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Home > Finance > European corporate outlook dims slightly, still marred by global uncertainty

European corporate outlook dims slightly, still marred by global uncertainty

Published by Global Banking and Finance Review

Posted on January 22, 2026

1 min read

Last updated: January 22, 2026

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Tags:GDP corporate profits financial markets European economies economic growth

Quick Summary

European corporate outlook slightly worsens due to geopolitical tensions, with a 4.2% drop in 2025 earnings expected.

Slight Deterioration in European Corporate Outlook Amid Global Uncertainty

European Corporate Earnings Outlook

Jan 22 (Reuters) - The outlook for European corporate health has slightly deteriorated, the latest forecasts showed on Thursday, as U.S. tariff respite is overshadowed by geopolitical tensions which are straining traditional Western alliances.

Impact of Geopolitical Tensions

European firms are expected to report a 4.2% drop in 2025 fourth-quarter earnings, on average, according to LSEG I/B/E/S data, slightly worse than ‌the 4.1% decrease analysts expected a week ago.

Earnings Forecast for 2025

(Reporting by Javi West Larrañaga; Editing by Matt Scuffham)

Key Takeaways

•European corporate outlook slightly worsens.
•Geopolitical tensions impact earnings forecasts.
•U.S. tariff respite overshadowed by global issues.
•4.2% drop expected in 2025 fourth-quarter earnings.
•LSEG I/B/E/S data highlights earnings decline.

Frequently Asked Questions about European corporate outlook dims slightly, still marred by global uncertainty

1What is GDP?

Gross Domestic Product (GDP) is the total monetary value of all goods and services produced within a country's borders in a specific time period, often used to gauge economic performance.

2What are corporate profits?

Corporate profits are the earnings that remain after a company has paid all its expenses, taxes, and costs. They are an important measure of a company's profitability and financial success.

European Corporate Earnings Outlook

Impact of Geopolitical Tensions

European firms are expected to report a 4.2% drop in 2025 fourth-quarter earnings, on average, according to LSEG I/B/E/S data, slightly worse than ‌the 4.1% decrease analysts expected a week ago.

Earnings Forecast for 2025

(Reporting by Javi West Larrañaga; Editing by Matt Scuffham)

Frequently Asked Questions

1What is GDP?

Gross Domestic Product (GDP) is the total monetary value of all goods and services produced within a country's borders in a specific time period, often used to gauge economic performance.

2What are corporate profits?

Corporate profits are the earnings that remain after a company has paid all its expenses, taxes, and costs. They are an important measure of a company's profitability and financial success.