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“The FTSE 100 has its recent record highs in its sights again as global markets shake off the latest tariff turmoil,” says AJ Bell Investment Director Russ Mould.
“Strong corporate results are helping as they show businesses can still thrive despite the turbulent backdrop.
“Smith & Nephew seems as if it’s been on the waiting list for a recovery for a long time but its latest results suggest it may now firmly be on the mend. Strong growth and rising profitability and cash flow, as well as a meaningful share buyback, are all big ticks in the box for the company.
“Fresnillo has got a big boost from higher precious metals prices in 2025 as investors have sought out gold’s safe haven attributes amid significant economic and geopolitical uncertainty. However, its latest results show the company is also doing well operationally and keeping a tight rein on costs, allowing its shares to sparkle this morning.”
BP
“Having already teased these quarterly results last month, the reaction to BP beating expectations is understandably fairly muted.
“However, as the company looks to bat off pressure from activist shareholder Elliott and convince the wider market on its recent shift in strategy, updates like today’s are helpful for management credibility.
“Combined with the major oil discovery in Brazil announced earlier in the week, it helps to convince that the company is serious about its renewed commitment to hydrocarbons. Improving performance may also dampen down some of the speculation around BP being absorbed by a rival.
“Investors will be pleased to see there is no resting on its laurels. After the poor reception afforded BP’s big investor day in February, it is set to conduct another review under new chair Albert Manifold.
“Despite already announcing a round of significant cost cutting, further efficiencies will be sought. At present BP still has a modestly larger workforce than Shell – based on the companies’ respective last reported headcounts – despite being a significantly smaller business in terms of its valuation and annual revenue.
“Separately, the company may get questions on whether or not the planned programme of disposals will be put on hold while this new review takes place.”
Diageo
“Investors are in something of a quandary with Diageo. They need to determine if the downturn in alcohol consumption is a short-term effect of squeezed disposable income or the start of a broader trend away from drinking altogether for health and lifestyle reasons.
“There is certainly little to toast in Diageo’s full-year results – if recently departed CEO Debra Crew had not already left she would have been under renewed pressure had she been the one serving up these numbers.
“The decision to take significant impairments may well be a way of giving her permanent successor, when appointed, the best possible opportunity to succeed.
“There are some positive signs which investors are seizing on – with the company currently seeing organic growth in four out of its five big markets. The exception being Asia Pacific – a region which has been important to recent growth both for Diageo itself and the wider drinks industry.
“Guinness remains very successful, and significantly the alcohol-free Guinness Zero has been an important component of that. This may quieten previous suggestions this part of the business might be sold so the company can focus exclusively on spirits.
“Sales of some brands may be on the agenda for any incoming new boss given a need to get the balance sheet in better shape – although the company will not want to lose any of its crown jewels.”
Palantir Technologies
“The sensitive nature of Palantir’s work for government agencies and defence clients means inner workings of the business can often be quite opaque but the headline numbers continue to sustain its gravity-defying run so far in 2025.
“As with many big technology businesses, AI is the big driver and that has helped the company top $1 billion in quarterly revenue for the first time and boost forward guidance.
“Palantir has benefited from significant US government contracts since the Trump administration took office with an agenda of delivering significant governmental efficiencies.
“For Palantir – the triple-digit earnings multiple its shares enjoy means it will need to continue growing fast if the current momentum is to continue.”
Russ Mould: Investment Director
Russ Mould is AJ Bell's Investment Director. He has a Master's degree in Modern History from the University of Oxford and more than 30 years' experience of the capital markets.
He started out at Scottish...
