Morgan Stanley strategists say U.S. companies integrating AI are advantaged this earnings season and likely to deliver higher margins. The Wilson-led team says firms that treat AI as a core investment and have neutral-to-strong pricing power are seeing the most pronounced improvement in margin expectations; they project these companies’ net profit margins could rise roughly 100 bps by 2027 as AI is deployed.

2026-07-27

Morgan Stanley strategists say U.S. companies integrating AI are advantaged this earnings season and likely to deliver higher margins. The Wilson-led team says firms that treat AI as a core investment and have neutral-to-strong pricing power are seeing the most pronounced improvement in margin expectations; they project these companies’ net profit margins could rise roughly 100 bps by 2027 as AI is deployed.