- Investor optimism snaps back as resilient earnings outshine unresolved geopolitical concerns, and investors see path toward a strong second half, with most expecting robust revenue and earnings performance
- 80% expect upcoming earnings to be Better Than the prior year, a survey record
- Amid higher inflation, 43% describe companies’ ability to pass on cost as Stronger or Somewhat Stronger versus last year
- 76% expect rising costs to have a Moderate negative impact on demand, while only 3% describe the potential fallout as Significant
- Despite growing optimism amid perceived durable earnings power, inflation now leads both the earnings call agenda and investor concern list
- AI remains a prominent topic, with investors seeking clearer narratives on AI spend and ROI
- Reinvestment and Debt Paydown remain the top two preferred uses of cash while Dry Powder falls in favor, underscoring expectations for strong top-line performance in 2026
Click Here to Access the Full Report
FARMINGTON, Conn., July 09, 2026 (GLOBE NEWSWIRE) -- Corbin Advisors, a strategic investor relations and communications advisory firm with a track record of supporting publicly traded clients in creating sustained shareholder value, today released its flagship quarterly research which captures trends in institutional investor sentiment. The survey, which marks the 67th issue of Inside The Buy-Side® Earnings Primer®, was conducted from June 5 to July 6, 2026, and is based on responses from 55 institutional investors representing ~$4.8 trillion in equity assets under management and sell-side analysts globally.
Following last quarter’s survey, which found a sharp reversal in positive sentiment amid Iran War fallout, the Voice of Investor® captured this quarter reveals a rebound in optimism, validating broader market trends, amid strong underlying demand and resilient earnings. With the immediate shock of the global conflict absorbed, structural investment theses have returned as the central factor shaping views, though reaccelerating inflation, softening real wages, and frothy valuations temper outright bullishness.
Indeed, 67% of surveyed investors and analysts characterize their sentiment as Neutral to Bullish or Bullish, nearly double the 35% recorded last quarter, while those Neutral to Bearish to Bearish fall to just 12%. Perceived executive tone follows suit, with 66% describing top brass as Neutral to Bullish or Bullish, up from 41% QoQ, while only 16% perceive tone as Neutral to Bearish or Bearish. Both register the highest percentage increases in upbeat sentiment since December 2024.
Rebecca Corbin, Founder and CEO, Corbin Advisors, commented, “This marks the second consecutive year that companies have had to manage through significant first-half headwinds. Investors and executives alike are proving highly adept at managing current uncertainties, and our channel checks this quarter reveal a resilient market that continues to lean on secular growth drivers rather than yielding to macro headwinds. Investors have seemingly moved past the Iran War, which remains a fluid situation at this time, and while inflationary pressures are clearly building, they have yet to manifest in reported results or negatively impact sentiment.
Ms. Corbin continued, “Guidance expectations reveal just how much the bar has risen. Our findings show that over one-third expect companies to raise full-year revenue outlooks, more than triple what we captured in Q2 last year and more than double Q2 2024 levels, making this the most demanding second-half setup we have measured in some time. That said, the field is not without risk, and at these valuations, the margin for error is thin. Rising costs and AI investment spend are already eating into margin and free cash flow expectations, and with real wage growth turning negative, executives should resist the temptation to simply ride momentum. Shocks like these take time to work through the system. Raised outlooks, supported by clear assumptions and delivered with candor about the still-uncertain inflationary environment, are what will separate credible guides from hopeful ones in the quarters ahead. Finally, be prepared to demonstrate tangible AI impact, as investors look for receipts within the next 12 months.”
As for Q2’26 performance, 47% expect earnings to come in In Line with consensus, with an additional 45% anticipating surprises to the upside and just 8% portending misses. Regarding KPIs, over half expect sequential improvement across Revenue and EPS, underscoring inherent optimism on top- and bottom-line performance. Margins and free cash flow are another matter: rising costs and AI capex spend weigh on profitability expectations, and more investors now expect FCF to Worsen than Improve, 34% versus 29%.
Amid views that demand is proving resilient, 66% Do Not Expect a Recession, up from 50% last quarter, and 47% expect U.S. GDP to Improve over the next six months. But investors are not looking through rose-colored glasses: 44% expect Consumer Confidence to Worsen, 59% anticipate inflation to Worsen, and 76% believe rising costs will eventually dent demand, though most anticipate a Moderate rather than Significant impact. For now, the ability to pass on cost remains intact, with 43% of investors describing companies' pricing power as Stronger than last year, compared to just over one-quarter describing it as Weaker.
For upcoming earnings calls, Inflation and its impacts lead the list of topics of interest at 54%, up 27 points QoQ, displacing Geopolitics. AI remains a prominent focus, but investors are demanding clearer narratives and supporting proof points.
On capital deployment, investors pivot back to emphasizing Growth over Margins slightly more, 56% to 44%, reversing last quarter’s defensive tilt, with 72% expecting annual capex to Accelerate through 2027. Reinvestment remains the top preferred use of cash at 58%, followed by Debt Paydown and Buybacks. Dry Powder falls 21 points to 9%, a quarterly decline second only to the COVID recovery in Q2’20, signaling conviction that cash is better deployed than held. Finally, both bolt-on and transformational M&A see meaningfully lower naysayers though outright support of deals wanes somewhat.
Globally, expectations are highest for Brazil’s economic growth, followed by the U.S., which posts the largest QoQ improvement among regions, with India and Japan tying for third. Russia registers the highest negative reading in survey history at 89%, followed by the Middle East and UK.
As for sectors, Healthcare leads the bulls, with Financials and Technology in tow. Outsized bullish sentiment on Energy normalizes following the post-Iran War spike captured last quarter, while REITs and Clean Energy round out the least favored.
About Corbin Advisors
Corbin Advisors is a strategic investor relations and investor communications advisory firm with a track record of supporting our publicly traded clients in creating sustained shareholder value. Our approach leverages decades of Voice of Investor® (VOI) research and data-driven insights; capital markets expertise and deep best-practice knowledge; and a proven playbook and passion for client outperformance. We are a trusted advisor and partner to boards of directors, executive leaders, and investor relations professionals, serving a broad range of companies globally across sectors, sizes, and situations. Through defining the standard of excellence and challenging conventional thinking, we enable our clients to boldly differentiate their equity brand, maximize valuation, and build more durable franchises.
Corbin Advisors. Outperformance Built on Trust®.
To learn more about us and our impact, visit CorbinAdvisors.com.
Media Contact
Stef Fontanez, Senior Director, Marketing & Communications
stef.fontanez@corbinadvisors.com
Relationship Contact
Michael Becker, Vice President, Head of Sales and Marketing
michael.becker@corbinadvisors.com
A video accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/b5b55948-0a3e-4f00-bbd1-9fd7453399e2
