Global corporate earnings posted their strongest growth in more than three years in the third quarter of 2025, according to a new analysis from Deutsche Bank.
The bank said the quarter was marked by “solid beats and an acceleration and broadening of earnings growth,” with results across most regions exceeding expectations.
“Earnings beats rose across regions in Q3 to the top of their historical ranges,” Deutsche Bank wrote. “Beats were extremely strong in the US, Europe and Japan, but smaller in emerging markets (EM), which was held back by a modest miss in China.”
Overall, global earnings growth rose sharply to 11.3%, the highest level since 2022. The bank noted that global growth had been hovering slightly above its long-term average of 5.4% for nearly two years before this quarter’s sharp rebound.
In the US, Deutsche Bank noted that earnings growth was both stronger and broader, led by a sharp rise in the median company’s performance.
Median company growth, which strips out the impact of outliers, rose to 11% in Q3, near the highest since the Global Financial Crisis outside of the pandemic-recovery boom.
In the second quarter, only two sectors, Mega-Cap Growth & Tech and Financials, posted positive earnings growth, but that number rose to six in the third quarter. However, growth remained weak for Consumer Cyclicals, Energy, Telecom, Healthcare, and Consumer Defensives.
During Q3, profit margins also remained near historic peaks. “The aggregate margin in the US rose modestly to near its all-time high, while the median company margin stayed flat near its record high,” Deutsche Bank wrote.
The bank concluded that Q3 marked a notable turning point in the global earnings cycle, with growth and profitability reaching multi-year highs and broadening beyond the largest technology names.