Equities Update: Bunzl, Smith & Nephew, Fresnillo, Greggs, CrowdStrike…

Bunzl’s second half lift offers investors some relief

Mark Crouch, market analyst for eToro, says:“After a couple of bruising years for the share price, Bunzl investors were handed a steadier, if hardly sparkling, set of results in the company’s latest update. Revenue rose 3 per cent at constant exchange rates, largely thanks to acquisitions, while underlying growth remained subdued, though the pick-up in the second half suggests trading conditions improved as the year progressed.

“Profitability was softer, with adjusted operating profit down 4.3 per cent and margins slipping to 7.7 per cent. However, the second-half margin decline narrowed markedly, helped by operational improvements in North America, stabilisation in Continental Europe and expansion in the UK & Ireland. Management’s interventions in its key North American distribution arm, including leadership changes and cost controls, appear to be paying off.

“Cash generation remains robust, funding both a modest dividend increase and a £200m buyback. However, with 2026 guidance pointing to moderate growth and slightly softer margins, sentiment is unlikely to turn on a sixpence. Still, investors may take comfort that, after drifting off course, the business appears to be finding firmer ground.”

Smith & Nephew completes turnaround plan, but risks remain

Adam Vettese, market analyst for eToro, says:“Smith & Nephew’s results mark a solid win for their 12 Point Plan turnaround, with underlying revenue up 5.3% (7% excluding China), trading profit surging 15.5% at a 19.7% margin, and free cash flow more than doubling to $840m.

“Cash generation impresses at 102% trading conversion, funding buybacks amid healthy orthopaedics and sports medicine demand.

“However, reported operating profit missed some forecasts, hit by a $159m non-cash inventory charge from portfolio clean up, while growth remains modest versus peers. 2026 guidance eyes 8% organic trading profit growth, but pricing, tariffs, and China risks loom.

“Shares have dipped this morning but had a strong start to 2026 otherwise. Further upside hinges on the new RISE strategy delivering 6-7% annual growth to 2028.”

Fresnillo’s silver lining covering falling volumes

Adam Vettese, market analyst for eToro, says:“Fresnillo’s results are a triumph of price over production, delivering record earnings amid the silver bull market. Adjusted EBITDA soared 81%, profit before tax doubled to $2.08bn, and net cash swelled to $1.92bn, fuelling a bumper $950m dividend, a huge shareholder windfall.

“Yet beneath the gloss, volumes tell a tougher story with silver output dipped 14% and gold 5%, with 2026 guidance trimmed further. Cost controls shone, but mine challenges persist, from grades at Fresnillo to the Silverstream termination loss.

“Silver’s rocket ride with prices still elevated near $90/oz despite volatility explains the leverage, but also the risk. Some punchy price targets as much as $150 have been mooted, underscoring demand from EVs and solar, yet bubble whispers loom. That being said, current geopolitical tensions in the Middle East could be a further catalyst for precious metal demand.

“After a mammoth run, shares are in the red this morning with many investors sitting on outsized gains looking to lock in profits.”

Greggs report rising sales despite margins still feeling the heat

Mark Crouch, market analyst for eToro, says:“After a period that saw cost pressures take a big bite out of profits, Greggs has served up a resilient, if hardly indulgent, set of results this morning. Total sales rose 6.8 per cent in 2025, with like-for-like growth of 2.4 per cent in company-managed shops, underlining the chain’s continued ability to draw in cash-strapped consumers in a market where value still trumps frills.

“Yet profits were leaner. Underlying operating profit slipped 4 per cent, while earnings per share fell more than 10 per cent as wage inflation and heavy investment in supply chain capacity weighed on margins, a reminder that even a well-filled bakery can see its takings thinned when costs rise faster than prices.

“For years, Greggs could seemingly do no wrong, its shares rising as reliably as one of its sausage rolls in the oven. The past couple of years, however, have been much tougher, input cost spikes, ambitious capital spending and a softer consumer environment have taken some of the heat out of a once high-flying stock.”

CrowdStrike: A Key Test of Cybersecurity Demand

Lale Akoner, global market analyst, says: “CrowdStrike reports earnings Tuesday, with investors looking for signs that growth remains steady as companies step up cyber defences. Rising geopolitical tensions and expanding global supply chains are keeping security spending resilient, especially for larger platforms that can help protect across multiple threats.

“The key figure to watch is net new recurring revenue. Expectations are around $300 million for the quarter. A result meaningfully above that would signal that demand remains strong despite tighter IT budgets. Equally important is next year’s outlook. Management has previously pointed to at least 20% growth. If that target holds, or improves, it tells the market that customers are still expanding contracts and not just renewing them.

“The company is also pushing deeper into AI-related security, aiming to protect businesses as more work moves online and into cloud-based tools.

“Overall, this earnings report comes after a choppy period for high-growth tech stocks. We think the focus is straightforward: Are large enterprises and government agencies still spending, and is CrowdStrike converting pipeline into revenue? If growth meets or exceeds expectations and guidance stays firm, the investment case remains intact. If not, valuation will come under pressure.”