Bloomberg Surveillance · Monday, July 13, 2026
The increasing shift of the US economy towards higher-margin businesses, fueled by technologies like AI, the Internet of Things, and the cloud, is cited as the primary driver of rising corporate margins. This technological transformation is improving margins across the board and is expected to continue.
“A lot of it is margins, you know, the bears have been saying for the for actually the extent of this bull market, which has been almost fifteen years thirteen year anniversary a few weeks ago, the bears have been saying quarter after quarter were at peak earnings because it makes them crazy, I mean peak margins, rather that the margins keep going up.”
“But the margins do keep going up because the mix of the US economy is shifting increasingly towards higher margin businesses, and the companies that are in the index are using things like now AI, but before that, the Internet of Things and the cloud. It's a transformative technological change that's driving across the board margins to go higher.”