With 2025 nearly behind us, investors are already looking forward to 2026, trying to gauge where markets and corporate earnings might head next. One theme emerging clearly is the potential for profit margin expansion—a trend that could shape both the S&P 500 and broader industry performance. RBC Capital Markets’ Lori Calvasina recently shared that her models anticipate the S&P 500 closing 2026 at 7,100, supported by roughly 10% growth in earnings per share (EPS) to $297. What’s catching attention is not just the EPS growth, but the underlying expectation that companies will widen their profit margins. A closer look at the drivers suggests a mix of strategic, technological, and macroeconomic factors at play. During the second-quarter earnings season, companies frequently cited tariff mitigation strategies, signaling a proactive approach to managing costs in a complex trade environment. Morgan Stanley analysts noted a clear uptick in such discussions, suggesting executives a...