings, sales and margins.
"If beats continue at these rates, earnings growth for the S&P 500 is on track to pick up strongly from 9.3% yoy in Q2 to 13.2% in Q3, near the top of the range of the last 2 years," the strategists wrote in a note.
While growth remains concentrated in mega-caps, particularly in technology and financial sectors, other sectors are showing signs of a tentative rebound from low bases.
The strategists also pointed out that 2026 earnings estimates continue to rise steadily and have returned to levels seen before what they termed "Liberation Day" in April.
Companies reporting so far have not indicated any shift in demand trends and continue to describe tariffs as manageable. Deutsche Bank noted there is "heightened focus on raising productivity and cutting costs, with or without help from AI."
The majority of S&P 500 companies are scheduled to report their results over the next two weeks.
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