According to Stocklytics.com, annual EPS growth for big tech, Microsoft, Nvidia, Amazon, Google, and Meta will fall by an astounding 77% by the end of fiscal 2026, hinting at a slugged growth rate for these big-lead tech firms.
RELATED: How to finance broadband in emerging countries – should Big Tech pay?
Edith Reads, a financial analyst at Stocklytics.com, explains:
“The imposing threat of more trade restrictions on chipmakers, coupled with growing skepticism about the lasting impact of the AI hype, has contributed to the substantial downturn in expected earnings growth for tech giants.”
At the end of 2023, big techs boasted an impressive 57% average EPS growth, significantly boosting the overall S&P 500 EPS growth to 4%. However, as AI momentum cools, these tech giants face a slowdown.
By the end of 2024, Google, Microsoft, Amazon, Meta, and Nvidia will likely achieve a median EPS growth of 37%, reflecting a 35% drop from the previous year. Analysts expect this trend of diminishing growth to continue, with EPS growth projected to fall to 19% in 2025 and 13% in 2026, raising concerns for these multi-billion-dollar tech corporations.
The full story and statistics can be found here: New Forecast: Big Tech Earnings Growth to Plummet by 77%