Published by Global Banking & Finance Review®
Posted on May 13, 2025
1 min readLast updated: January 23, 2026
European corporate profits are forecasted to rise 1.9% in Q1, an improvement from last week's estimate. This is supported by a temporary U.S.-China tariff de-escalation.
(Reuters) -The outlook for European corporate health has improved, the latest earnings forecasts showed on Tuesday.
European companies are expected to report a rise of 1.9% in first-quarter earnings, on average, according to LSEG I/B/E/S data, better than the 0.4% rise analysts expected a week ago.
The improvement comes after 59.6% of the 230 STOXX 600 companies that have already reported first-quarter earnings exceeded analysts' expectations.
At the time of U.S. President Donald Trump's inauguration in January, the forecasts were for a 3.5% increase in first-quarter earnings, according to LSEG data, but that reversed to expectations for a drop of as much as 3.5% following Trump's April tariff announcements.
Global stocks rallied after news at the weekend of a temporary 90-day tariff de-escalation between the U.S. and China in their ongoing trade war.
Consensus forecasts for first-quarter revenues have also jumped from last week, with a 2.3% increase now expected compared with an increase of 1.9% expected last week.
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 Marleen Kaesebier. Editing by Mark Potter)
The main topic is the forecasted rise in European corporate profits for the first quarter, which is now expected to increase by 1.9%.
The forecasts improved from a 0.4% expected rise last week to a 1.9% increase, driven by better-than-expected earnings reports.
The temporary tariff de-escalation between the U.S. and China and strong earnings reports from STOXX 600 companies influenced the forecasts.
Explore more articles in the Headlines category
