Alexander Jansson in Dagens Industri

Our portfolio manager, partner and CEO Alexander Jansson was recently interviewed by Dagens Industri on how European markets are developing and shared some of our favourite stocks for autumn 2026. The interview sheds light on a shift the market has yet to fully appreciate: Europe is outpacing the US, and European earnings growth is considerably stronger than many realise.

Europe outperforms the US

Over the summer of 2026, Europe’s Stoxx 600 index rose by just over 6%, while the US S&P 500 advanced only 2%. This comes on the back of a strong earnings season in Europe, with analysts steadily raising their estimates for the coming quarters, a complete reversal of the pattern of downward revisions that has long characterised the continent.

“It’s been a fantastic earnings season. Earnings growth has been the strongest in four to five years, and it isn’t being driven by just a handful of companies, the growth we’re seeing is broad-based,” says Alexander Jansson.

Why Europe looks attractive going forward

Analysis shows that European companies generate more cash flow per unit of invested capital than their US counterparts, a critical advantage in today’s environment of higher interest rates. While the US tech giants have come under pressure amid concerns over their massive AI investments, Europe has increasingly been viewed as a safer haven, underpinned by more solid fundamentals.

European earnings growth is expected to reach 16% year-on-year in Q3 2026 and as much as 23% in Q4, almost on a par with the US, despite Europe’s previously weak growth.

CB Fonder’s top picks for the autumn

In the interview, Alexander Jansson highlights infrastructure and electrification in particular as compelling investment themes going forward. Our top picks include:

• Schneider  Electric (France)
• ABB (Switzerland/Sweden)
• NKT (Denmark)
• Prysmian (Italy)

These companies have clear exposure to investment in Europe’s power grids, an area set to benefit both from the green transition and from the infrastructure needs associated with AI and data centres.

A welcome development

“This is a welcome development for a Europe that has long struggled with growth,” notes Alexander Jansson. He stresses that many investors have yet to grasp the strength of this trend, creating opportunities for those who recognise the potential ahead of the broader market.

Read the interview here. (In Swedish).

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