Equity earnings are on the up, with emerging markets leading the way

Strong earnings growth has been the story behind equity returns over the past decade, and continues to underpin global markets today.

Although markets are up, valuations in several regions have become cheaper as earnings growth has accelerated.

The outlook for earnings growth remains broadly positive across all major regions, with emerging markets forecast to lead in 2026. The information technology (IT) sector is expected to deliver particularly strong earnings this year, alongside energy and materials companies. However, the outlook begins to diverge in 2027, with rapid IT earnings growth expected to continue while energy earnings are forecast to weaken.

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