Big Tech's Earnings Growth Forecasted to Decline

What We’re Showing

The median annual earnings per share (EPS) growth of the S&P 500 and the average of Microsoft, Nvidia, Amazon, Google, and Meta’s annual EPS growth in 2023, and their EPS forecasts from 2024 to 2026.

Data comes from Goldman Sachs and is updated as of June 13, 2024.

Key Takeaways

• Big tech companies are seeing rapid growth in the near term, far outpacing the broader market at 57% to 4% in 2023.
• However, in the next few years, EPS growth rates for big tech and the S&P 500 are projected to converge, suggesting that big tech’s recent growth is expected to slow down.
• The S&P 500 is expected to see a stable rise in EPS over the next two years, compared to significant declines from the five major tech companies.