Corporate earnings are growing much faster than the economy. What Goldman strategists say about bubble concerns.

The gap between corporate earnings growth and overall economic growth is drawing fresh attention as investors weigh whether equity valuations have run ahead of fundamentals. Goldman Sachs strategists, led by Ben Snider, addressed the question of bubble concerns in a recent note, pointing to earnings as the key variable to watch rather than treating rapid market gains as automatically speculative.

According to the team, S&P 500 earnings per share growth is expected to slow to 11% in 2027 and 2028. That projection matters because it frames the debate over whether current pricing reflects durable profit expansion or simply momentum. Earnings growth that outpaces the broader economy is not inherently a bubble signal — companies can expand margins, gain share, or benefit from sector mix — but the durability of that outperformance is what ultimately tests valuations.

For market participants, the practical takeaway is that forward earnings estimates, not headline index levels alone, will likely shape how this debate resolves. If realized growth tracks the strategists' forecasts, the case for a fundamentals-driven market strengthens; if it undershoots, the bubble question may return.