European corporate health has taken a hit, with forecasts released on Thursday indicating a more challenging outlook. Relief expected from U.S. tariffs is overshadowed by ongoing geopolitical tensions, affecting traditional Western alliances.
The latest data from LSEG I/B/E/S predicts a 4.2% drop in fourth-quarter earnings for 2025, worse than the 4.1% decline analysts had foreseen just last week. This would be the worst performance in seven quarters.
Even though European stocks received a temporary boost following U.S. President Donald Trump’s decision not to impose tariffs on certain European allies, concerns linger. As revenues are projected to shrink by 3.5% compared to last year, experts warn of potential volatility in foreign policy.