Profit warnings are one of the clearest indicators of corporate stress, and the UK has seen a steady number of warnings in 2025. EY-Parthenon’s latest Q3 Profit Warnings Report records 64 warnings in the quarter, reinforcing that earnings pressure is still relatively widespread.
What stands out in this cycle is the shift in underlying causes. The report finds that the biggest share of warnings now cite policy change and geopolitical uncertainty, with tariff disruption and broader instability reshaping forecasts across multiple sectors. At the same time, weaker consumer confidence has returned as a meaningful drag on performance. One in five warnings cited falling consumer sentiment, signalling that demand fragility is no longer confined to a handful of consumer names.
This is exactly the kind of environment where early-warning data matters. In our new fireside chat video, Kirsten Tompkins, Market Analyst at EY-Parthenon and co-author of the Profit Warnings report, sits down with Company Watch CEO, Craig Evans, to discuss the story behind the headline statistics.
Company Watch Data Explains the Findings
The conversation adds a crucial second layer by mapping EY-Parthenon’s findings onto Company Watch risk signals. Company Watch data is showing the same rotation of pressure in real time, not only in PLCs but across the broader UK corporate base, including mid-market and SME businesses that often enter distress before it becomes visible through headlines.
The discussion highlights how sector patterns in software and computer services, construction and materials, media, and retail are being reinforced by deteriorating operational and financial resilience metrics captured in Company Watch models.
For restructuring, insolvency, credit and advisory professionals, the message is clear: profit warnings are the public symptom, but granular risk data reveals the spread and speed of the underlying illness.
EY-Parthenon’s report provides the benchmark view of the listed market, and Company Watch data shows how those same fault lines are developing across the wider economy.
To explore the full sector breakdown and drivers, read the EY-Parthenon Q3 2025 Profit Warnings Report.
