Finance

UBS slashes euro zone corporate earnings outlook for 2025

Published by Global Banking & Finance Review

Posted on August 22, 2025

1 min read

· Last updated: January 22, 2026

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UBS slashes euro zone corporate earnings outlook for 2025
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(Reuters) -UBS Global Wealth Management has forecast a 3% contraction in euro zone's corporate earnings growth this year, as weak second-quarter results and currency headwinds could weigh on profits.

UBS slashes euro zone corporate earnings outlook for 2025

UBS's Revised Earnings Outlook

(Reuters) -UBS Global Wealth Management has forecast a 3% contraction in euro zone's corporate earnings growth this year, as weak second-quarter results and currency headwinds could weigh on profits.

Current Earnings Forecast

UBS, which had previously estimated flat growth for 2025, expects earnings to recover with a 5% growth in 2026 and a faster acceleration in 2027, supported by improving trade dynamics and policy clarity.

Future Growth Expectations

In a note dated Thursday, UBS maintained its 'neutral' stance on euro zone equities.

(Reporting by Rashika Singh in Bengaluru; Editing by Mrigank Dhaniwala)

Key Takeaways

  • UBS predicts a 3% contraction in euro zone corporate earnings for 2025.
  • Weak Q2 results and currency headwinds impact profits.
  • Earnings expected to grow by 5% in 2026.
  • Faster growth anticipated in 2027 due to trade dynamics.
  • UBS maintains a 'neutral' stance on euro zone equities.

Frequently Asked Questions

What is UBS's forecast for euro zone corporate earnings growth this year?
UBS has forecast a 3% contraction in euro zone's corporate earnings growth this year, due to weak second-quarter results and currency headwinds.
What does UBS expect for corporate earnings in 2025?
UBS had previously estimated flat growth for 2025 but has now revised its outlook.
What growth does UBS predict for euro zone corporate earnings in 2026?
UBS expects earnings to recover with a 5% growth in 2026, supported by improving trade dynamics and policy clarity.
What stance does UBS maintain on euro zone equities?
UBS has maintained its 'neutral' stance on euro zone equities in its latest note.

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