Unilever Shares Jump as H1 Results Beat Expectations, Outlook Upgraded

Shares in Unilever (LON: ULVR) surged on Tuesday, rising as much as 6.5% to 4,925.5p, up nearly 300p on the previous close of 4,627p, after the consumer goods giant reported stronger-than-expected first-half 2026 results and raised its full-year guidance.

The FTSE 100 group posted underlying sales growth (USG) of 4.8% for the six months to June, driven almost entirely by volume, which rose 4.2%, with price contributing just 0.6%. Growth accelerated sharply in the second quarter to 5.8% USG, including 5.5% volume growth — described by chief executive Fernando Fernandez as Unilever’s “best volume quarter in over a decade.”

Turnover reached €25.6 billion, up 0.5%, as operational gains and acquisitions offset a nearly 5% currency headwind. Underlying operating margin edged up 10 basis points to 20.3%, while underlying earnings per share rose 2.4% to €1.61, even as diluted EPS fell 2.5% on a GAAP basis.

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Power Brands, which make up 78% of turnover, again outperformed with 6.0% growth, while emerging markets — led by India, Indonesia and Latin America — delivered broad-based strength. North America continued to outpace its market.

Investors also welcomed confirmation that the €800 million productivity programme was completed ahead of schedule, alongside progress on the planned separation of Unilever’s Foods division into a combination with McCormick, which remains on track for completion by mid-2027.

Management raised full-year guidance, now expecting sales growth at the upper end of its 4–6% multi-year range and a modest improvement in operating margin versus 20.0% in 2025 — fuelling the stock’s rally.