Shares of Unilever jumped +6.2% to $65.19 in pre-market trading as the company released first-half 2026 results that blew past its own prior guidance and marked a clear acceleration from an already solid start to the year.

  • Q2 Growth Came In Much Hotter Than Investors Expected. Unilever posted first-half underlying sales growth of 4.8%, with a dramatic Q2 acceleration to 5.8% — driven almost entirely by volume at 5.5%. That matters because it shows consumers are buying more Unilever products, not just paying higher prices. Q1 had delivered 3.8% underlying sales growth with 2.9% volume — solid but modest compared to Q2's leap. Power Brands, which account for 78% of turnover, led the way at 6.0% sales growth and 5.4% volume growth.

  • The Company Upgraded Its Full-Year Outlook. Following the strong first half, Unilever now expects full-year underlying sales growth within its 4% to 6% guidance range — no longer stuck "at the bottom end" — with roughly 3% volume growth. That's a meaningful shift: at Q1, management had guided for "the bottom end" of that range with "at least 2%" volume. CEO Fernando Fernandez signaled confidence despite an uncertain macroeconomic backdrop.

  • Margins Are Expanding While the Company Keeps Spending on Brands. Underlying operating margin rose to 20.3%, up 10 basis points (hundredths of a percentage point), with gross margin at 46.8% and marketing investment at 16.1% of sales.

A productivity program launched in 2024 delivered €750 million of its €800 million savings target by end of Q1, running ahead of schedule. The combination of expanding profits and reinvesting in advertising is exactly the formula investors want from a consumer staples company.

  • The Foods Separation Is Moving Forward — and That Changes the Investment Story. McCormick unveiled the planned operating model and executive team for its $44.8 billion combination with Unilever Foods, with the deal expected to close by mid-2027.

For Unilever, shedding its slower-growing food brands lets it focus on faster-growing personal care and beauty.

Capital returns remain aggressive: a ~60% dividend payout ratio and €6 billion in share buybacks through 2029. The open question is whether a leaner, beauty-and-personal-care-focused Unilever deserves a higher stock price relative to its earnings — or whether execution risks from the separation and rising input costs cap the upside.