Bloomberg Surveillance · Thursday, July 9, 2026
Despite strong first-quarter earnings, analyst Bob Elliott warns that current market expectations for sustained high earnings growth are unrealistic. He highlights that current projections for annualized earnings growth and long-term earnings are at historical highs, which could lead to significant disappointment if not met.
“Markets are expecting your antists are expecting thirty one percent annualized earnings growth on top of the extraordinary. Quarter in the first quarter.”
“We're not talking about five years forward type earnings, although even those are at the highest level they've ever been in fifty years, the highest level they've ever been in terms of expected earnings growth.”
“And that is a recipe for disappointment. You're already starting to see lots of cracks in the view of how productive the AI trade is going to be, how much investment's going to occur.”