Has the European turnaround finally arrived?
Europe just had its best reporting season in years. Companies in the benchmark Stoxx Europe 600 index boosted earnings per share by 18% on average in the second quarter compared with a year earlier. Earnings barely grew at all in 2025 and 2024 as the strongest companies in the index were offset by weaker players. […] The post Has the European turnaround finally arrived? appeared first on Marginal…
Europe reported its strongest earnings season in years during the second quarter, with companies in the Stoxx Europe 600 index posting an average 18% increase in earnings per share compared to the same period last year. This marked a stark contrast to 2025 and 2024, when earnings growth was minimal. Despite the strong performance, growth is spreading beyond a select few AI and banking stocks, according to Gerry Fowler, the head of the European equity strategy team at UBS.
The region's positive momentum is fueled by government spending and private investment in sectors such as infrastructure, energy security, and defense. The Stoxx Europe 600 index has gained 10% this year, slightly less than the S&P 500's 12% gain. While European stocks have lagged behind U.S. stocks since the mid-2000s, the disparity has narrowed recently.
Written by urgent.news from Marginal Revolution's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
