European Earnings Growth Expected to Hit 3-Year High as Energy Profits Surge
European Blue-Chip Earnings Outlook and Energy Sector Impact
By Mirko Miorelli
Energy Sector Drives Earnings Surge
July 16, (Reuters) - A surge in energy-sector profits is set to help European blue-chip companies post their strongest earnings growth in more than three years, according to LSEG forecasts published on Thursday as the reporting season gets underway.
STOXX 600 Earnings Forecasts
Companies in Europe's benchmark index STOXX 600 are forecast to report earnings growth of 16.7% in the second quarter, according to LSEG IBES data, based on results from 28 companies and market estimates for those that are yet to report.
Excluding Energy: More Modest Growth
Still, the rate excluding energy companies indicates a more modest 6.4% rise. European energy majors are seen posting profits more than 125% higher year-on-year, helped by higher oil and gas prices following disruptions to shipping through the Strait of Hormuz.
Revenue Expectations and Upward Revisions
Revenue is expected to increase 11.1% yearly, compared to previous estimates of 10.5% one week ago.
Key Companies and Market Sentiment
ASML's Positive Results
Dutch chipmaker ASML, Europe's most valuable company, helped sentiment after reporting earnings above expectations and raising its 2026 sales forecast on Wednesday.
Upcoming Earnings Reports
During the week of July 20, 52 companies are expected to report quarterly earnings, including Swiss drugmaker Novartis, Italian bank UniCredit, German software giant SAP and Volkswagen, all of which are expected to provide a broader read-through on European corporate demand.
(Reporting by Mirko Miorelli, Javi West Larrañaga; Editing by Matt Scuffham)
