Unilever and GSK Lift FTSE 100 as Barclays Falls

London stocks closed higher on Tuesday as strong results from Unilever, GSK and Croda outweighed weakness in banking and technology shares. The FTSE 100 gained 0.8% and the mid-cap FTSE 250 rose 0.5%, with Unilever and Croda each up about 8%, GSK up 3.5%, and Barclays down 4.8%.

Unilever Raises Its Full-Year Outlook

Unilever led the index after reporting 5.8% underlying sales growth for the second quarter, including 5.5% volume growth, a period the consumer goods group called its strongest quarterly volume performance in more than a decade. The company raised its 2026 outlook and now expects full-year underlying sales growth between 4% and 6%.

Unilever also posted first-half turnover of €25.6 billion and an underlying operating margin of 20.3%, with its Power Brands, including Dove, Persil and Vaseline, delivering underlying sales growth of 6%.

GSK and Croda Add Further Support

GSK gained after posting second-quarter sales of £8.4 billion, up 5% year on year at both actual and constant exchange rates. Core operating profit rose to £2.8 billion, and core earnings per share increased 9% to 50.5p, with growth in specialty medicines and vaccines offsetting weaker sales of general medicines. The pharmaceutical group held its full-year guidance and announced a plan targeting £1.9 billion in annual savings by 2029 to fund additional research and development.

Croda advanced on 9% organic sales growth for the quarter, with first-half organic sales up 4.6% and adjusted operating profit up 6.7% to £155.8 million. The specialty chemicals company kept its full-year outlook unchanged despite geopolitical and economic uncertainty.

Barclays Drops Despite Higher Income

Barclays moved against the wider market, falling 4.8% after publishing first-half results. The bank reported higher income, but investors focused on rising costs, planned investment spending and the performance of its UK operations, with expectations already elevated after strong results from several major US banks. Lloyds Banking Group fell 1.4% ahead of its own results and NatWest dropped 2.4% before its scheduled update.

The cautious reaction comes as major institutions continue weighing the risk of a potential $165 billion shift from equities into bonds, a move that could add pressure to highly valued shares across sectors.

Chip Sector Weakness Weighs on Technology Stocks

Technology shares stayed under pressure as investors questioned the pace and financing behind artificial intelligence infrastructure spending. South Korean semiconductor firms Samsung Electronics and SK Hynix posted sharp declines, and Dutch chip-equipment maker ASML fell as well, a reversal from the earlier rally that followed a strong earnings update from Micron Technology.

Investors are increasingly testing whether demand justifies the capital pouring into the sector, with Nvidia's $20 billion bond financing illustrating the scale of funding behind the AI infrastructure buildout. Attention now turns to Lloyds and NatWest's upcoming results, which should show whether the market's reaction to Barclays reflects company-specific concerns or broader caution toward UK banking stocks.