Blue-chip European companies are expected to post 23.4% profit growth in the April-June 2026 quarter, with energy and materials companies forecast to lead the gains.
According to LSEG data, aggregate earnings growth for blue-chip European companies in the April-June 2026 quarter is expected to be 23.4% from the same period a year earlier, based on results from 268 companies that have already reported and estimates for those yet to report. The earnings season is expected to be broadly solid.
Energy companies' profits are expected to more than double from a year earlier, boosted by higher crude oil prices. Profits in basic materials are forecast to rise about 70%, the second-highest growth rate among sectors. Even excluding energy, earnings growth is expected to be about 12.3%.
Revenue is expected to rise 11.4% year on year, unchanged or slightly lower than the 11.4% forecast a week earlier. This suggests that the pace of growth is more moderate than the rate of earnings growth.
Of the 268 companies that have reported results, 58.6% beat analysts' earnings forecasts. Although this is above the quarterly average of 54% since 2012, market attention is focused on whether earnings momentum can continue amid slowing global growth and geopolitical tensions.