European blue-chip companies are on track for their fastest earnings growth in four years, according to data from Thursday. The energy sector leads this rise with a 151% profit jump. UBS analysts said, "Europe's earnings momentum is coming from AI expansion," as shares hit a record high on the same day.
Nov 13 (Reuters) - European blue-chip companies remain on track for their strongest quarterly earnings growth in four years, analysts' estimates via LSEG's I/B/E/S data showed on Thursday.
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The energy sector is towing European blue-chip earnings and is expected to post a nearly 151% jump in profits, the data showed. Excluding energy, earnings were expected to grow 10%, compared with last week's 9.5% estimate.
Third-quarter revenue was expected to grow 12%, or 7% excluding the energy sector.
Europe's earnings momentum is coming from AI expansion, and more broadly through fiscal spending and consumer trends, UBS analysts said in a note on Thursday, seeing the trajectory continuing in 2027.
European shares hit a record high on Thursday, building on gains driven by a strong third-quarter earnings season, the recent drop in energy prices and a rotation out of AI-linked stocks in Asia and the US.
Reporting by Mirko Miorelli in Gdansk; additional reporting by Rafal Nowak and Javi West Larrañaga; editing by Milla Nissi-Prussak