America’s Profit Boom Leaves Europe’s Corporations Trailing

Strong euro, U.S. tax cuts and growth of American tech firms are among reasons for earnings gap

The eurozone’s economy has outpaced the U.S. for the past two years, yet its corporate profits are trailing those in America like never before.

The bloc posted its strongest economic growth in a decade last year, inspiring investors to pour billions into European exchange-traded funds following the 2017 French election.

European earnings have...