Updates after markets close

By Avinash P, Johann M Cherian and Purvi Agarwal

Feb 26 (Reuters) - Europe's benchmark index retreated from a record high on Thursday, as healthcare and technology shares weighed, while upbeat corporate earnings from the likes of Schneider and Indra limited the overall declines.

The pan-European STOXX 600 index .STOXX closed 0.1% lower after hitting an intraday record high earlier in the session.

Healthcare shares .SXDP weighed the most, down 1%.

Tech shares .SX8P followed with a 0.5% decline, led by chip-linked stocks ASML ASML.AS, ASM ASMI.AS and BE Semiconductor BESI.AS that fell around 4% each.

They tracked declines in semiconductor stocks in the U.S., after AI giant Nvidia's NVDA.O upbeat forecasts failed to excite investors.

"The market has become somewhat accustomed to Nvidia beating expectations and raising guidance... investors remain somewhat sceptical about the level of capex from the hyperscalers compared to the return on investment," said Ben Barringer, head of technology research at Quilter Cheviot.

The moves come at a time when the sector globally is under scrutiny on concerns that newer AI models can disrupt traditional businesses.

"There're a lot of questions around on the software side and about the level of disruption that we'll see. But for now, at least, on the hardware side, the outlook should be quite constructive," said Richard Flax, chief investment officer at Moneyfarm.

Gains in industrial stocks .SXNP capped declines, after a slew of corporate earnings. Rolls-Royce RR.L gained 3.2% as it promised further strong growth after a 40% profit jump in 2025.

AI hardware maker Schneider Electric SCHN.PA reported stronger-than-expected core earnings, driven by robust data centre demand, sending its shares up 3%.

The broader defence .SXPARO sector was 0.8% higher, led by Indra IDR.MC. The Spanish company topped the STOXX 600 with a 21% gain after reporting better-than-expected 2025 results on an order backlog that more than doubled.

London Stock Exchange Group LSEG.L jumped 9% after announcing a share buyback plan amid pressure from activist investor Elliott Management and concerns about AI impacting its business model. It helped drive financial services stocks .SXFP up 2%.

On the macro front, European Central Bank President Christine Lagarde said AI integration is not yet causing a wave of layoffs due to greater automation of labour, amid concerns of disruptions in the labor force.

Belgian chemicals group Syensqo SYENS.BR dropped 30% to the bottom of the STOXX 600, triggering a trading halt after fourth-quarter core earnings missed expectations.

French utility Engie ENGIE.PA jumped 7.2% after the company announced it would buy UK Power Networks from Hong Kong-listed CK Infrastructure Holdings 1038.HK for 10.5 billion pounds ($14.21 billion), giving it access to Britain's power market.

German sportswear maker Puma PUMG.DE jumped about 10% as annual losses were narrower than expected. Hikma Pharmaceuticals HIK.L plunged 17% after the drugmaker forecast slower annual revenue growth.

(Reporting by Avinash P, Johann M Cherian and Purvi Agarwal in Bengaluru; Editing by Mrigank Dhaniwala, Vijay Kishore and Jane Merriman)

((Avinash.P@thomsonreuters.com;))