European Central Bank board member Frank Elderson on Wednesday urged banks in the euro area to accelerate preparations against potential cyberattacks that could be launched using Anthropic’s Mythos AI model or similar technologies.

Frank Elderson, who also serves as Vice Chair of the ECB’s bank supervision arm, made the remarks in an interview published in the ECB’s Supervision Newsletter.

He said banks in the euro area currently do not have access to Mythos, but warned that this should not delay defensive preparations.

“Lack of access is not an excuse for inaction. On the contrary, it makes it even more critical that banks step up and act now,” Elderson said, as mentioned in a Reuters report.

ECB raises concerns over emerging AI cyber risks

The comments come as concerns grow globally over the cybersecurity implications of increasingly advanced artificial intelligence systems.

Earlier this week large US banks, which have reportedly been granted early access to Mythos, are moving quickly to address numerous weaknesses in their data systems that were identified by the AI model.

Mythos has emerged as a major concern among cybersecurity experts because of its ability to identify and exploit software vulnerabilities at a highly advanced level.

The model has prompted warnings from regulators and policymakers over the risks associated with AI-powered cyber threats.

Elderson warned that financial institutions should not focus only on the current version of the technology but also prepare for future AI systems that could become even more aggressive and capable.

Mythos AI seen as major cybersecurity challenge

Anthropic officially revealed Mythos in April 2026.

The company described it as a frontier-level, general-purpose AI model with highly advanced cybersecurity capabilities.

According to details provided about the system, Mythos has demonstrated an ability to identify and exploit vulnerabilities in software systems, including flaws that have remained undetected for decades.

During testing, the model reportedly generated working exploits on its first attempt more than 83% of the time, often outperforming human cybersecurity specialists.

The model is also capable of identifying so-called “zero-day” vulnerabilities, which refer to previously unknown software flaws in operating systems and web browsers.

Due to concerns over potential misuse, Anthropic has not made Mythos publicly available.

Instead, the company launched an initiative called Project Glasswing, under which access is restricted to vetted partners including Microsoft, Apple, Amazon Web Services, Google, and Nvidia.

These companies are permitted to use the model for defensive cybersecurity purposes, including identifying and patching vulnerabilities.

Concerns grow over misuse and unauthorised access

Beyond cybersecurity applications, Mythos is designed to support complex software engineering and multi-step reasoning workflows.

Anthropic has described it as representing a “new class of intelligence” above its Claude Opus tier.

However, concerns have intensified because of the model’s ability to autonomously locate and exploit software bugs, raising fears about how such technology could be misused if it falls into the wrong hands.

Reports in April 2026 suggested that a small group of users gained unauthorised access to Mythos through a private online forum.

Although those users reportedly did not use the model for hacking activities, the incident heightened concerns about the risks associated with uncontrolled access to advanced AI systems.

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BT Group share price continued its strong bull run, reaching its highest point in over seven years as its full-year earnings loomed. It jumped to 240p, up by over 140% from its lowest point in 2024. 

BT Group shares are soaring ahead of earnings

BT, the top telecom company in the UK, has done well this year, as investors predict that its turnaround efforts will work out. Also, unlike other companies, it is not heavily exposed to the ongoing geopolitical issues in the Middle East.

The next important catalyst for the stock will be its full-year earnings report, which comes out on May 21st. According to its latest consensus, the company’s annual revenue is expected to come in at 19.6 billion pounds, down by 3.4% from the last financial year.

Most of its segments are expected to record a deterioration, with its consumer revenue falling to 9.523 billion pounds. The business and its international segments are expected to slow to 5.2 billion and 2.16 billion pounds, respectively.

The only business expected to grow is its OpenReach brand, which connects most homes in the UK through its fibre. Its revenue is expected to come in at 6.17 billion pounds from the previous 6.15 billion a year earlier. 

BT’s profit, on the other hand, is expected to continue growing. The closely-watched EBITDA figure will come in at 8.214 billion from the previous 8.209 billion pounds. 

The company has used several approaches to improve its profitability. It has reduced its capital expenditure, which peaked a few years ago amid the Openreach rollout, and announced plans to slash workers.

BT Group faces some major challenges. The most notable one is the deterioration of its business segment, whose legacy solutions like landlines and networking are slowing. Competition in the industry has continued rising.

At the same time, the company’s broadband service has continued to lose substantial subscribers. In the last trading statement, the company said that its annual churn this year will be over 800,000 customers, lower than the over 1 million that analysts were expecting. 

BT share price has more upside to go

BT Group stock chart | Source: TradingView

The weekly chart shows that the BT Group stock has been in a strong bull run in the past few months. It recently crossed the important resistance level at 207p, the upper side of the cup-and-handle pattern, a common continuation sign. 

The cup has a depth of 105p (207p minus 102p). Therefore, adding this number to 207p gives the target price at 309p. Such a move would be a 30% upside from the current level. 

The bullish outlook is also being supported by other indicators. For example, it remains above all moving averages, a sign that bulls are in control. 

Additionally, top oscillators like the Relative Strength Index (RSI) and the MACD have continued rising. It also remains above the Ichimoku cloud and the Supertrend indicator. 

The only caveat is that this outlook is based on the weekly chart, meaning that the target may take weeks or months to be achieved. 

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Japanese investors became net sellers of foreign stocks in April for the first time in four months, as concerns over rising energy costs linked to the Iran war and broader inflation risks weighed on sentiment toward overseas equities.

Data released by Japan’s Ministry of Finance on Wednesday showed that investors sold a net 636.4 billion yen ($4.04 billion) worth of foreign stocks during the month.

The figure marked the largest monthly net sale since October 2025.

The shift in investor sentiment came amid growing concerns over inflationary pressures globally.

Market participants remained cautious as higher energy prices and rising living costs continued to affect economic expectations.

Foreign stock selloff hits multi-month high

The Ministry of Finance data showed that Japanese investors sharply reduced their exposure to foreign equities in April after several months of net buying activity.

The selloff reflected growing uncertainty in overseas markets, particularly as investors monitored inflation developments and geopolitical tensions.

Japanese investors also reduced their holdings of foreign bonds during the month.

However, the pace of selling slowed significantly compared with previous months.

Net sales of foreign bonds stood at 219.2 billion yen in April, marking the lowest monthly level in three months.

The moderation in bond selling suggested that investors remained selective in adjusting overseas portfolios despite broader caution in global financial markets.

US inflation data adds to investor caution

Investor concerns intensified after fresh inflation data from the United States pointed to accelerating price pressures.

According to data released by the US Labor Department on Tuesday, US consumer inflation increased at the fastest pace in three years in April.

Prices rose across several categories, including food, services, rental costs, and airline fares.

The inflation figures reinforced concerns that persistent price increases could continue to pressure global financial markets and weigh on investor appetite for risk assets.

Trust accounts lead foreign equity withdrawals

The Ministry of Finance data also showed varying investment patterns among different categories of Japanese investors.

Japanese trust accounts pulled out 1.85 trillion yen from foreign stocks during April.

The figure represented the biggest monthly net withdrawal since June 2025.

Despite selling foreign equities, trust accounts invested 897.3 billion yen into foreign long-term bonds during the month.

Meanwhile, investment trust management companies and life insurers remained net buyers of overseas stocks.

Investment trust management companies purchased foreign equities worth 1.25 trillion yen, while life insurers bought 333.1 billion yen in overseas stocks.

The contrasting investment activity highlighted differing approaches among institutional investors toward overseas markets amid rising economic uncertainty.

Japanese investors reduce US and European bond holdings

Separate data from the Bank of Japan showed that Japanese investors also reduced holdings of overseas bonds during the first quarter.

According to the report, investors sold US bonds worth 4.95 trillion yen and European bonds worth 1.02 trillion yen during the quarter.

Within Europe, Japanese investors sold French bonds worth 797.66 billion yen and German bonds worth 307.65 billion yen.

The data indicated that Japanese investors broadly reduced exposure to overseas fixed-income markets as global inflation concerns and market uncertainty persisted.

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Walmart is cutting or relocating around 1,000 corporate employees as the retail giant consolidates parts of its global technology and artificial intelligence operations in a broader push to streamline decision-making and accelerate its digital transformation.

The move, first reported by The Wall Street Journal on Tuesday, comes as Walmart increases investments in artificial intelligence, automation and technology infrastructure to compete more aggressively with rivals including Amazon, Costco and Aldi.

The restructuring follows the appointment of Daniel Danker, a former Instacart executive, who joined Walmart last summer as head of global AI acceleration.

Walmart’s latest restructuring is tied to organizational alignment rather than replacing workers with artificial intelligence, a company spokeswoman told the Journal.

Leadership reviews internal structure

According to the report, Danker and Walmart’s global technology chief Suresh Kumar reviewed the company’s internal structures and concluded that several teams performing overlapping functions should be combined to improve efficiency.

“In some cases, we’ve had different teams working on similar problems,” the executives said in a memo to employees viewed by The Wall Street Journal.

The memo added that affected employees would be able to apply for open positions within the company.

Many impacted workers have reportedly been asked to relocate to Walmart’s headquarters in Bentonville, Arkansas, or to offices in Northern California as the retailer continues consolidating operations around key corporate hubs.

Walmart, the largest private employer in the United States, employs roughly 1.6 million people domestically, most of them hourly workers.

AI push gathers pace

Under Chief Executive John Furner, Walmart has accelerated efforts to modernize its operations through artificial intelligence and digital tools as it seeks to narrow the technology gap with Amazon.

The company has invested heavily in AI-powered systems across its retail operations, supply chain and advertising businesses.

Walmart is also expanding higher-margin businesses beyond traditional merchandise sales while attempting to maintain profit growth.

Amazon has gained an early advantage in generative AI shopping tools through Rufus, its AI-powered shopping assistant designed to answer consumer queries and recommend products.

Broader corporate restructuring continues

The retailer has repeatedly reduced corporate staffing levels in recent years while centralizing teams and simplifying operations.

Earlier this year, Walmart filed notices tied to around 100 layoffs at its Hoboken, New Jersey offices.

Last year, the company eliminated about 1,500 corporate roles in the United States as part of a wider effort to reduce costs and speed up internal decision-making.

In recent months, Walmart has also combined technology platforms across several business units, including Sam’s Club, its international operations and its core retail business.

“We believe this will result in our growth continuing to come at a much lower marginal cost than what it has historically,” Furner said during the company’s earnings presentation earlier this year.

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Hindustan Petroleum Corporation Limited reported a sharp rise in profit for the fourth quarter and full financial year 2025-26, supported by stronger refining margins, higher refinery throughput, and steady growth in fuel sales volumes.

The state-run oil marketing company announced its financial results for the quarter and year ended March 31, 2026, on Wednesday.

The company said the performance reflected resilient refinery operations, sustained market sales growth, and continued progress in strengthening its financial position.

The company’s board also recommended a final dividend of ₹19.25 per equity share with a face value of ₹10 for FY26, subject to shareholder approval at the annual general meeting.

Profit rises sharply in FY26

HPCL reported a 133% year-on-year increase in standalone profit after tax for FY26 at ₹17,175 crore, compared with ₹7,365 crore in FY25.

Consolidated profit after tax rose 168% year-on-year to ₹18,047 crore in FY26 from ₹6,736 crore a year earlier.

For the March quarter, standalone profit after tax increased 46% to ₹4,902 crore from ₹3,355 crore in the corresponding quarter last year.

Consolidated quarterly profit stood at ₹6,065 crore, compared with ₹3,415 crore in Q4 FY25.

Revenue from operations for FY26 rose to ₹4,78,543 crore from ₹4,66,346 crore in FY25.

Quarterly revenue increased to ₹1,23,602 crore from ₹1,18,334 crore in the year-ago period.

HPCL’s quarterly net profit stood at about 49.02 billion rupees, helped by stronger refining margins and stable fuel demand.

Refining margins and throughput improve

The company reported robust gross refining margins during the financial year.

Gross refining margin for FY26 stood at $8.79 per barrel, compared with $5.74 per barrel in FY25.

In the fourth quarter, GRM increased to $14.27 per barrel from $8.44 per barrel a year earlier.

HPCL’s refineries recorded their highest-ever crude throughput of 26.04 million metric tonnes during FY26, marking a 3% increase from 25.27 MMT in FY25.

The company said its refineries also achieved their highest-ever distillate yield of 75.8% during the year.

Visakh Refinery processed 16.04 MMT of crude during FY26 and operated at 107% of its installed capacity.

Mumbai Refinery processed 10.00 MMT and operated at 105% of its capacity.

During the March quarter, total refinery throughput stood at 6.43 MMT.

The company also processed four new grades of crude oil during the quarter, taking the total number of grades processed during FY26 to 52.

Fuel sales remain steady

HPCL reported total sales volumes, including exports, of 51.45 MMT during FY26, up 3.3% year-on-year.

Domestic sales growth stood at 2.6%, while combined petrol and diesel sales rose 2.4% to 31.06 MMT.

LPG sales increased 5.2% to 9.41 MMT during the year.

For the fourth quarter, total sales volumes rose 2.4% year-on-year to 13.0 MMT.

Combined petrol and diesel sales for the quarter increased 3.3% to 7.83 MMT.

Financial discipline and expansion plans

HPCL said continued focus on financial discipline helped improve its standalone debt-equity ratio to 0.80 as of March 31, 2026, from 1.38 a year earlier.

The company incurred capital expenditure of ₹15,705 crore during FY26, including ₹4,611 crore in the March quarter.

Investments were focused on refining and marketing infrastructure, subsidiaries, joint ventures, and new business lines.

HPCL Rajasthan Refinery Limited commenced crude processing trials during February 2026 and processed 176 TMT of crude during the trial run.

The company said a fire broke out at the CDU unit of the refinery on April 20, 2026.

The fire was brought under control without any loss of life or injuries.

Restoration work is currently underway.

Sustainability and energy transition initiatives

HPCL continued expanding its renewable and clean energy initiatives during FY26.

The company added one compressed biogas plant under the SATAT scheme during the quarter, taking the total number of plants to 18.

HPCL also added 75 CNG outlets during Q4, taking the total count to 2,253. Solar-powered retail outlets increased to 23,824, representing 95% of its retail network powered by renewable energy.

The company signed multiple agreements during the year, including collaborations related to sustainable aviation fuel, LNG marketing, green hydrogen procurement, and used oil recycling infrastructure.

Shares of HPCL were trading 4.8% higher in afternoon trade on Wednesday, although the stock has declined around 23% so far this year.

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Nebius stock will be in the spotlight today as the European technology giant publishes its financial results, which are expected to show robust revenue and backlog growth. NBIS was trading at $129 on Tuesday, a few points below the all-time high of $197.

Nebius stock in focus as it releases its financial results 

The neocloud industry is booming, with more companies, especially those in the Bitcoin mining industry entering the sector. Early signs are that Nebius and CoreWeave are showing signs that they are becoming duopolies in the sector, thanks to their massive orders.

Nebius recently reached a $27 billion deal with Meta Platforms, making it one of the biggest partnerships in the industry. This is on top of its large deal with Microsoft, a top player in the AI industry.

The company also received a $2 billion investment from NVIDIA, a company that supplies its GPUs. That investment is a sign that NVIDIA expects its business to continue growing in the foreseeable future. It also bought Eigen AI in a $600 million deal

Looking forward, the next important catalyst for the NBIS stock is the upcoming financial results, which will provide more color about its revenue growth, capital expenditure, and its backlog.

Wall Street analysts are highly upbeat about its business, with the average estimate showing that its revenue jumped by 602% to over $388 million. The second quarter’s estimate is that its revenue will be $593 million, up by 464% YoY.

Its annual revenue this year is expected to surge by 522% to $3.3 billion, followed by $10 billion next year. These metrics make it one of the fastest-growing companies in the industry.

The main challenge for the company is that its capital expenditure is expected to keep rising in the foreseeable future as GPU, memory chips, and other products continue rising. Indeed, the top hyperscalers like Microsoft, Google, and Amazon pointed to the rising costs as the main reason for boosting their capital expenditure plans.

The rising costs, together with the fear of cash burn, explains why the Nebius stock has a high short interest of almost 20%. Still, we believe that these fears are unwarranted as the company needs to keep spending to fund its data centers. 

It will eventually slow its spending and start focusing on profitability. This is the same approach that companies like Meta Platforms and Tesla used before they became profitable.

Analysts have a mixed outlook about Nebius, with the average target being $139, 11% below the current price. In a recent note, Tai Liani, a Bank of America analyst, predicted that the company will go up to $205, while DA Davidson has a target of 

Nebius share price technical analysis 

NBIS stock chart | Source: TradingView

The daily chart reveals that the NBIS share price bottomed at $73 earlier this year. It formed a double-bottom pattern whose neckline was at $109.32, its highest point on January 16. 

The stock also moved above the crucial resistance level at $141, the upper side of the cup & handle pattern. It has constantly remained above the 50-day and 200-day moving averages, months after it formed a golden cross pattern.

Therefore, the stock will likely resume the uptrend in the coming days. If this happens, the initial target to watch will be at $200, followed by the psychological level of $220. 

However, as we saw with the CoreWeave stock, there is a risk that it may drop as bears attempt to fill the gap that was created earlier this month. This retreat, if it happens, will likely be a short-term one ahead of the potential rebound.

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Japanese technology investor SoftBank Group posted a sharp rise in quarterly profit on Wednesday as surging gains from its investment in OpenAI boosted the performance of its Vision Fund business.

The company reported a net profit of 1.9 trillion yen ($12.05 billion) for the January-March quarter, compared with a profit of 517 billion yen in the same period a year earlier.

The latest results marked SoftBank’s fifth consecutive quarter of net profit, underlining the growing importance of artificial intelligence investments to the group’s earnings recovery.

OpenAI drives Vision Fund performance

SoftBank’s Vision Fund unit recorded an investment gain of 3.1 trillion yen during the quarter, with the bulk of the increase linked to the rising value of OpenAI, the developer of ChatGPT.

For the fiscal year ended March, the Vision Fund booked gains totalling about $46 billion, driven primarily by SoftBank’s exposure to OpenAI.

SoftBank has already invested more than $30 billion in OpenAI and has pledged an additional $30 billion through 2026.

The company said earlier this year that its total committed investment in OpenAI would reach $64.4 billion, giving it an ownership stake of about 13%.

In March, OpenAI completed a funding round co-led by SoftBank that valued the artificial intelligence company at $852 billion, significantly boosting the paper value of SoftBank’s holdings.

Other investments weigh on returns

Despite the strong gains from OpenAI, SoftBank’s broader investment portfolio remained under pressure.

During the March quarter, nearly all of the Vision Fund’s approximately $20 billion gain came from OpenAI, while holdings in companies including Coupang, DiDi Global, and Klarna recorded losses.

SoftBank has increasingly positioned itself at the centre of the global AI boom through investments in artificial intelligence and semiconductor-related businesses, with OpenAI becoming the cornerstone of that strategy.

Debt concerns remain in focus

The company’s aggressive investment push has also heightened concerns about its balance sheet and debt exposure.

To finance its growing OpenAI commitment, SoftBank has sold stakes in companies such as T-Mobile and Nvidia, while also raising funds through loans and bond issuances backed by holdings including Arm Holdings and SoftBank Corp.

In March, S&P Global Ratings revised its outlook on SoftBank from “stable” to “negative,” citing concerns that the company’s liquidity position and portfolio quality could weaken because of its substantial additional investment in OpenAI.

The ratings agency said SoftBank could mitigate some financial risks through further asset sales as it continues to expand its AI-focused investment strategy.

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Cipla, India’s third-largest drugmaker by revenue, reported weaker-than-expected fourth-quarter earnings on Wednesday as weak sales and intense competition in its key US market weighed on performance.

The company’s consolidated net profit fell 54.6% year-on-year to 5.55 billion rupees ($58 million) for the quarter ended March 31.

The earnings figure came in below analysts’ average estimate of 7.05 billion rupees, according to data compiled by LSEG.

US market weakness impacts earnings

Cipla’s quarterly performance was affected by softer sales in the United States, which remains one of the company’s most important markets.

The company also faced stiff competition in the region, which pressured revenue and profitability during the quarter.

The decline in earnings reflected the challenging operating environment for the drugmaker in the US market, where pricing pressure and competition continued to impact business performance.

Profit drops more than half year-on-year

The company’s consolidated net profit dropped significantly compared with the same quarter a year earlier.

Cipla reported a profit of 5.55 billion rupees in the March quarter, marking a 54.6% decline from the previous year.

The result also fell short of market expectations tracked by LSEG analysts.

The weaker earnings performance highlighted the pressure on the company’s core business operations during the quarter.

Analysts estimates missed

According to data compiled by LSEG, analysts had expected Cipla to report an average quarterly profit of 7.05 billion rupees.

However, the company’s actual reported figure came in substantially lower than estimates.

The earnings miss reflected weaker-than-anticipated sales performance and competitive pressure in the US market.

Cipla remains India’s third-largest drugmaker by revenue, but the latest quarterly results underscored the challenges facing pharmaceutical companies operating in highly competitive global markets.

Cipla’s Q3 sales highlight strength

Meanwhile, Cipla reported steady operational performance in its unaudited consolidated financial results for the quarter ended December 31, 2025, despite pressure from declining sales.

The company posted global revenue of 7,074 crore rupees during Q3 FY26, while EBITDA stood at 1,255 crore rupees with margins at 18%.

Profit after tax came in at 676 crore rupees.

The branded prescription segment reported double-digit growth, led by respiratory, urology, cardiac, and anti-diabetes therapies.

Cipla added that Foracort retained its position as the top-ranked brand in the Indian pharmaceutical market, according to IQVIA MAT December 2025 data.

The trade generics business also recorded healthy growth, driven by distribution expansion, new product launches, and technological interventions.

During the quarter, the company launched eight new products, including an entry into the sexual wellness category.

Cipla’s consumer health business maintained leadership positions through brands such as Nicotex, Omnigel, and Cipladine, while continuing to expand distribution channels.

The company also highlighted its upcoming respiratory pipeline for FY27, including gAdvair and gVictoza, along with three additional peptide assets expected to launch during the fiscal year.

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 European companies are on track to report their strongest quarterly earnings growth in three years, driven largely by gains in the energy and financial sectors, even as concerns over the prolonged Iran war continue to weigh on the economic outlook and consumer sentiment.

According to LSEG I/B/E/S data, first-quarter earnings for European companies are expected to rise 10.2%.

That would mark the fastest pace of earnings growth since the first quarter of 2023.

The improvement comes despite the ongoing Iran war disrupting global energy supplies and increasing concerns around global growth and inflation.

Energy sector leads earnings surge

The energy sector has been the primary driver behind the stronger earnings performance.

LSEG I/B/E/S data showed that energy sector earnings are expected to rise nearly 50% in the first quarter.

The jump was supported by higher oil and natural gas prices following the outbreak of the war in late February.

At the start of the year, analysts had expected first-quarter earnings for the sector to decline.

Although oil and gas companies account for only about 7% of the STOXX 600 index, rapid upgrades in earnings estimates have significantly lifted broader market expectations.

Trading businesses at major European energy firms also benefitted from elevated price volatility.

Companies including Shell plc, BP plc and TotalEnergies SE reported strong trading profits as European firms gained more from price swings than their US counterparts.

Companies warn over uncertain outlook

Despite the strong quarter, companies continued to flag uncertainty around the economic outlook.

Concerns remain focused on the Middle East conflict, rising financing costs and the response from central banks.

Markets are currently pricing in an 80% chance of a rate hike from the European Central Bank next month.

Futures markets also imply two rate hikes from the Bank of England before the end of the year.

Several sectors, including airlines and beverages, have already seen companies lower guidance.

Banks benefit from higher rate environment

Financial companies also delivered strong earnings during the reporting season.

LSEG I/B/E/S data showed that financial firms are expected to report earnings-per-share growth of 16% once earnings season concludes.

More than 70% of financial companies reported earnings above expectations.

However, banking shares have struggled due to broader market concerns linked to the war.

The STOXX Europe 600 Banks index is down 1.5% since the start of the war, although it remains up 2.6% year-to-date after rising nearly 70% last year.

US markets outperform Europe

Analysts also pointed to a widening performance gap between US and European markets.

Since the war began, the STOXX 600 has fallen 2.3%, while the S&P 500 has gained 8% and the tech-heavy Nasdaq Composite has advanced 17%.

Strong earnings from major technology companies also helped support US markets.

Last week, Advanced Micro Devices Inc. jumped nearly 19% after forecasting quarterly revenue above expectations due to strong demand for data-centre chips.

Meanwhile, Alphabet Inc. and Microsoft Corporation also exceeded Wall Street expectations in recent weeks.

Consumer sectors under pressure

Consumer-focused sectors in Europe continue to face mounting pressure as confidence weakens.

Euro zone consumer confidence has fallen to a three-and-a-half-year low, while higher commodity prices continue to affect consumer staples companies.

A basket of European luxury stocks has dropped more than 20% in 2026.

Auto stocks are down 11.5%, while retail shares have declined 8.9%, with losses increasing during earnings season.

Luxury goods giant LVMH Moët Hennessy Louis Vuitton reported a sales impact from the Iran war last month.

British pub chain JD Wetherspoon plc also issued its third profit warning in five months last week.

Analysts at Amundi Investment Institute said a prolonged conflict would likely hurt European growth and company earnings.

They also warned that firms may struggle to pass rising costs on to consumers compared with the initial inflation shock following the Ukraine war.

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Siemens reported weaker-than-expectedsecond-quarter earnings on Wednesday.

The German engineering group posted strong order growth and maintained its full-year outlook despite what it described as a “very demanding” geopolitical environment.

The trains-to-industrial software maker said revenue for the three months ended March 31 remained flat at €19.76 billion, missing analysts’ forecasts of €20.14 billion in a company-compiled consensus.

Industrial profit fell 8% year-on-year to €2.97 billion, below market expectations of €3.046 billion.

The decline was partly attributed to a €300 million gain booked in the prior-year quarter following the sale of its wiring business, which had also boosted margins.

Net profit declined to €2.24 billion from the previous year but still came in above analysts’ expectations of €2.13 billion.

Orders rose 11% during the quarter.

The results are closely watched by investors as Siemens is considered a major supplier to industries and infrastructure projects globally, often providing insight into broader economic activity.

Orders rise despite geopolitical pressures

Chief Executive Roland Busch said the company delivered a solid performance despite ongoing global uncertainty.

“We delivered a successful second quarter despite the geopolitical environment, which remains very demanding,” Busch said.

On a comparable basis, excluding currency translation and portfolio effects, second-quarter orders climbed 18%, with double-digit growth recorded across most industrial businesses.

The company said strong performances in factory automation, building infrastructure, and mobility businesses supported the rise in orders.

Comparable revenue increased 6%, driven mainly by Smart Infrastructure and Digital Industries.

On a nominal basis, orders rose to €24.1 billion, while revenue remained at the prior-year level of €19.8 billion due to significant negative currency translation effects.

Siemens reported a book-to-bill ratio of 1.22 during the quarter.

The company said it is seeing an improving environment in the electronics and semiconductor sectors, alongside continued demand from industrial building users, data centres, and utilities.

Profitability supported by industrial businesses

Profit for the industrial business stood at €3.0 billion with a margin of 15.4%.

In the same quarter last year, Siemens had benefited from a €0.3 billion gain linked to the exit of a business within Smart Infrastructure, contributing to stronger profitability.

Net income reached €2.2 billion.

Basic earnings per share stood at €2.60, while EPS before purchase price allocation accounting came in at €2.81.

Free cash flow from continuing and discontinued operations rose sharply to €1.7 billion during the quarter.

Busch said Siemens continued to benefit from its technological capabilities and exposure to growth markets.

“Digital Industries and Smart Infrastructure posted impressive overall performance clear evidence that we’re on a path of profitable growth,” he said.

He added that Siemens was expanding its industrial artificial intelligence leadership through its Eigen Engineering Agent and sees AI as a significant growth driver for its hardware, software, and services businesses.

Siemens confirms fiscal 2026 outlook

Chief Financial Officer Veronika Bienert said the company’s operating performance and strong cash flow demonstrated resilience.

“Our operating businesses’ convincing performance and our strong free cash flow prove our resilience,” Bienert said.

“As a result, we’re very well positioned to reach our full-year group targets.”

Bienert also said Siemens’ newly announced share buyback programme would allow shareholders to participate in the company’s growth while supporting disciplined capital allocation.

Siemens confirmed its fiscal 2026 outlook and reiterated expectations for comparable revenue growth between 6% and 8%, excluding currency and portfolio effects.

The company also expects a book-to-bill ratio above 1 for fiscal 2026, which runs through September.

Siemens maintained its forecast for EPS before purchase price allocation accounting in the range of €10.70 to €11.10.

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