Equities Update: Micron, Kingfisher, TUI, Smiths Group…

Micron earnings preview, September 23, 2025

Lale Akoner, global market analyst, says: “We expect a strong earnings report from Micron today thanks to accelerating momentum across memory markets. A tighter supply backdrop, driven by AI-fuelled demand for high-bandwidth memory (HBM) is strengthening the pricing power and lift margins into 2026. That backdrop sets the stage for stronger margins and healthy revenue growth, with Micron positioned as one of the key players in the AI build-out. The company had already signalled stronger-than-expected August results, underscoring robust execution and visibility.

“Investors are watching the next wave of AI infrastructure, where Micron’s strength in HBM (high-bandwidth memory, the advanced chips that feed data to AI models) is creating multi-year growth opportunities. At the same time, DRAM (the main type of memory used in PCs and servers) and NAND (the storage chips used in smartphones, laptops, and other devices) are showing signs of recovery thanks to tighter supply and rising demand. Confidence is also building around 2026, with Micron indicating it can sell out next year’s HBM supply. With AI infrastructure spending set to accelerate into 2026, Micron’s setup into earnings looks favourable, hence our positive view on both fundamentals and valuation.”

Kingfisher: “The investment case for Kingfisher has been given a solid boost”

TUI’s package model packs a profitable punch

Mark Crouch, market analyst for eToro, says: “Despite a turbulent macro backdrop, TUI’s latest trading update strikes a notably upbeat tone. The group remains on track to deliver its upgraded FY25 earnings target, with robust summer bookings suggesting that price-conscious consumers still prioritise sun and certainty over inflation anxiety and another summer in the garden.

“TUI’s integrated model of bundling flights, hotels and transfers continues to offer resilience, insulating it from the volatility that often clips the wings of standalone carriers. Winter bookings are already ramping up, another encouraging sign that demand is holding firm, and the Oman hotel deal adds a dose of long-haul ambition and brings in a new strategic shareholder in OMRAN.

“However, with oil prices lightening the load on margins, TUI’s share price hasn’t exactly taken off. Investors may have hoped for more altitude there. Still, TUI’s ability to fill boats, beds, planes and sunloungers suggests its all-in-one model is weathering the economic clouds better than most.”

Smiths Group FY25: A Lesson in Industrial Resilience

Lale Akoner, global market analyst, says: “Smiths Group’s results highlight a broader theme in today’s market: industrial strength in a slower-growth world. While global manufacturing has been mixed, Smiths delivered nearly 9% organic growth and steady margin expansion. This is due to its exposure to structural demand in aerospace, energy efficiency, and infrastructure upgrades, sectors proving resilient despite economic headwinds.

“Guidance for FY26 points to slower growth of 4-6%, showing momentum is likely to cool. That puts more weight on strategic moves, namely the sale of Interconnect by year-end and progress on Detection, to unlock value. The company is following a playbook we’ve seen from GE and Siemens, slimming down and focusing on core businesses where it holds real pricing power. In a higher-rate environment, investors reward firms that generate cash and return it, not empire-build.

“Overall, Smiths delivered results in line with high expectations,  strong organic growth, margin expansion, and cash conversion. The Interconnect sale and portfolio focus remain the real catalysts, with cash returns supporting the story. The challenge now is proving that Smiths can sustain growth beyond FY25 and turn portfolio reshaping into a lasting re-rating catalyst.”