A raft of the UK’s largest stocks have reported second-quarter and half-year earnings in July and early August, among them AstraZeneca AZN and HSBC HSBA.
Earnings season saw the FTSE 100 breach the 9,000 points mark, taking the UK index to another record high, despite the ongoing impact of President Donald Trump’s tariff policy.
There were also saw some substantial daily share price moves, with Rentokil RTO and Rolls-Royce RR. each rising 10% on the day their earnings were announced.
Kathleen Brooks, research director at XTB says this earnings season has been positive overall, but UK companies are still operating under significant uncertainty that may not have been translated into earnings just yet.
As she explains: “Tariffs were not in place in Q2, not to the same extent as they will be once we get past Aug. 7. It is going to be the back end of the year that we start to see [their impact].” So far, UK companies have demonstrated resilience, she adds.
Stocks Under Morningstar Coverage With a Fair Value Change
What Did UK Stocks Report During Earnings Season?
Lloyds Banking Group LLOY
The UK high street bank reported a pre-tax profit of £3.5 billion for the first half of the year, an increase of 5% year on year.
- Morningstar fair value maintained at 78p, shares fairly valued.
- Year to date the shares are up 47%.
Lloyds Banking Group share price jumped 7% on Aug. 4 after a UK Supreme Court ruled on car finance compensation.
Reckitt Benckiser RKT
For the first half of the year, the Cillit Bang maker saw its profit before tax drop to £1.31 billion, down from the £1.52 billion the same time last year.
- Morningstar analyst fair value estimate held at £65, shares undervalued.
- Year to date Reckitt Benckiser stock is up 13.97%.
RELX RELX
The information and analytics company saw its profit before tax reach £1.51 billion in the first of the year, a slight increase on the figure recorded at this time last year.
- Morningstar fair value estimate held at £39, shares undervalued.
- Year to date RELX is up 5.92%.
NatWest NWG
The UK bank posted a pre-tax profit of £3.6 billion in the first half of the year, an 18% increase year-on-year.
- Morningstar fair value estimate held at 480p, shares overvalued.
- Year to date the stock has returned 30.17%.
AstraZeneca AZN
The Anglo-Swedish pharmaceutical giant, and the UK’s largest stock, reported a significant jump in its pre-tax profit for both H1 and Q2.
- Morningstar fair value estimate held at £124, shares undervalued.
- Year to date the stock has returned 5.25%.
GSK GSK
The UK pharmaceuticals stock reported a profit before tax of £1.8 billion in Q2, a 37% increase in currency exchange rate terms from the previous quarter.
- Morningstar fair value estimate held at £22, shares undervalued.
- Year to date the stock returned 2.28%.
BAE Systems BA.
Aerospace, defence, and security company, BAE Systems, had a strong first-half of the year.
The company reported a pre-tax profit of £1.19 billion in the first half of the year, up from £1.16 billion in H1 2024.
- Morningstar fair value estimate held at £22.50, shares undervalued.
- Year to date the stock has returned 59.98%.
HSBC HSBA
On July 30 HSBC posted disappointing H1 2025 results: the company’s pre-tax profit fell to $15.8 billion from $21.5 billion in 2024.
- Morningstar fair value estimate held at £10, shares fairly valued.
- Year to date the stock has returned 18.51%.
Shell SHEL
The oil and gas giant reported a decline in earnings in Q2 2025. The company reported a drop in adjusted earnings to $4.2 billion, down from the $6.2 billion it recorded in Q2 2024.
- Morningstar fair value estimate held at £27.60, shares fairly valued.
- Year to date Shell shares are up 7%.
Unilever ULVR
The multinational consumer goods company saw its pre-tax profit drop by 8.5% from EUR 5.56 billion in H1 2024 to EUR 5.09 billion in H1 2025.
- Morningstar fair value estimate held at £49.40, shares undervalued.
- Year to date Unilever shares are down 2.29%.
Rolls Royce RR.
Rolls-Royce’s pre-tax profit jumped to £1.68 billion in H1 2025, up from last year’s figure of £1.035 billion.
- Morningstar fair value estimate raised to £11.20, shares fairly valued.
- Year to date the stock is up 86.41% trading at £10.96.
British American Tobacco BATS
British American Tobacco saw a slight decline in its pre-tax profit for the first half of the year. The company reported a figure of £5.57 billion for H1 2025, a 0.5% drop on levels the year prior.
- Morningstar fair value estimate raised to £41.84, shares fairly valued.
- Year to date the stock is up 42.65%.
Rentokil Initial RTO
Rentokil Initial’s pre-tax profit for H1 2025 dropped by 8.7% to USD 418 million from $459 million earned in the previous year.
- Morningstar fair value estimate held at 490p, shares undervalued.
- Year to date Rentokil Initial shares are down 12%.
Diageo DGE
Guinness maker Diageo recorded a decline in its profit levels before taxation of USD 3.5 billion for the year ended June 2025. This is down on levels reached in the previous year of USD 5.46 billion.
- Morningstar fair value estimate lowered to £24.40 from £25.90.
- Year to date Diageo stock is down 27.29%.
BP BP.
The oil and gas “supermajor” posted a pre-tax profit for Q2 2025 of $2.8 billion, down on the previous year’s level of $6 billion.
This comes after the company made its biggest oil and gas discovery in 25 years off the coast of Brazil and announced a strategic review along with its earnings.
- Morningstar fair value estimate maintained at 445p, shares undervalued.
- Year to date BP shares are up around 3%.
