Good News for S&P 500 Earnings: 86% of Companies Beat Expectations in 2026

86% of S&P 500 companies have beaten analyst earnings expectations in 2026, driven by massive AI-related spending across the economy. While this suggests large-cap stocks aren't overvalued, concerns remain about over-reliance on the AI boom. Investors worried about concentration risk may consider diversifying into small-cap and value stocks, which research suggests could outperform large-caps over the next decade.