Mixed Results for European Stocks Amid Earnings Focus
LONDON—European stocks displayed a mixed performance during Thursday morning trading, largely influenced by ongoing corporate earnings announcements.
By 9:20 a.m. (4:20 a.m. ET) in London, the pan-European Stocks 600 index was barely above the flatline, reflecting a variety of movements across different sectors and major exchanges.
Today’s earnings reports are particularly noteworthy in Europe. Companies like Deutsche Telekom, Schneider Electric, Allianz, AXA, Munich Re, Engie, Eni, Saint Gobain, the London Stock Exchange Group, Stellantis, and Covestro are among those releasing their results.
Interestingly, German sportswear brand Puma reported its full-year figures for 2025 this morning, revealing a significant 13.1% drop attributed to a strategic reset executed last year. While that might sound alarming, shares were holding steady with a 3.5% increase.
Puma’s operating loss stood at 357.2 million euros ($421.8 million), a decline from an operating profit of 548.7 million euros reported in the previous year. Notably, this loss was actually less than the 374.3 million euros analysts had anticipated. However, Puma mentioned that sales had taken a considerable hit in the latter half of the year, and profit margins decreased by 260 basis points to 45%. They’ve suggested pausing dividend payments for 2025 and anticipate an operating loss ranging between 50 million and 150 million euros this year.
Analysts at Jefferies indicated that Puma’s earnings report reflected progress, slightly ahead of the company’s timeline to end 2025, albeit without any significant surprises amidst a challenging period. They noted, “The group has already outlined 2026 as a transition year and today’s guidance feels consistent.”
In contrast, British firm Rolls-Royce reported a surprising 40% increase in profits for 2025 and projected profits exceeding 4 billion pounds ($5.42 billion) for 2026. Following this news, the company’s shares rose approximately 6%.
The London Stock Exchange Group saw an almost 6.5% uptick in morning trading after unveiling a £3 billion share buyback initiative. Their annual pre-tax profits surged by 56% year-on-year to £1.97 billion.
In other corporate results, Allianz achieved its highest-ever annual operating profit of 17.4 billion euros, marking an 8.4% increase from the previous year, though shares dipped by 0.6%. Conversely, AXA experienced a 1.3% rise as the French insurer reported a 6% annual increase in underlying profit to 8.4 billion euros.
Despite a generally positive trading week, a more cautious start was expected in Europe today due to the lingering uncertainties around global trade, particularly following President Donald Trump’s recent tariff announcements. Investors seemed somewhat relieved that a flat 10% tariff took effect instead of the anticipated 15% hike, with a focus squarely on corporate earnings.
Meanwhile, U.S. stock futures fell on Wednesday night as the market reacted to Nvidia’s latest earnings announcement, which included better-than-expected fourth-quarter profits and sales.
In Asia-Pacific, markets reflected Wall Street’s gains overnight, driven by strong earnings that lifted investor sentiment.
