French Economy Hits New Heights: CAC 40 Surpasses 8600 Points as Axa Posts Record Profits

The Paris stock market reached a historic milestone as the CAC 40 index soared above 8600 points for the first time ever, reflecting robust corporate performances and easing AI-related concerns. Early trading saw the index rise by 0.30% to 8585.12 points, before peaking at an unprecedented 8600.84 points, surpassing the previous day's record of 8560.91. Economist Jim Reid of Deutsche Bank attributed this surge to a wave of positive corporate earnings reports.

Among the market leaders, Engie's shares jumped 7.26%, reaching €29.54 following its announcement to acquire UK Power Networks, boosting the UK as Engie's second-largest market. Bouygues reported a 7.6% rise in net profit to €1.1 billion despite a challenging operating environment, while Schneider Electric achieved record annual revenue in 2025.

Conversely, automotive giant Stellantis experienced a record net loss of €22.3 billion, the second-largest loss for a French company, primarily due to exceptional charges. Additionally, Worldline and Wendel reported substantial losses.

In parallel, French insurance giant Axa announced a record profit of €9.79 billion for 2025, representing a 24% increase year-on-year. CEO Thomas Burberl highlighted the results as "the fruit of ten years of strategic work," crediting the company’s focus on large corporate risks, health, and retirement plans as well as the profitable sale of its asset management unit to BNP Paribas for €5.1 billion. Revenues also grew 5% to €115.5 billion, marking Axa’s second consecutive year of record earnings.

Together, these developments underscore strong corporate growth and renewed investor confidence in the French economy as it kicks off 2026 with significant gains and strategic milestones.