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Goldman Sachs Forecasts S&P 500 to Gain 11% by 2026
14 Nov
Summary
- Goldman Sachs sees S&P 500 hitting 7,600 by end of 2026
- Forecasts 6.5% annualized returns for S&P 500 over next 10 years
- Expects corporate profit margins to remain near record highs
As of November 14, 2025, Goldman Sachs has emerged as one of the first major Wall Street banks to release forecasts for the S&P 500 index in the coming years. According to the bank's strategists, the benchmark index is expected to reach 7,600 by the end of 2026, representing an 11% gain from current levels.
Looking further ahead, Goldman's team led by chief global equity strategist Peter Oppenheimer has projected a 6.5% annualized return for the S&P 500 over the next 10 years. This forecast, while slightly below their 7.7% annualized return prediction for global equities, still paints a relatively optimistic picture for U.S. stocks.
The bank's long-term outlook is based on several factors, including an expectation of 6% annualized earnings per share growth, a 1% annualized decline in valuations, and a 1.4% average dividend yield. Goldman also believes that corporate profit margins, currently near record highs at 13%, are likely to remain elevated in the coming decade, supported by factors such as global supply chain integration and lower interest rates.
