The AI boom is powering historic earnings growth: Full-year S&P 500 profit is now projected to grow +32% YoY in 2026, up from the +24% expected before the Q2 earnings season began. This comes as 86% of S&P 500 companies beat expectations this quarter, the highest beat rate since 2021. Communication Services saw the largest upward revision, with earnings now expected to grow +51% YoY, nearly double the +26% projected at the start of Q2. Consumer Discretionary followed, with estimates rising to +32% YoY growth from just +12% previously, driven by Amazon's, AMZN, results. Meanwhile, earnings in the energy and information technology sectors are projected to grow +83% and +59% YoY in 2026, respectively. AI is driving astronomical profit growth.(The Kobeissi Letter)