European corporate earnings forecasts sink as trade uncertainty persists
European firms face a significant earnings decline for the fourth quarter of 2025. This downturn comes as trade tensions and legal rulings create headwinds.
Insights:
European companies are facing their sharpest earnings decline in nearly two years just as major stock indices reach unprecedented levels. According to data released on January 15, 2026, by LSEG I/B/E/S, the forecast for fourth-quarter earnings in the European Union 
EUhas been revised downward to a 4.1% decline. This update reflects a worsening outlook from only a week ago, when analysts anticipated a 3.9% decrease. If realized, this would mark the poorest earnings performance for the region across the past seven quarters.
EUhas been revised downward to a 4.1% decline. This update reflects a worsening outlook from only a week ago, when analysts anticipated a 3.9% decrease. If realized, this would mark the poorest earnings performance for the region across the past seven quarters.
