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Highlights
Babcock (LON:BAB) jumps after announcing stronger operating and a share plan
WPP (LON:WPP) slides following a downgrade and revised price outlook from a major bank
Pearson (LON:PSON) sees dip amid expectations of subdued first-half growth
Defence engineering company Babcock (LON:BAB), listed on the FTSE 100, recorded notable gains following a sharp increase in annual operating and the announcement of a significant share. The group highlighted that its underlying operating margin target may be achieved ahead of schedule, citing ongoing global political tensions as a driver of increased defence spending.
The company outlined ambitions for a stronger medium-term performance and described current conditions as a ‘new era for defence.’ Babcock’s update included figures pointing to growth across key segments and reaffirmed confidence in future delivery. The firm’s air tanker services, including its Voyager aircraft programme, continue to support operational scale on the apron.
The introduction of a share repurchase programme was also announced. The move came as the firm’s share price approached levels not seen since the early part of the last decade. Babcock noted that returning capital to shareholders forms part of its broader financial strategy.
WPP Drops Following Downgrade
Advertising group WPP (LON:WPP) declined during the session after being downgraded by Barclays, which also revised its price estimate for the stock. The firm’s presence in the FTSE 100 left it among the index's most impacted names as a result.
The reassessment of WPP’s positioning reflects a more cautious stance on the advertising sector amid evolving market conditions. The company has faced headwinds due to client budget adjustments and structural shifts in marketing spend. The revised view weighed on sentiment, pushing the stock lower on the day.
Pearson Slides on Growth Outlook
Education publisher Pearson (LON:PSON), another constituent of the FTSE 100, edged down after JPMorgan Cazenove reduced its forecast for the stock’s performance. While the bank maintained its favourable stance, it projected muted growth for the first half of the financial year, with expectations for acceleration later on.
Pearson continues to navigate transitions in the academic and digital learning sectors. Ongoing efforts to pivot to a more tech-focused model remain central to its strategy, though initial returns are expected to build gradually over the course of the year.
FTSE 100 Dips Amid Mixed Company News
The FTSE 100 index moved lower overall, reflecting broader uncertainty across several sectors. Mixed updates from key constituents such as Babcock, WPP, and Pearson contributed to the afternoon dip, with investor reactions shaped by both earnings outcomes and strategic forecasts.
While Babcock's performance lifted sentiment in the defence segment, caution persisted elsewhere on the index. The day’s activity highlighted sector divergence within the FTSE 100, particularly as macroeconomic and geopolitical themes continue to influence corporate updates.
