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    1. Home
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    3. >European first-quarter corporate profits seen falling 1.7% as trade war tensions abate
    Headlines

    European First-Quarter Corporate Profits Seen Falling 1.7% as Trade War Tensions Abate

    Published by Global Banking & Finance Review®

    Posted on April 29, 2025

    1 min read

    Last updated: March 1, 2026

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    Quick Summary

    European corporate profits are set to decline 1.7% in Q1, better than the previously expected 3.5% drop, amid easing trade tensions.

    European Q1 Corporate Profits Expected to Fall 1.7% as Trade Tensions Ease

    (Reuters) -The outlook for European corporate health has improved, the latest earnings forecasts showed on Tuesday, amid optimism over potential U.S. trading deals with key partners, especially China.

    European companies are expected to report a drop of 1.7% in first-quarter earnings, according to LSEG I/B/E/S data, better than the 3.5% drop analysts had expected a week ago.

    Consensus for revenue remained unchanged from last week, with analysts expecting an increase of 1.4%.

    This compares with a drop of 3.3% in earnings and a drop of 4.6% in revenues a year ago, the data showed.

    (Reporting by Javi West Larrañaga and Marleen Kaesebier; Editing by Emelia Sithole-Matarise and Mark Porter)

    Key Takeaways

    • •European corporate profits are projected to decline by 1.7% in Q1.
    • •Optimism grows over potential U.S. trading deals, especially with China.
    • •Revenue expectations remain stable with a 1.4% increase.
    • •Previous forecasts anticipated a 3.5% drop in earnings.
    • •Last year's earnings saw a 3.3% decrease.

    Frequently Asked Questions about European first-quarter corporate profits seen falling 1.7% as trade war tensions abate

    1What is the main topic?

    The article discusses the expected decline in European corporate profits for Q1 2023, amid easing trade tensions.

    2How much are European corporate profits expected to fall?

    European corporate profits are expected to fall by 1.7% in the first quarter.

    3What is the outlook for European revenue?

    Analysts expect European revenue to increase by 1.4% in the first quarter.

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