Must read: earnings push and pull FTSE 100, BAE Systems

ii’s head of investment rounds up the morning’s big news.

30th July 2025 08:59

by Victoria Scholar from interactive investor

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GLOBAL MARKETS 

The FTSE 100 has opened lower, dragged down by Taylor Wimpey (LSE:TW.) and HSBC Holdings (LSE:HSBA) which have plunged by more than 4% each after they both delivered disappointing updates. Rio Tinto Ordinary Shares (LSE:RIO) is another stock under pressure, down over 2% after reporting weak first half earnings. Stemming an even steeper slide is Sage Group (The) (LSE:SGE), up around 4.5% after its earnings guidance was well received by the markets. 

Crossing the Atlantic, US futures are pointing modestly higher with the Nasdaq in focus ahead of earnings from Meta Platforms Inc Class A (NASDAQ:META) and Microsoft Corp (NASDAQ:MSFT). Plus there’s no shortage of economic events to dig into with US Q2 GDP data and the Federal Reserve interest rate decision out later today. The central bank is widely anticipated to keep rates on hold with the dollar weakening ahead of the announcement after four days of gains.

BAE SYSTEMS 

BAE Systems (LSE:BA.) reported first half sales of £14.6 billion, up 11% and ahead of expectations for around £14.5 billion while adjusted EBIT came in at £1.55 billion, also topping forecasts. The aerospace and defence group also upgraded its full-year earnings guidance amid the ‘heightened global threat environment.’ 

European defence companies have performed well under Trump’s presidency and amid the backdrop of global instability with the wars in Ukraine and the Middle East. European countries including the UK have been planning higher defence spending to beef up military capacity as they come to realise that the US is no longer there in the way it once was to provide support to an ally in crisis. 

Although there were some concerns earlier in the year that the investor enthusiasm around BAE Systems was starting to falter, given its exposure to long term contracts, today’s update proves there is still reason to be optimistic towards the stock, with the company achieving double digit percentage top and bottom line growth. BAE saw strong sales growth across its sectors including air, maritime, platforms & services and electronic systems. 

Despite some weakness today amid the risk-off market mood, BAE is among the best performing stocks on the FTSE 100 over the past six months, up over 40% and it is up around 55% so far this year. Unsurprisingly, the consensus recommendation is a buy on the stock from the analyst community with little in today’s report to suggest that will change.

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Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.

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