European corporate health outlook improves despite projections of falling earnings

European firms expect a 3.1% drop in Q4 earnings, a slight improvement from last week. Most companies reporting so far have exceeded analyst expectations.

Insights:
European companies are currently projected to report a 3.1% decline in earnings for the fourth quarter of 2025, according to the latest weekly revision of consensus data from London Stock Exchange Group plc through its LSEG I/B/E/S service. This updated figure represents a slight improvement from the 3.9% contraction that was anticipated just one week ago. Despite the upward revision, the forecast still indicates the weakest quarterly earnings performance for the region in seven quarters.
The skyline of the banking district is seen during sunset in Frankfurt, Germany, April 21, 2024. REUTERS/Kai Pfaffenbach
The skyline of the banking district is seen during sunset in Frankfurt, Germany, April 21, 2024. REUTERS/Kai Pfaffenbach
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