GBAF Logo
Global Banking & Finance Awards® 2026 Nominations open, free to enter Nominate now →
Energy expected to drive European earnings as underlying growth slows - Finance news and analysis from Global Banking & Finance Review
Finance

Energy expected to drive European earnings as underlying growth slows

Published by Global Banking & Finance Review

Posted on July 9, 2026

1 min read

· Last updated: July 9, 2026

Add as preferred source on Google
Finance Banking Markets

Energy Surge Drives European Blue-Chip Earnings Amid Slower Underlying Growth

European Blue-Chip Earnings Performance in Q2 2024

July 9 (Reuters) - A surge in energy profits linked to higher oil prices is set to drive European blue-chip earnings growth in the second quarter, masking weaker underlying momentum across the broader market, forecasts showed on Thursday.

Impact of Energy Sector on Earnings Growth

STOXX 600 companies are forecast to report earnings growth of 15.3%, according to LSEG IBES data, but growth falls to 6.0% when energy companies are excluded.

Revenue Growth Patterns

Revenue growth shows a similar pattern, with second-quarter sales forecast to rise 10.5% overall but just 3.9% outside the energy sector.

Sector-Wide Performance Overview

Although gains are becoming more broad-based, with eight of 10 sectors expected to grow compared with five in the first quarter, energy companies are expected to see earnings more than double, far outpacing growth in other industries.

Reporting and Editorial Credits

(Reporting by Rafal Nowak and Javi West Larrañaga in Gdansk; Additional reporting by Editing by)

Key Takeaways

  • Energy sector profits—forecast to more than double—are masking sluggish growth elsewhere in STOXX 600 Q2 earnings.
  • Excluding energy, earnings growth drops dramatically to around 6%, with revenue growth outside energy at just ~3.9%.
  • While more sectors (8 of 10) are expected to show growth than in Q1, energy remains the dominant driver amid slowing broader momentum.

Frequently Asked Questions

What is driving European blue-chip earnings growth in Q2?
A surge in energy profits linked to higher oil prices is the main driver of European blue-chip earnings growth in the second quarter.
How much are STOXX 600 companies expected to grow in Q2?
STOXX 600 companies are forecast to report earnings growth of 15.3% in the second quarter.
How does earnings growth change when excluding energy companies?
When excluding energy companies, second-quarter earnings growth falls to 6.0%.
How does revenue growth outside the energy sector compare to the overall market?
Second-quarter sales are forecast to rise 10.5% overall but only 3.9% outside the energy sector.
Which industry is expected to post the strongest earnings growth?
Energy companies are expected to see their earnings more than double, outpacing all other industries.

Tags

Related Articles

Image for Italy privacy watchdog fines Character.AI owner over age-check failures

Italy privacy watchdog fines Character.AI owner over age-check failures

Image for Gazans mourn aid worker killed by Israel who brought them the World Cup

Gazans mourn aid worker killed by Israel who brought them the World Cup

Image for EU lawmakers back reinstating interim rules to allow Big Tech to tackle child pornography

EU lawmakers back reinstating interim rules to allow Big Tech to tackle child pornography

Image for Spain's High Court orders BBVA to stand trial in spying case

Spain's High Court orders BBVA to stand trial in spying case

Image for EU drafts 'Buy European' rules for public tenders to curb foreign dependence

EU drafts 'Buy European' rules for public tenders to curb foreign dependence

Image for Families of crew aboard crashed Pakistani cargo plane face agonising wait

Families of crew aboard crashed Pakistani cargo plane face agonising wait

More from Finance

Explore more articles in the Finance category

Image for Rheinmetall, MBDA win German navy laser weapon contract
Rheinmetall, MBDA win German navy laser weapon contract
Image for UK's Workspace backs strategy as activist investor Saba mounts pressure
UK's Workspace backs strategy as activist investor Saba mounts pressure
Image for Swift starts blockchain ledger with initial set of 16 banks
Swift starts blockchain ledger with initial set of 16 banks
Image for ECB saw inflation rising despite nearly three expected hikes, accounts show
ECB saw inflation rising despite nearly three expected hikes, accounts show
Image for China, Taiwan brace for Typhoon Bavi, possibly the most powerful storm in years
China, Taiwan brace for Typhoon Bavi, possibly the most powerful storm in years
Image for Maersk to resume Middle East-US East Coast shipping through Suez Canal
Maersk to resume Middle East-US East Coast shipping through Suez Canal
Image for Palantir says UK police contract wrongly blocked over perceived 'values'
Palantir says UK police contract wrongly blocked over perceived 'values'
Image for EU drafts 'electrification' plan to curb oil and gas use, after Iran war disruption
EU drafts 'electrification' plan to curb oil and gas use, after Iran war disruption
Image for Exclusive-Meta to put AI chip into production in September as it looks to double computing capacity, memo shows
Exclusive-Meta to put AI chip into production in September as it looks to double computing capacity, memo shows
Image for Kremlin says US wrong to think escalation of Ukrainian strikes can help end war
Kremlin says US wrong to think escalation of Ukrainian strikes can help end war
Image for Pound nudges at four-week highs; volatility picks up
Pound nudges at four-week highs; volatility picks up
Image for US relies more on foreign stock than debt flows, a dollar risk, Deutsche Bank warns
US relies more on foreign stock than debt flows, a dollar risk, Deutsche Bank warns
View All Finance Posts