Barclays projects Big Tech earnings growth ~25% in Q1 2026, far above the S&P 500’s ~8% forecast.
Profit margins for the six firms are expected to rise to about 29% from 27% a year earlier.
Valuation premium has compressed to the 9th percentile of the past decade, reflecting software sell‑offs and capex concerns.
Barclays sees S&P 500 trading around 20x forward earnings, with Industrials and Communications at top‑quartile valuation spreads.