European blue chips remain on track for fastest earnings growth in four years

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.

Companies on Europe's benchmark STOXX 600 index were expected to report quarterly earnings growth of 25% in aggregate, based on results from 265 companies and estimates for those yet to report.

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.

Siemens gained 1.7% on Thursday after the industrial technology group raised its mid-term growth outlook, while staffing group Adecco jumped 14.7% after reporting stronger-than-expected quarterly operating profit.

Next week, investors will be watching out for results from French train manufacturer Alstom, among the nine STOXX 600 companies due to report.

(Reporting by Mirko Miorelli in Gdansk; additional reporting by Rafal Nowak and Javi West Larrañaga; editing by Milla Nissi-Prussak)