Europe’s Industrial Firms to Stand Out on AI, Defense Spending

An ABB Ltd. robot places a component on to a Raspberry Pi personal computer on the production line at the Sony UK Technology Centre in Pencoed, UK.Photographer: Chris Ratcliffe/Bloomberg

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October 15, 2025 at 6:00 AM UTC

European industrial firms are expected to outperform all other sectors this earnings season as growing artificial intelligence and defense spending brightens the outlook for manufacturers of infrastructure and weapons.

The MSCI Europe industrials index should deliver earnings-per-share growth of 4.9% for the third quarter, higher than any other sector in the region, Bloomberg Intelligence data shows.