European stocks traded mixed on Thursday, as investors digested a flood of regional corporate earnings as well as figures from chip giant Nvidia on Wall Street.
At 11:10 (Saudi Arabia time), Germany's DAX index fell by 0.2% and the UK's FTSE 100 index dropped by 0.1%, while France's CAC 40 index rose by 0.3%.
Profits in the spotlight
Quarterly corporate results take center stage on Thursday, in a busy day of earnings across Europe.
Fourth-quarter European earnings are running slightly above expectations, but the overall picture remains fragile, with weak expansion and sharp market penalties for companies that fail to meet market estimates, according to Bank of America Group.
With just over half of the STOXX 600 companies reporting their results, year-on-year earnings per share growth is tracking at 2%, compared with the consensus forecast of a 2% decline at this stage of the season.
Bank of America strategists, led by Andreas Bruckner, said in a note: The positive surprise for the index's earnings was dominated by the financial and industrial sectors, while the technology sector was the main drag.
Deutsche Telekom (ETR:DTEGn) reported a 9.2% drop in adjusted net profit for the fourth quarter, as a weaker US dollar eroded earnings from its majority-owned T-Mobile US unit, and the German telecoms giant also lowered its growth ambitions in its home market.
Automotive giant Stellantis (NYSE:STLA) posted its first-ever annual loss after announcing charges of €22.2 billion earlier this month as it scaled back its electric vehicle ambitions.
Allianz SE (ETR:ALVG) announced a record operating profit for 2025, but the German insurance giant issued guidance for 2026 that fell short of analysts' expectations.
AXA (EPA:AXAF) announced full-year 2025 results that met analysts' expectations, with underlying earnings per share rising 8% year-on-year, reaching the top end of the French insurer's target range.
Clariant (SIX:CLN) beat expectations for fourth-quarter earnings, as the Swiss specialty chemicals company achieved its third consecutive year of margin improvement.
German sportswear company Puma (ETR:PUMG) has forecast an operating loss of between €50 million and €150 million this year, after announcing a narrower-than-expected loss in 2025.
Schneider Electric (EPA:SCHN) announced record annual revenues, surpassing the €40 billion mark for the first time, as triple-digit demand growth in data centers drove a strong fourth quarter, and the French energy technology company set a double-digit profit target for 2026.
Nvidia achieves another profit surge
Across the Atlantic, Nvidia (NASDAQ:NVDA), the world's most valuable company, posted better-than-expected results for the January quarter late Wednesday and forecast current-quarter revenue above market estimates, betting on continued spending by major technology companies on their AI processors.
The chip giant expects fiscal first-quarter sales of $78 billion, up or down 2%, compared with the average analyst estimate of $72.60 billion, according to data compiled by LSEG.
However, after-hours stock gains were limited, as investors, accustomed to the company's strong revenue outperformance for 14 consecutive quarters, felt unexcited by the routine results.
Regional confidence data is due
Data releases due on Thursday include Italian and Spanish business confidence figures and EU economic sentiment data.
Elsewhere, sentiment in Britain's business and professional services sector has become markedly less negative in the current quarter, ending more than a year of decline, but consumer-facing firms remain pessimistic, a survey showed on Thursday.
The Confederation of British Industry's quarterly services sector survey showed that optimism for business and professional services firms jumped to -3 in February from -50 in November, its highest reading since August 2024.
Oil prices are stable ahead of talks
Oil prices were largely stable on Thursday, hovering near seven-month highs, as markets braced for a third round of nuclear talks between the United States and Iran later in the session.
Brent crude futures rose 0.2% to $70.84 a barrel, and U.S. West Texas Intermediate crude futures rose 0.2% to $65.62 a barrel.
U.S. envoys, including special representative Steve Wittkopf and presidential adviser Jared Kushner, are scheduled to meet with their Iranian counterparts in Geneva later in the session, as Washington pushes for an agreement on Tehran’s nuclear program.
US President Donald Trump said bad things could happen if meaningful progress is not made, and a prolonged conflict could disrupt supplies from Iran, the third-largest crude oil producer in the Organization of the Petroleum Exporting Countries.
