European corporate outlook continues to improve as earnings season gathers steam

STMicroelectronics

23/07/2026 10:51

    July 23 (Reuters) - Estimates for European blue-chip companies' earnings have improved, the latest LSEG I/B/E/S data showed on Wednesday, as soaring energy-sector profits are set to help deliver the best growth in more than three years.
Companies on Europe's benchmark STOXX 600 index .STOXX are expected to report earnings growth of 17.3% in the second quarter, according to the data that is based on results from 77 companies and market estimates for those that are yet to report.
Although all but one sector — healthcare — are expected to post profit growth, the aggregate rate is seen at a more moderate 7.2% when excluding the energy sector's 122.6% estimated growth rate.
Revenues for European blue-chips are seen growing by 11.5%, their best rate since the last quarter of 2022, finally breaking a streak of negative or flat growth in the past 13 quarters.
Shares of TotalEnergies TTEF.PA and Repsol REP.MC climbed on Thursday after their second-quarter results were met positively by the market, while Franco-Italian chipmaker STMicroelectronics STMPA.PA fell after its earnings missed market estimates.
Investors will also be closely monitoring the index next week, as the bulk of the STOXX 600 companies — including Europe's biggest banks, industrials and carmakers — are due to report their results.

(Reporting by Javi West Larrañaga, editing by Milla Nissi-Prussak)
((javier.west@thomsonreuters.com; +34 918 35 61 12))