Corporate America's blowout earnings are being underpinned by a robust economic outlook and the artificial intelligence boom, meaning worries about an "earnings bubble" are overblown, according to Goldman Sachs Group Inc. strategists. Profits at S&P 500 firms jumped around 30% in each of the first two quarters, among the best showings on record, data compiled by Bloomberg Intelligence show. Full-year expectations are the strongest since the post-Covid rebound in 2021.

The upbeat assessment comes amid ongoing market scrutiny of valuation levels, with strategists emphasizing that current profit growth is supported by tangible economic expansion rather than speculative excess. The note highlights the resilience of the US business sector as a key counterpoint to narratives suggesting unsustainable earnings inflation.