Earnings Blast

Last week, major US hyperscalers showed demand for AI This week, market attention will shift to the travel and continues to exceed available capacity, as well as improved leisure economy via earnings results from Marriott, Airbnb, AI monetization. Unrealized gains on AI investments has led Host Hotels, Booking, and Wynn Resorts. S&P 500 2Q26E EPS growth to be revised higher to 46% Y/Y.

Second Consecutive Quarter of 20%+ EPS Growth % of Market Cap Reporting by 50% 46% Sector (8/3-8/7) 40%

Communication Services 1% 28% 27% 30% 25% Consumer Discretionary 1% 20% 12% 13% 13% 16% Consumer Staples 1% 10% Energy 1% 0% Financials 2% 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 4Q26 1Q27

Health Care 4% S&P 500 YoY EPS Growth % %YoY EPS Growth as of 3/31

Industrials 2% Forward Estimates March Higher $490 Information Technology 3% $459 $440 Materials 0% $400

Real Estate 0% $390 $349 Utilities 1% $340

S&P 500 16% $290 Jul-25 Sep-25 Nov-25 Jan-26 Mar-26 May-26 S&P 500 Consensus EPS Estimate

Mon 8/3 Tues 8/4 Wed 8/5 Thurs 8/6 Fri 8/7 Clorox, Marriott, ON AMD, Arista CVS, DoorDash, Eli Airbnb, Becton Aflac, Vistra Semiconductor, Networks, Lilly, Uber, Walt Dickinson, Palantir, Tyson Caterpillar, Disney, Western Constellation Foods McDonald’s, Pfizer Digital Energy, Ralph Lauren, Zoetis

Sector EPS Growth Sector Beat Rate Sector Sales Growth Energy 132.4% 77.8% 33.1% Communication Services 107.9% 90.9% 12.4% Consumer Discretionary 83.8% 75.0% 9.4% Information Technology 67.8% 91.4% 35.6% Materials 43.6% 89.5% 8.2% Financials 22.1% 83.6% 12.3% Industrials 13.5% 88.1% 10.7% Utilities 11.9% 83.3% 6.6% Consumer Staples 5.8% 78.6% 7.9% Real Estate 5.2% 76.2% 9.0% Health Care -13.6% 96.7% 6.2% S&P 500 46.3% 85.7% 14.0%

AI Infrastructure Spending to Remain Robust into 2027 as Demand Exceeds Supply Microsoft: “We expect FY 2027 capital expenditures will grow year-over-year given demand signals across our portfolio. Even as we invest to meet growing demand, full fiscal year operating margins should be down less than 1 point. In addition, we expect to remain free cash flow positive in FY 2027.”

Amazon: “We now believe we will spend approximately $220 billion in cash capex in 2026, the higher cost of memory pushing this number up from our prior estimate of about $200 billion. But even at that amount, we will still not have enough capacity to meet all the demand we have in 2026, and I believe this dynamic will also be true in 2027, too. In fact, the demand we already have for 2028 is striking.”

Cadence Design Systems: “We are seeing growing demand for our AI-driven solutions across our expanding customer base. The AI transformation is driving strong, broad-based performance across both Design for AI and AI for Design fronts. Given the growing business momentum and accelerating demand, we are raising our guidance for the year to 19% revenue growth and with higher profitability as we become more central to our customers as a strategic and trusted partner.”

Consumer Spending Remains Resilient Across Income Cohorts Visa: “Growth across consumer spend bands saw incremental improvement from Q2, with the highest spend band continuing to grow the fastest. Across our volume, both discretionary and non-discretionary spend remained strong. We do not see signs of the lower-spend consumer weakening in our volumes.”