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European second-quarter corporate profits expected to fall 0.7%

Published by Global Banking & Finance Review

Posted on July 15, 2025

1 min read

· Last updated: January 22, 2026

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European second-quarter corporate profits expected to fall 0.7%
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(Reuters) -The outlook for European corporate health has deteriorated, the latest earnings forecasts showed on Tuesday, as U.S. President Donald Trump's most recent tariff statements created further

European Corporate Profits Anticipated to Decline by 0.7% in Q2

(Reuters) -The outlook for European corporate health has deteriorated, the latest earnings forecasts showed on Tuesday, as U.S. President Donald Trump's most recent tariff statements created further uncertainty for businesses.

European companies are expected to report a drop of 0.7%year-on-year in second-quarter earnings, on average, accordingto LSEG I/B/E/S data, below the 0.2% decrease analysts had expected a week ago.

(Reporting by Marleen Kaesebier and Javi West Larrañaga in Gdansk)

Key Takeaways

  • European corporate profits are expected to fall by 0.7% in Q2.
  • The decline is greater than the previously expected 0.2%.
  • U.S. President Trump's tariff statements add uncertainty.
  • LSEG I/B/E/S data provides the earnings forecast.
  • The outlook for European corporate health has worsened.

Frequently Asked Questions

What is the expected change in European corporate profits for Q2?
European companies are expected to report a drop of 0.7% year-on-year in second-quarter earnings, according to LSEG I/B/E/S data.
How does the current forecast compare to previous expectations?
The latest forecast is below the 0.2% decrease that analysts had expected just a week ago.
What factors are influencing the outlook for European corporate health?
The outlook has deteriorated due to U.S. President Donald Trump's recent tariff statements, which have created further uncertainty.

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