European stock markets registered modest gains as companies including Siemens Energy and Heineken released optimistic financial reports. Software firm Dassault Systèmes plunged 20% due to disappointing earnings guidance.

The Stoxx 600 index closed up 0.1%. Among individual stocks, Siemens Energy surged 8.4%, reaching a record high, as soaring electricity demand continued to boost sales of its gas turbines and grid products. Dutch brewer Heineken rose 4.4% after announcing plans to cut 5,000 to 6,000 jobs in response to declining alcohol demand.

Conversely, software stocks like SAP SE declined amid growing market concerns that artificial intelligence could disrupt the industry. Risks of AI displacement also weighed on wealth management shares, with St. James's Place PLC falling 13% after its US peers saw significant overnight losses.

Stronger-than-expected US employment data provided a lift to the markets. The unemployment rate also unexpectedly dropped, indicating continued stabilization in the US labor market into early 2026.

"As long as the market doesn't reprice expectations for Federal Reserve rate cuts, this is positive for equities," said Francois Rimeu, Senior Strategist at Credit Mutuel Asset Management. "This is truly one of the best data points we've seen recently."

The European benchmark index is gradually recovering towards record highs as investors assess the mixed performance of the current earnings season. According to a Citigroup index, the number of analysts downgrading profit expectations has surpassed those issuing upgrades since late 2025.