Eurozone EPS Forecast 18% Inflated by Discretionary

Consensus 2026 earnings growth for Eurozone firms is 18% YoY, driven largely by a 235.2% EPS rise in Consumer Discretionary.
Median EPS growth for MSCI Eurozone constituents is a modest 8%, with sector forecasts ranging from 4.1% (consumer staples) to 31.1% (energy).
Revisions since Jan 2026 lifted energy (+29.5%) and semiconductors (+11.4%) forecasts, while automobiles were downgraded by 10.8%.
MSCI Europe trades at 15.9× forward P/E, 3.1% dividend yield; J.P. Morgan targets MSCI Eurozone 385 by Dec 2026, ~5% upside.