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Europe Inc heads for second-best earnings season since 2022 - Finance news and analysis from Global Banking & Finance Review
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Europe Inc heads for second-best earnings season since 2022

Published by Global Banking & Finance Review

Posted on October 29, 2026

2 min read

· Last updated: October 29, 2026

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European Blue-Chip Companies Head for Second-Best Earnings Since 2022

Quarterly Earnings Performance of European Blue-Chip Companies

Oct 29 (Reuters) - European blue-chips are set to deliver their second-best quarterly earnings in four years, an LSEG I/B/E/S report showed on Thursday, buoyed by energy companies reporting stellar profit growth.

STOXX 600 Index Earnings Growth

Companies on Europe's benchmark STOXX 600 index are expected to report quarterly earnings ​growth of 23.6% on average, according to the LSEG data based on results from 144 companies and market estimates for those that are yet to report.

That is just a notch under the previous quarter's 23.9% increase.

Impact of the Energy Sector

Most of that growth is due to the energy sector's big profit jump, with the LSEG report showing earnings rising 139% compared with the previous year thanks to energy prices driven higher by the Iran war, and record refining margins.

Excluding Energy Sector Performance

Still, excluding the energy sector, the rest of the companies in the STOXX 600 index are expected to post a 9.8% growth in third-quarter earnings, on aggregate, which is above the average of 7.1% over the previous 16 quarters.

Revenue Outlook and Sector Analysis

The third-quarter revenue outlook for European blue-chip companies has also improved and is now seen growing at 13.6% from a year ago, which would mark the best showing since the third quarter of 2022.

Sector-Wise Profit Growth

According to the report, 8 out of 10 sectors are expected to post profit growth in the quarter, while real estate firms and consumer cyclicals - auto, retail and entertainment companies - are seen delivering shrinking earnings.

Market Reaction and Top Gainers

Earlier on Thursday, the STOXX 600 index touched over one-month highs as a slew of strong earnings reports lifted sentiment, with defence and energy companies among the top gainers.

(Reporting by Javi West Larrañaga in Gdansk; Editing by Devika Syamnath)

Key Takeaways

  • STOXX 600 companies likely to post 23.6% average Q3 earnings growth, second only to the 23.9% jump in Q2 2026, driven largely by energy sector strength (investing.com).
  • Energy sector earnings surge ~139% year‑on‑year, fueled by elevated energy prices amid Middle East tensions and record refining margins; ex‑energy earnings still strong at ~9.8%, exceeding the 16‑quarter average of 7.1% (marketscreener.com).
  • Revenue growth for European blue‑chips is expected at ~13.6%, the strongest since Q3 2022; strong reports from major energy players like Shell and TotalEnergies underscore the bullish earnings backdrop (marketscreener.com).

References

Frequently Asked Questions

What is driving the strong earnings for European blue-chips?
Energy companies are delivering significant profit growth, primarily due to high energy prices and record refining margins.
How much is the expected quarterly earnings growth for STOXX 600 companies?
STOXX 600 companies are expected to report average quarterly earnings growth of 23.6%.
Which sectors are expected to post declining earnings?
Real estate companies and consumer cyclicals, including auto, retail, and entertainment, are expected to deliver shrinking earnings.
How does the current revenue outlook compare to recent years?
The third-quarter revenue outlook for European blue-chip companies is projected to grow 13.6% year-on-year, marking the best performance since Q3 2022.
What portion of the STOXX 600 index's earnings growth comes from sectors excluding energy?
Excluding energy, companies in the STOXX 600 are expected to report a 9.8% earnings growth, above the 16-quarter average of 7.1%.

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