‌European shares slipped marginally on Thursday, as investors sifted through a mixed bag of earnings from the likes of Airbus, ​Rio Tinto and Nestle.

The pan-European index was down 0.26% at 626.97 points by 0918 GMT, retreating from a ​record close ​on Wednesday.

Airbus shares fell 6.3% after the world's largest planemaker softened its main jet production target, blaming engine maker Pratt & Whitney for failing to strike a crucial supply agreement. World's largest iron ⁠ore producer Rio Tinto declined 3.8% after the firm reported flat annual earnings that missed expectations on weaker iron ore prices.

The broader mining index fell 2.8% and led sectors lower. Nescafe coffee maker Nestle rose nearly 3% after reporting better-than-expected fourth-quarter sales growth and said it planned to sell its ice cream ​business.

"The company is ‌expecting organic ⁠sales growth of around ⁠3% to 4% in 2026, which would be one of the most solid years in quite some time. Operating ​margins are also expected to remain stable — exactly what investors want to ‌see," said Michael Field, chief European equity strategist at Morningstar.

"The ⁠message consumers are sending is that these major brands are still alive and well, and people are buying them again at a healthy pace.”

Earnings expectations have improved over the course of this reporting season. Data compiled by LSEG show analysts now see quarterly earnings dropping 0.6% year-on-year, compared with a 4% drop earlier this month. Investors globally were on edge after the U.S. and Iran heightened military activity in the oil-rich Middle East, even as talks on Tehran's nuclear programme in Geneva showed signs of progress.

European energy stocks were marginally higher, tracking a 1.4% gain in crude prices.

On the ‌data front, initial estimates on euro zone business activity during February are ⁠expected later in the day. Economists polled by Reuters expect manufacturing ​activity to reflect expansion from the previous month. Air France-KLM reported a record operating profit in stronger-than-expected full-year results, sending its shares soaring 16%. Among others, French telecoms group Orange climbed 4% to a near 16-year-high after targeting ​organic cash flow ‌of around 5.2 billion euros ($6.1 billion) by 2028. Arcadis fell 15% after Netherlands-based ⁠sustainable design firm's 2025 revenue missed analyst expectations.

(Reporting ​by Avinash P and Johann M Cherian in Bengaluru; Editing by Harikrishnan Nair)