LIVE MARKETS-European software - how do earnings stack up amid sell-off?

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EUROPEAN SOFTWARE - HOW DO EARNINGS STACK UP AMID SELL-OFF?

A dramatic drawdown in global software and information stocks defined the beginning of February, and a few key European players are among the rubble.

Morgan Stanley tech equity analysts have taken a look at a few names, specifically how earnings stack up against recent share moves.

Among them is the UK's RELX - off almost 50% from recent highs and 26% lower on the year - and Dutch payments firm Adyen - shares of which have shed a third of their value in 2026.

On RELX, MS says it has "no concerns". The analysts cite EPS forecasts of +1-3% on update buyback assumptions as one reason they think the company is "well positioned to hold investors' hands through market nervousness". They are overweight on the stock.

On Adyen, they note full year 2026 growth guidance disappointed and restoring confidence might take time.

Neverthless it also gets an overweight rating - with MS remaining positive on its long-term opportunity and seeing the current moment as a good entry point.

France's Capgemini CAPP.PA is in focus after it fell 13% on February 13 after results. MS says while full year 2026 guidance was in line, restructuring is weighing on free cash flow.

France's Dassault Systemes DAST.PA plunged by over 20% when it posted results on February 11.

"FY26 guidance broadly matches our expectations on op margins and EPS, but the 3-5% cc revenue growth mid-point leaves room for c. 2pps of cuts to MS/consensus," write the analysts.

(Lucy Raitano)

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