The Earnings Gap Is Starting To Close

Lucas Juery
Lucas Juery
Portfolio Manager at SWAN Capital •

The earnings growth gap between the Magnificent Seven and the S&P 493 is narrowing as broader market performance accelerates.

Earnings growth for the Magnificent Seven is expected to become more aligned with the broader S&P 500 over the next several years. The group is projected to deliver earnings growth of 36% in 2026, up from 23% in 2025 and still well above the rest of the index. Meanwhile, the remaining S&P 500 companies are expected to see earnings growth accelerate from 11% in 2025 to 20% in 2026. By 2027, growth rates are projected to converge further, with the S&P 493 expected to grow earnings by 15% compared to 19% for the Magnificent Seven. 

Source: FacSet, Apollo Chief Economist, The Business Week Graphic; May 8, 2026

This graph was produced by Lucas Juery, CFA, CFPⓇ and is not intended to provide financial advice.

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