Live Markets: European software searches for a catalyst as earnings near

Sage group

09/07/2026 10:16

Adds blog post
STOXX 600 up 0.3%
Miners, banks, tech rise
AstraZeneca misses trial goal for key drug
Wall St futures edge higher 
Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com
     
     
EUROPEAN SOFTWARE SEARCHES FOR A CATALYST AS EARNINGS NEAR
European software stocks head into the second-quarter reporting season with investors still looking for a reason to turn more constructive on the sector, Citi says.
After several quarters of steady or slightly improving updates, sentiment remains subdued as concerns linger over macro uncertainty, alongside the impact of AI-driven competition.
"After steady to somewhat better updates in recent quarters couldn't enthuse the sector sentiment, investors' view is in check waiting for catalysts for trade reversal," Graham Parry and other Citi analysts wrote.
Among the large names, Citi sees SAP SAPG.DE delivering a slightly better second quarter, with cloud backlog growth remaining solid at 25% and operating profit coming in modestly ahead of expectations. However, the U.S. bank expects the German group to leave its 2026 outlook unchanged.
For Dassault Systemes DAST.PA, Citi forecasts revenue growth of 4% and no change to guidance. Investors are also watching whether AI labs pose a competition threat.
Sage SGE.L is seen maintaining double-digit revenue growth in its fiscal third quarter, despite an expected slowdown in later quarters on tougher comparisons. Management is likely to express confidence in its 2027 targets, it says.
Capgemini CAPP.PA may raise its 2026 revenue growth target, Citi said, but there is some investor scepticism on margins and restructuring progress.
     
(Danilo Masoni)
*****
     
     
EARLIER ON LIVE MARKETS:
STOXX BOUNCES BACK, ASTRAZENECA DRAGS CLICK HERE 
BEFORE THE BELL: TECH LEADS EUROPE HIGHER AS OIL EASES CLICK HERE
CHIP EUPHORIA VIES WITH WAR WEARINESS CLICK HERE