European earnings growth running ahead of consensus, BofA says

Bank of America says European Q1 earnings are running ahead of consensus, with ~30% of Stoxx 600 companies reported and headline EPS growth running about 15% year‑on‑year versus a ~7% consensus. Tech, telecoms and energy — plus resource upgrades tied to the Iran war — are the main drivers, while healthcare and weak breadth (only 48% of companies beating estimates) temper the strength. Revenue growth remains subdued, implying earnings upside has been driven by margin expansion, though supply‑constraint mentions (10% of companies) pose rising margin risk. BofA’s macro view nevertheless flags medium‑term downside, projecting a c.9% fall in Stoxx 600 12‑month forward EPS by mid‑2026, suggesting near‑term support for European indices but increased risk to earnings and market performance into next year.