Goldman Sachs: Europe's STOXX 600 Enterprises Post 12% Profit Growth in H1 2026, Strongest in Three Years

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Goldman Sachs strategists led by Peter Oppenheimer said Europe's STOXX 600 enterprises recorded 12% year-over-year profit growth in the first half of 2026, marking the strongest earnings expansion in three years. The analysis is based on approximately 30% of the index's constituents that have already reported second-quarter results. The growth was primarily driven by commodities sector strength; excluding that sector, profit growth slowed to 6%, though strategists characterized this as "a reasonably robust pace." Technology stocks delivered some of the strongest earnings surprises, with average earnings per share (EPS) exceeding expectations by 7%, though semiconductor company ASME accounted for a substantial portion of the upside. Companies beating expectations saw average stock price gains of 2%, while those missing forecasts declined 3%.
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