Citi Raises S&P 500 Year-End Target to 8,100, Lifts 2026 EPS Forecast to $350

According to Citi, on June 5, the bank raised its year-end S&P 500 target to 8,100 points and lifted its 2026 earnings-per-share forecast to $350, citing artificial intelligence as still in the "middle stage" of a capital expenditure supercycle. The move came despite sharp market selloff triggered by U.S. employment data, with the Nasdaq Composite plunging 4.18% and semiconductor stocks down over 10%.

Citi's upward revision follows first-quarter S&P 500 earnings beating market consensus by 13.4%—a level rarely seen outside post-recession recoveries. The bank projects 2027 EPS at $400, representing 14.4% growth. While maintaining near-term upside from analyst forecast lag and tariff refunds, Citi warned that valuation multiples face compression pressure as market increasingly depends on actual profit growth rather than expanding price-to-earnings ratios to drive equity gains.