The European stock markets were in slightly positive territory on Tuesday, buoyed by a swarm of corporate earnings updates. By 12:15 p.m. in London, the pan-European Stocks 600 index saw a modest increase of 0.1%, with exchanges and sectors showing mixed results.
This Tuesday was particularly busy for corporate announcements, as numerous significant European companies shared their financial results. Notably, Philips revealed its full-year 2025 results early that morning.
The company noted a 6% growth rate in like-for-like orders, bouncing back from a net loss to profit in 2024. Philips also updated its guidance for 2026, projecting comparable sales growth between 3% and 4.5%.
They reported an increase in net income by 1.6 million euros, which Philips credited to improved operating profits, a decreased tax liability, and lower expenses. In a related matter, the company announced its plan to propose the reappointment of CEO Roy Jacobs at the upcoming annual general meeting on May 8.
During an appearance on CNBC’s “Squawk Box Europe,” Jacobs emphasized that the results were promising, pointing out a 7% growth in orders and an increase in margins, despite facing some tariff challenges. “It’s a steady path of improvement,” he commented, noting that while their order book remains strong going into 2025, converting that into sales will take some time. The expectations of sales growth appear to be a step up from last year’s 2% to between 3% and 4.5% for 2026—so sales are definitely on an upward trend.
Philips’ stock increased over 8% in early afternoon trading.
On another note, shares of blood pressure traded down 3.8% after announcing they would halt share buybacks in a bid to strengthen their balance sheet, while their full-year net profit for 2025 came in below expectations at $7.49 billion.
The French luxury goods company Kering also released its financial results on Tuesday. Shares in Kering, known for Gucci, surged by 13% at the start and finished up 10.8% after the company’s sales exceeded expectations and they hinted at a return to growth in 2026.
The positive vibes from Kering radiated through the luxury market. Brands like Burberry jumped 2.7%, while Hermès saw a 2% rise in Italy. Brunello Cucinelli’s stock increased by 1.5% as well.
Shares of the French luxury conglomerate LVMH initially rose but later dipped by nearly 0.1%. On the other hand, Richemont saw a gain of 1.4%.
Meanwhile, investors are also closely watching the political scene in the UK. Prime Minister Keir Starmer is facing increasing pressure to resign following a series of controversial decisions and the recent appointment of Peter Mandelson as ambassador to the U.S.—a connection to financier Jeffrey Epstein has raised eyebrows.
Lastly, U.S. stock futures were down overnight after the Dow closed at a record high. In Asia, stock markets responded positively, with Japan’s Nikkei hitting a new all-time high.
