Deutsche Bank's analysts project that European companies will experience double-digit earnings growth in the second quarter of 2026, with an overall expected increase of 12% year-on-year.
This growth is largely attributed to the energy sector, which is forecasted to see an extraordinary 84% rise in earnings, fueled by Brent crude prices averaging $97 per barrel, a 45% increase from the previous year. The analysts noted that without the energy sector's contributions, overall earnings growth would be limited to just 3%.
Other sectors such as chemicals and industrials are also expected to perform well, while banks are anticipated to see a slowdown in earnings growth, and healthcare is likely to report a third consecutive quarter of declines. The automotive sector, however, is expected to achieve its first positive earnings growth since 2023.
This analysis underscores the significant impact of energy prices on overall market performance and highlights the varying growth trajectories across different sectors