Reuters said Oct. 29 that LSEG I/B/E/S projections put third-quarter 2026 earnings for STOXX 600 companies 23.6% above a year earlier, the second-largest quarterly gain in four years, with energy the main driver.
The estimate combines results already reported by 144 STOXX 600 companies with projections for members still awaiting results, Reuters said. The estimate remains provisional because some results have yet to be published. At 23.6%, it sits just below the prior quarter’s 23.9% increase, placing it second in the four-year comparison. The year-over-year rate compares the quarter with the same period a year ago.
Energy-sector earnings are forecast to climb 139% year over year. Reuters attributed the outlook to higher prices associated with the Iran war and refining margins at record levels. With energy removed, the forecast for STOXX 600 earnings growth is 9.8%, above the 7.1% average over the previous 16 quarters, according to LSEG I/B/E/S estimates reported by Reuters.
The outlook also includes growth outside the energy sector. LSEG I/B/E/S projections put revenue growth for the STOXX 600 at 13.6% in the third quarter, the strongest pace since the third quarter of 2022, Reuters reported. Profit growth is forecast in eight of the index’s 10 sectors. Reuters said real estate and consumer cyclicals—including autos, retail and entertainment—are expected to see earnings declines.
Reuters put earnings growth at 21.9% in its Oct. 22 update, when 47 companies had reported and forecasts covered the rest. By Oct. 29, the reported-results sample was 144 companies, while estimates remained in place for companies that had not disclosed results. The rise between those two snapshots came as the reporting sample expanded, Reuters reported.
Separately, Reuters said the index briefly reached a level not seen for more than a month on Oct. 29. It said company results improved sentiment and defense and energy shares were among the session’s top gainers.
