Second Quarter Earnings: A Rising AI Tide Lifts Many Sectors

The second quarter of 2026 delivered one of the most remarkable earnings seasons in the post-financial-crisis era. On an adjusted basis, the S&P 500 posted index-level EPS growth north of 30%. The five largest hyperscalers (Alphabet, Amazon, Microsoft, Meta Platforms and Oracle) collectively spent more than $180 billion in capex in the second quarter of 2026. Communication services delivered a solid but bifurcated quarter. Earnings strength remained concentrated among AI-enabled platform businesses, particularly Alphabet and Meta. The financials sector delivered one of its strongest quarters on record, with the large-cap banks at the center of the story.