European Blue-Chips Face Toughest Earnings Season in Two Years

European blue-chip companies are experiencing a challenging earnings season with an expected 0.4% decline in fourth-quarter earnings. While 56% of companies exceeded market estimates, the overall outlook has worsened due to global trade issues, with some estimates initially predicting growth.

Estimates for European blue-chip companies' fourth-quarter earnings have worsened, marking potentially their most challenging earnings season in the last two years, according to the latest LSEG I/B/E/S data.

Year-on-year earnings for major European companies are projected to decline 0.4% in the final quarter of 2025, based on reports from 229 STOXX 600 companies and estimates for those yet to release results, showcasing a downward revision from the previous week's anticipated 0.1% decline.

While revenue projections have sharply worsened—from a previous 2% fall to a current 4.2% decline—56% of the reporting companies have exceeded market expectations, suggesting a somewhat resilient corporate response amid global trade disruptions.

(With inputs from agencies.)