European stock markets opened higher today amid a busy earnings season – the Stoxx Europe 600 index is up 0.70%, driven mainly by the banking, technology, and healthcare sectors. Shares of Royal Philips are gaining 9.90% after raising its profitability forecast, while AstraZeneca is up 3.90% on strong oncology drug sales.
Markets are also reacting to the recently announced trade agreement between the EU and the U.S., which imposes a 15% tariff on most EU exports to the U.S., while significantly reducing tariffs on American goods. Despite the deal, Goldman Sachs has maintained its forecast of zero EPS growth in Europe for 2025, citing limited macroeconomic impact.
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The DAX is staging a solid rebound from the support zone above 24,000 points, gaining 1.10% today to reach 24,300 points. From a technical perspective, the index remains in a consolidation phase, and a breakout above the 24,600-point resistance level is needed to resume the upward trend.
Source: xStation5
Company News
Royal Philips (PHIA.NL) raised its full-year profitability outlook, now expecting an adjusted operating margin of 11.3%–11.8%, as the impact of tariffs proved less severe than anticipated. The company also reported a 1% rise in Q2 sales to €4.3 billion, recovering from its earlier May warning of a potential €300 million tariff-related hit.
AstraZeneca (AZN.SE) reported a strong second quarter, with profit before tax rising 30% to $3.13 billion and total revenue up 12% to $14.46 billion, surpassing analyst expectations. Core earnings per share reached $2.17, and EBITDA rose 22%. The company reaffirmed its 2025 outlook, expecting low double-digit growth in core EPS and high single-digit revenue growth.
Sika (SIK.CH) reported a decline in first-half profit and sales, with net income falling to 553.8 million francs and revenue down to 5.68 billion francs. Despite the drop, the Swiss chemical group expects modest full-year 2025 sales growth in local currencies and reaffirmed its 2028 targets for sustainable, profitable growth.
EssilorLuxottica (EL.FR) reported stronger-than-expected Q2 revenue, up 7.3% to €7.18 billion, beating forecasts, driven by a favorable price mix and growth in smart glasses. However, profits were pressured by US tariffs and investments in wearables, leading to a 90 basis point drop in adjusted gross profit margins for the first half.
