Temenos, a Swiss fintech company, saw its stock leap by 21.2% by late morning in London, crowning the firm as the leading entity in the Stoxx 600 index. The surge followed the firm’s CFO, Takis Spiliopoulos’s communication to Reuters that challenges due to tariffs, which were an obstacle in business contracts earlier in the year, had now been resolved.
The company upgraded its full-year earnings before interest and taxes (EBIT) growth prediction to a minimum of 9%, an increase from the initial forecast of 5%. The per-share earnings are now anticipated to bolster between 10% to 12% during this financial year, contrasting with a previously estimated bracket of 7% to 9%.
On the other hand, the stocks of German software colossus SAP dipped around 2.3% subsequent to the company reporting a 9% annual revenue increase to 9.03 billion euros ($10.6 billion), falling short of a consensus forecast of the London Stock Exchange Group (LSEG) at 9.08 billion euros. The operating profit exceeded predictions, arriving at 2.57 billion euros, a 32% increase from the previous year.
While maintaining its full-year 2025 forecast, Europe’s greatest listed firm revealed that the ongoing volatile conditions suggested a high degree of uncertainty and diminished predictability. SAP also raised caution about the strong Euro against the U.S. dollar, negatively affecting its reported income growth metrics.
SAP’s CFO, Dominik Asam, relayed to CNBC’s ‘Europe Early Edition’ that the economic turbulence stemming from U.S. trade policies had prompted clients to stall decisions. However, he expressed optimism following the recent announcement of the Japan-U.S. trade agreement.
The stocks of ASM International, based in the Netherlands and noted for manufacturing semiconductor equipment, plummeted by 10% by late morning in London. The decline followed the presentation of its Q2 results, with quarterly reservations recorded at a less than anticipated 702.5 million euros ($824.4 million).
The company shared on Tuesday that there had been irregularities in order intake during the second quarter. Early trades saw the stocks of Germany’s leading car manufacturers rise, encouraged by the prospect of a tariff breakthrough following the U.S.-Japan trade deal.
Luxury vehicle producer Porsche saw its shares spike by 7%, with Volkswagen, Mercedes-Benz Group, and BMW all trading above 4%. Shares of Stellantis, listed in Milan, and France’s car parts producer Valeo also reaped more than a 4% increase.
On the contrary, shares of the Finnish telecom giant Nokia plunged by 7% in early trade on Wednesday. The drop followed the company’s profit warning, wherein it revised its comparable operating profit guidance to a bracket of 1.6 billion euros to 2.1 billion euros ($1.9 billion to $2.5 billion), a drop from the initial range of 1.9 billion euros to 2.4 billion euros.
Nokia revealed in a late Tuesday announcement that external adversities were impairing the 2025 outlook projected in January. The most substantial disruption was due to foreign exchange volatility (specifically a weaker USD), causing an estimated 230 million euros in negative impact. Also, current tariffs were projected to hit the full-year operating profit by 50 million to 80 million euros.
Iberdrola, a Spanish electricity utilities giant, experienced a 14% annual drop in net profit for the first half of the year, closing at 3.6 billion euros ($4.2 billion). Iberdrola also announced a 5 billion euros increase to its share capital, stating the move was intended to back its upcoming investment strategy.
Meanwhile, Equinor posted a 13% drop in adjusted earnings for Q2, in alignment with expectations, as steadily declining oil prices impacted the Norwegian energy group. The company also recorded a $955 million depreciation on a critical offshore wind project in the U.S. due to regulatory alterations and tariffs.
French defense contractor Thales elevated its full-year sales forecast after reporting a strong than expected profit. The company’s adjusted operating profit logged at 1.25 billion euros ($1.47 billion) for H1, marking a 13% rise year-on-year, surpassing the 1.23 billion euros expectation based on the LSEG data.
Thales’ first-half sales showed a year-on-year expansion of 8.1%, resulting in 10.3 billion euros, largely attributed to outstanding performance in its aerospace and defense sectors. Notwithstanding, Thales indicated it expected a ‘limited direct impact of tariffs’ potentially applied to EU goods by the U.S. administration.
The company’s guidance reflected an assumption of a 10% reciprocal tariff on the EU, with its predictions excluding any potential retaliatory actions from European leaders. Italian banking group UniCredit reported a significant Q2 profit increase and upgraded its annual guidance after recalling its acquisition intentions for Italian peer Banco BPM, citing Rome’s opposition.
Italy’s second-largest bank noted a 25% annual net profit increase to 3.3 billion euros ($3.87 billion) in Q2, inclusive of one-off items, and 2.9 billion euros without them.