Goldman Sachs analyst Ben Snider predicts another strong quarter for the S&P 500 as the fourth-quarter earnings season kicks off next week. While consensus estimates project 7% year-over-year EPS growth, Snider argues this forecast is too conservative given the index's history of beating expectations by an average of six percentage points throughout 2025. Revenue growth is also expected to outpace the 6% consensus estimate.

Goldman cites nominal GDP growth above 5% combined with a 7% depreciation in the trade-weighted U.S. dollar as key drivers likely boosting top-line figures by roughly two percentage points. Profit margins are poised for modest expansion, though tariff pressures could counterbalance gains from operating leverage and high-margin technology sectors. This quarter serves as a critical test for the AI trade and major technology stocks.

Hyperscaler capital expenditure growth is projected to decelerate sharply from 75% in Q3 to just 24% by the end of 2026. Investors will closely scrutinize evidence of enterprise AI adoption driving actual earnings contributions. Looking toward next year, Goldman forecasts 12% EPS growth, reaching $305 per share.