The S&P 500 wrapped up 2025 with a strong performance, marking another year of substantial growth driven largely by technology companies.

The index closed the year at 6,845.50, reflecting an annual gain of about 16.4%. As of press time, the benchmark was valued at 6,966. 

This advance built on momentum from prior years, marking the third consecutive year of double-digit returns for the benchmark, supported by solid corporate earnings, particularly in technology and artificial intelligence.

Despite some late-year volatility, including a pullback in the final sessions that saw the index decline on the last trading day, the overall trend remained upward.

Looking ahead to 2026, Wall Street expects the S&P 500 to extend its gains, supported by earnings growth, technological innovation, and a stable policy backdrop.

Median forecasts point to roughly 7,600 by year-end, implying about 11% upside from 2025, while broader estimates suggest gains of 9 to 10%. Earnings per share are projected to rise to around $306, up about 12.5%.

Analysts take on S&P 500 for 2026

Oppenheimer is among the most optimistic, setting a year-end target of 8,100 for the S&P 500, representing an 18% increase from recent levels and reflecting confidence in sustained market momentum.

Deutsche Bank also takes a bullish stance, forecasting the index at 8,000 by the end of 2026, implying a 17% upside and citing the potential for robust economic conditions.

Morgan Stanley projects a target of 7,800, suggesting a 14% gain, tied to accelerated earnings in growth sectors under supportive policies.

Seaport Research aligns with a 7,800 target, also implying a 14% rise, based on continued innovation and revenue growth across major industries.

Evercore sees the S&P 500 reaching 7,750 in its base case, a 13% increase, while noting that advances in artificial intelligence could push it higher or market corrections could pull it lower.

RBC Capital likewise targets 7,750, reflecting a 13% upside, with an emphasis on resilient economic fundamentals.

Citigroup sets a target of 7,700, equating to a 12% gain, highlighting mid-teen earnings growth as a key driver.

Finally, Goldman Sachsanticipates the index reaching 7,600, representing an 11% upside, with earnings estimates around $305 per share driven by technology-led revenue gains.

Featured image via Shutterstock