The third-quarter 2026 earnings season confirms the excellent earnings momentum of European companies. The Bloomberg consensus indicates that aggregate profits of Stoxx Europe 600 companies should grow 20% over full-year 2026 compared with 2025.
Importantly, this momentum should continue : quarterly results announcements came with upward revisions to forecasts for the next two years. The market now expects Stoxx Europe 600 company earnings to grow 8% in 2027 and 10% in 2028.
Our analysis
The energy sector is the main driver of profit growth, particularly as a result of higher oil and gas prices. However, the recovery extends well beyond energy . Banks continue to benefit from high net interest income, recovering loan volumes and still-contained credit losses. Several industrial sub -sectors are also contributing significantly to the current strength of European companies.
These data confirm the recovery of European companies after several years of sluggish growth. The upward revision of EPS, despite rising rates, inflationary pressures and persistent political uncertainty, demonstrates the ability of European companies to protect their margins and adapt to a challenging environment .
Written on November 6, 2026.
Opinions are subject to change. The data used in this document comes from external sources and is used in good faith, but no guarantee can be given as to its accuracy. This document is provided for informational purposes only. The analyses and/or descriptions contained in this document should not be considered as an investment advice from Lazard Frères Gestion SAS, nor a recommendation to buy or sell. This document is the intellectual property of Lazard Frères Gestion SAS. LAZARD FRERES GESTION S.A.S. - 25, RUE DE COURCELLES - 75008 PARIS
