Key Highlights Shares of Unilever climbed more than 6% in London following Q2 underlying sales expansion of 5.8%, significantly surpassing the 4.3% analyst forecast Volume expansion of 5.5% m
Shares of Unilever (ULVR) surged as high as 6.8% to reach £49.43 during early Tuesday trading in London, touching its highest point since March 6, following the consumer goods giant’s impressive second-quarter performance and enhanced annual sales projections.
By mid-morning, the shares were trading up 5.8% at £48.96, positioning the stock for its strongest single-session performance in twenty-four months. This rally follows a 16% decline since the outbreak of conflict involving Iran.
Second-quarter underlying sales expanded 5.8%, substantially outpacing the 4.3% consensus among market analysts. Revenue reached €13.0 billion, representing a 3.8% increase, even as foreign exchange fluctuations created a 2.4% headwind.
UNILEVER RAISES OUTLOOK AS VOLUME GROWTH REACHES 16-YEAR HIGH$UL, Underlying sales grew 5.8%, up from 3.1% a year earlier and above company-compiled estimates. The increase was driven primarily by higher volumes, while pricing contributed just 0.2%.
Beauty and wellbeing sales… pic.twitter.com/EqU76Iqary
— Wall St Engine (@wallstengine) July 28, 2026
The headline figure was volume expansion of 5.5%, representing the corporation’s most impressive volume quarter in over a decade, driven by robust performance in markets including India, Indonesia and throughout Latin America.
The company has revised its full-year underlying sales growth expectations to fall within its 4%-6% multi-year target band, elevated from previous guidance indicating growth at the lower threshold. Volume growth projections have also been increased to approximately 3%, up from a minimum of 2%.
Looking toward the second half, management is projecting 4%-5% sales expansion, primarily driven by pricing actions. The company reaffirmed expectations for moderate improvement in full-year underlying operating margin from the 20% recorded in 2025.
Unilever’s Power Brands portfolio, representing 78% of overall revenue, achieved 6% underlying sales growth during the first half. This portfolio encompasses well-known names such as Axe, Vaseline, Dove and Cif.
Marketing expenditure represented 16.1% of revenue in Q2, with significant investment associated with the FIFA World Cup. During an investor call, CFO Srinivas Phatak emphasized: “The days of underinvesting in our businesses are over.”
Home Care emerged as the strongest division with 9.1% underlying sales expansion. Beauty & Wellbeing posted 8.1% growth while Personal Care contributed 5.9%.
Foods represented the obvious underperformer. Sales growth registered at merely 0.2%, constrained by weakness in developed markets and intensifying competition in U.S. condiments. Volumes in the Foods segment actually contracted 0.1%.
Unilever is currently executing the separation of its Foods business to create a combined entity with American spice manufacturer McCormick, valued at approximately $65 billion. The transaction is anticipated to close by mid-2027 at the latest.
Barclays analyst Warren Ackerman characterized the results as “further evidence that Unilever’s home and personal care portfolio can deliver growth well above many global staples peers,” noting that confidence in post-transaction growth is strengthening.
Morgan Stanley described the results as an unambiguous “beat and raise,” highlighting that volume growth of 5.5% exceeded expectations by more than double. The firm noted that gross margin experienced some pressure from commodity inflation.
Bernstein analyst Callum Elliott suggested the better-than-anticipated figures “seem likely to drive a significant uptick in positivity today.”
CFO Phatak affirmed the Foods separation is advancing smoothly: “We’re on course to getting this merger finalised.”
The post Unilever (ULVR) Stock Soars 6.8% Following Exceptional Q2 Results and Upgraded Guidance appeared first on Blockonomi.
