Headlines
European third-quarter corporate outlook worsens slightly (Oct. 21)
Published by Global Banking and Finance Review
Posted on October 21, 2025
2 min readLast updated: January 21, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on October 21, 2025
2 min readLast updated: January 21, 2026
European corporate earnings for Q3 are expected to rise by 0.2%, with real estate leading gains. Key results from Barclays, Lloyds, and SAP could impact investor mood.
(In a story published on October 21, corrects paragraph 6 to say Q3 revenue is expected to rise 0.2%, not 0.4%)
By Javi West Larrañaga and Marleen Kaesebier
(Reuters) -The outlook for European corporate health has slightly worsened, the latest earnings forecasts showed on Tuesday.
European companies are expected to report an increase of 0.2% in third-quarter earnings, on average, according to LSEG I/B/E/S data, below the 0.5% growth analysts were expecting a week ago.
That would be the worst quarterly performance since the first quarter of 2024.
Market forecasts for third-quarter earnings have steadily deteriorated from the 12.5% growth expected in February, before U.S. President Donald Trump and his administration touted plans for a wide array of tariffs on imported goods.
REAL ESTATE TO LEAD GAINS
On the other hand, revenues for Europe-wide STOXX 600 companies are now expected to edge 0.2% higher compared to the same period last year, the data showed.
A year ago, the companies listed in the index delivered on average a 7.8% increase in third-quarter earnings and a 1.1% drop in revenues.
Out of those companies, more than 70 are set to report their results this week. Results from banks Barclays and Lloyds and Germany's software giant SAP could set the mood for investors.
Earnings growth forecasts are the highest for the real estate sector at 4.9%, while utilities are at the bottom with a forecasted decrease of 6.1% in the quarter, according to the data.
(Reporting by Javi West Larrañaga and Marleen Kaesebier in Gdansk, editing by Milla Nissi-Prussak)
Economic growth is the increase in the production of goods and services in an economy over a period of time, often measured by the rise in Gross Domestic Product (GDP).
The STOXX 600 is a stock index that represents the performance of 600 large, mid, and small-cap companies across 17 European countries, providing a broad view of the European equity market.
Revenue growth refers to the increase in a company's sales over a specific period, indicating the company's ability to expand its business and market share.
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