S&P 500 On Track To Post Best Net Profit Margin Since 2009: Market Strategist Says Big Tech Is Driving An ‘Unprecedented Boom’

• According to The Kobeissi Letter, Alphabet was the single largest margin contributor after it significantly beat earnings estimates.
• Chief Market Strategist at Creative Planning Charlie Bilello has pointed out that the second quarter earnings for the index is expected to rise 38% year-on-year, the highest growth rate since the third quarter of 2021.
• Amazon, Apple, Meta and Microsoft are all reporting quarterly results this week

The second-quarter earnings season is gearing up, with four of the “Magnificent Seven” companies slated to report earnings this week; the benchmark index S&P 500 is poised for a historic rally, according to market experts. 

“The S&P 500's net profit margin is on track to surge to 15.7% for Q2 2026, the highest in data going back to 2009,” The Kobeissi Letter noted in a post on X. 

Meanwhile, Chief Market Strategist at Creative Planning Charlie Bilello has pointed out that the second quarter earnings for the index are expected to rise 38% year-on-year, the highest growth rate since the third quarter of 2021.

Tech Gains Bolster Key Index Higher

According to The Kobeissi Letter, Alphabet Inc. (GOOG, GOOGL) was the single largest margin contributor after it significantly beat earnings estimates.

Alphabet reported revenue of $119.8 billion for the June quarter, up 24% from a year earlier and ahead of analysts' expectations, while the company’s earnings per share of $9.11 far exceeded analysts' expectations of $2.91 per share.

“Meanwhile, 86% of reporting S&P 500 firms have so far beaten EPS estimates, while 80% have exceeded revenue expectations. AI is driving historic earnings growth,” The Kobeissi Letter said. 

Bilello highlighted a similar pattern, stating in a post on X that the blockbuster performance of the S&P 500 can be attributed to Big Tech results. 

“We've never seen earnings growth this high outside of post-recessionary rebounds. An unprecedented boom fueled by massive EPS gains in big tech,” he said. 

What To Expect From Big Tech?

Amazon.com Inc. (AMZN), Apple Inc. (AAPL), Meta Platforms Inc. (META) and Microsoft Corp. (MSFT) are all reporting quarterly results this week, with investor expectations running high. 

Analysts expect Amazon to post nearly 8% growth in earnings per share to $1.81, while Apple’s estimates are at $1.89, a growth of about 20%. Forecasts also suggest that Meta and Microsoft will post 3% and 16% EPS growth, respectively. 

Markets will be watching especially for capital expenditure spending as concerns grow around whether the expenses can translate into growth for these AI names.

Meanwhile, the S&P 500 has lost about 1% so far this quarter, although it has gained more than 8% in 2026. The State Street SPDR S&P 500 ETF Trust (SPY), iShares Core S&P 500 ETF (IVV) and Vanguard S&P 500 ETF (VOO), which track the S&P 500, have posted similar results. 

Retail sentiment around SPY was ‘extremely bearish’ at the time of writing, while it was ‘bearish’ and ‘neutral’ for IVV and VOO, respectively. 

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