Investor Optimism Rebounds as Earnings Resilience Overshadows Geopolitical Concerns — Corbin Advisors LLC

Event summary

80% of institutional investors expect Q2’26 earnings to be better than the prior year, a survey record.
43% describe companies' ability to pass on costs as stronger or somewhat stronger versus last year.
76% expect rising costs to have a moderate negative impact on demand, with only 3% describing potential fallout as significant.
Inflation leads both the earnings call agenda and investor concern list, displacing geopolitics.
Reinvestment and debt paydown remain the top two preferred uses of cash, while dry powder falls in favor.

The big picture

Corbin Advisors' Q2’26 Inside The Buy-Side® Earnings Primer® reveals a rebound in investor optimism, with 67% of surveyed investors and analysts characterizing their sentiment as neutral to bullish. This shift comes amid resilient earnings and strong underlying demand, despite ongoing geopolitical concerns and reaccelerating inflation. The survey, based on responses from 55 institutional investors representing ~$4.8 trillion in equity assets under management, highlights the importance of clear guidance and tangible AI impact in the quarters ahead.

What we're watching

Inflation Dynamics: How rising inflation will affect companies' ability to pass on costs and maintain profitability.
AI Investment: Whether companies can provide clear narratives and tangible proof points for AI spend and ROI within the next 12 months.
Capital Deployment: The pace at which investors shift from holding cash to reinvesting or paying down debt, signaling confidence in top-line performance.