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%, while the mid-cap FTSE 250 advanced 0.5%. Unilever and Croda each rose about 8%, GSK gained 3.5%, and Barclays fell 4.8%.

Unilever Raises Its 2026 Outlook

Unilever led the FTSE 100 after reporting 5.8% underlying sales growth for the second quarter, including 5.5% volume growth.

The consumer goods group described the period as its strongest quarterly volume performance in more than a decade. It raised its 2026 outlook and now expects full-year underlying sales growth of between 4% and 6%.

Unilever also reported first-half turnover of €25.6 billion and an underlying operating margin of 20.3%. Its Power Brands, which include Dove, Persil and Vaseline, generated underlying sales growth of 6%.

GSK and Croda Add Support

GSK gained after reporting second-quarter sales of £8.4 billion, up 5% from the previous year at both actual and constant exchange rates.

Core operating profit increased to £2.8 billion, while core earnings per share rose 9% to 50.5p. Growth in speciality medicines and vaccines helped offset weaker sales of general medicines.

The pharmaceutical group maintained its full-year guidance and announced a programme targeting £1.9 billion in annual savings by 2029 to support greater investment in research and development.

Croda also advanced after reporting 9% organic sales growth during the second quarter. First-half organic sales increased 4.6%, while adjusted operating profit rose 6.7% to £155.8 million.

The speciality chemicals company kept its full-year outlook unchanged despite geopolitical and economic uncertainty.

Barclays Falls Despite Higher Income

Barclays moved against the wider market, falling 4.8% after publishing its first-half results.

The bank reported higher income, but investors focused on rising costs, planned investment spending and the performance of its UK operations. Expectations were already elevated following strong results from several major US banks.

Lloyds Banking Group fell 1.4% ahead of its results, while NatWest declined 2.4% before its scheduled update.

The cautious reaction comes as major institutions continue assessing the risk of a $165 billion shift from equities into bonds, which could increase pressure on highly valued shares.

Chip Concerns Weigh on Technology Shares

Technology stocks remained under pressure as investors questioned the pace and financing of artificial intelligence infrastructure spending.

South Korean semiconductor companies Samsung Electronics and SK Hynix recorded sharp declines, while Dutch chip-equipment manufacturer ASML also fell.

The weakness contrasts with the earlier rally that followed a strong earnings update from Micron Technology.

Investors are increasingly examining whether demand can justify the capital moving into the sector. Nvidia’s $20 billion bond financing illustrates the scale of funding supporting the AI infrastructure build-out.

Attention now turns to results from Lloyds and NatWest, which will show whether the negative response to Barclays reflects company-specific concerns or wider caution towards UK banking shares.