Equity Strategy: Q2 Earnings Preview - robust corporate profits to offer support to the market

Research evidence excerpt

Equity Strategy: Q2 Earnings Preview - robust corporate profits to offer support to the market

J P M O R G A N Global Markets Strategy

13 July 2026

Equity Strategy

Q2 Earnings Preview - robust corporate profits to offer

support to the market

• Our bullish 2026 view had strong earnings outlook as one of the key Equity Strategy

AC drivers, contrasting with the stance by many that consensus expectations Mislav Matejka, CFA

entering the year were too high. Despite the spike in geopolitical uncertainty (44-20) 7134-9741

in Q2, it is encouraging that 2026 EPS projections kept moving higher, mislav.matejka@jpmorgan.com

something which is seen in all regions, and is not solely the result of IT and J.P. Morgan Securities plc

Energy. In fact, the majority of sectors in MSCI AC World have seen net Prabhav Bhadani, CFA

upgrades ytd. Iran conflict is flaring up again, but we think one keeps using (44-20) 7742-4404

prabhav.bhadani@jpmorgan.com

the dips driven by this to add, the same stance we had since 2nd half of March. J.P. Morgan Securities plc

• We remain constructive on earnings delivery through 2H, on improving Nitya Saldanha, CFA

activity driving better topline growth, and positive operating leverage, (44 20) 7742 9986

resulting in resilient profit margins. In terms of market internals, we believe nitya.saldanha@jpmchase.com

rotation and broadening in leadership is underway, from what was an J.P. Morgan Securities plc

extremely narrow participation in Q2, and that it will likely have legs – see Karishma Manpuria, CFA

July Chartbook. This naturally leads to bouts of increased volatility, but it (91-22) 6157-4115

karishma.manpuria@jpmchase.com

should not result in prolonged market selloffs, in our view, especially if J.P. Morgan India Private Limited