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The Saudi Capital Market Authority (CMA) reported that Q4 2025 earnings for listed companies showed a significant 35% year-on-year decline in combined profits, reaching SAR 85.87 billion. Only 10 companies missed the March 31 deadline for disclosing results. Excluding Saudi Aramco, net earnings plummeted 63% to SAR 16.4 billion, highlighting sector-specific challenges. The data reflects broader economic pressures, including lower oil prices and reduced consumer spending, impacting energy and non-energy sectors differently.
This earnings report has critical implications for Saudi equity markets, as investors reassess company valuations and sector resilience. The sharp decline in profits, particularly outside Aramco, may dampen investor confidence and trigger volatility in stock prices. Traders should monitor follow-up actions by the CMA and potential government interventions to stabilize the market.
For Gulf investors, the results underscore the need to diversify portfolios away from oil-dependent sectors. Key areas to watch include the performance of financial services, construction, and technology firms in upcoming quarters. Central bank policies and global energy price trends will also shape market sentiment in the near term.
