According to the Deutsche Bank report, as 75% of the companies in the European Stoxx 600 Index announced their third-quarter results, overall profit was 8% higher than market expectations, the largest margin exceeding expectations since the first quarter of 2024, which is significantly higher than the long-term average of 4%. According to Deutsche Bank, European companies' third-quarter revenue increased 12% year over year, and demand resilience and pricing capacity drove profit margins to a record 13.5%. Corporate performance guidelines have also improved markedly. The upward guidance accounts for 35% of the total adjustments, and the reduction accounts for only 11%, reflecting the fact that the business environment of most enterprises is still resilient. Investment in AI and data centers, steady demand in the US market, and the initial recovery of the European industrial cycle are the main factors supporting profit growth. Deutsche Bank expects profit growth of European companies by 17% for the full year of 2026 and 10% in 2027, with the growth rate expected to be 14% in 2027 after excluding the energy sector.

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