WS #15191
LSEG IBES data indicates European companies are poised to report a 19.4% increase in Q3 earnings, a strong fundamental backdrop. However, this positive data is being weighed down by fiscal tightening in key economies, such as France's plan to freeze wages and taxes in its 2027 budget. The divergence between corporate profitability and government austerity creates a mixed outlook for European equities.
European Corporate Earnings
LSEG IBES data indicates European companies are poised to report a 19.4% increase in Q3 earnings, a strong fundamental backdrop. However, this positive data is being weighed down by fiscal tightening in key economies, such as France's plan to freeze wages and taxes in its 2027 budget. The divergence between corporate profitability and government austerity creates a mixed outlook for European equities.