Study: EU corporations left behind

The largest corporations from the US and Asia outperformed Europe's top companies in terms of revenue and profit last year. Large German companies performed particularly poorly.

This is the result of a study by the auditing and consulting firm EY, which analyzed the balance sheets of the world's 1,000 largest listed companies by revenue. The top companies from the United States increased their revenue by an average of 4.5 percent in 2024, while those from Asia grew by 3.2 percent. Europe's major corporations suffered a decline of 1.1 percent. The USA dominates the list, accounting for 317 companies. It is followed by China (137) and Japan (110). Germany ranks fourth with 43 corporations.

The gap in profits is even more pronounced: According to the study, Asian corporations increased their operating profit by almost a fifth (19.5 percent), while US companies increased their profits by 8.2 percent. In Europe, the top players' profits fell by an average of 6.5 percent. German corporations performed particularly poorly: Their revenue declined by 3.1 percent, and profits fell by 8.5 percent.

According to EY expert Jan Brorhilker, Europe's top corporations are coming under increasing pressure in global competition – not least due to weakening industrial sectors, geopolitical tensions, and tariff burdens. "The situation is truly serious and is currently becoming increasingly acute: While the top US corporations have recently experienced strong growth and increased their profits, European companies are increasingly finding themselves on the defensive," he said.

Europe's particular strength in the industrial sector is currently proving to be a major challenge. Traditional industries such as the automotive sector are undergoing profound change. In this context, the chaotic US tariff policy comes at an absolutely inopportune time. It is leading to further financial burdens and enormous uncertainty.

Among the ten most profitable listed companies in the world, none are from Europe. Seven, however, are from the USA – including Apple , the Google group Alphabet, the software giant Microsoft , and the chip company Nvidia. Brorhilker believes that Europe has little to counter the market power of the tech companies. Only a few European companies are in the top league in the technology sector. This weak position is proving to be an additional obstacle: "While industrial companies are suffering massively from tariffs and trade restrictions and disrupted supply chains, digital companies are posting record profits and can invest billions in innovations," Brorhilker says.