Why Persimmon shares responded positively to half-year results
Shares are trading near multi-month highs after this well-received update, although business is still challenging. ii's head of investment assesses the numbers.
6th August 2026 08:35
by Victoria Scholar from interactive investor
Persimmon (LSE:PSN) said it is on track for completions of around 12,500 homes in the full year, at the upper end of previous guidance, while underlying profit before tax is expected to come in line with market expectations.
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The housebuilder delivered a 10% increase in underlying first-half operating profit and a 13% rise in new home completions year-on-year. However, Persimmon described the market as challenging and said it expects additional inflationary pressures next year. Buyer enquiries were also softer in July, potentially amid the quieter summer season.
Persimmon has successfully navigated an undeniably difficult market backdrop to issue a rosy outlook and achieve a solid earnings performance. 2026 has not played out for the sector as many investors would have hoped at the start of the year, before the Iran war began when interest rates and inflation were expected to ease.
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Instead, Persimmon has been dealing with a cocktail of headwinds from higher for longer interest rates, reduced mortgage affordability and softer demand, as well as build cost inflation and higher energy prices.
The stock has rightfully earned its position near the top of the FTSE 100 today, rallying close to 4%, lifting rivals like Barratt Redrow (LSE:BTRW) with it. Shares however remain lower by 15% year-to-date, underperforming the large cap index.
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