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.

洞察:
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 EUEUhas 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.
A commuter train passes by the skyline of the financial district in Frankfurt, Germany, October 25, 2021. REUTERS/Kai Pfaffenbach
A commuter train passes by the skyline of the financial district in Frankfurt, Germany, October 25, 2021. REUTERS/Kai Pfaffenbach
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