Unilever PLC (UL.US) reported fourth-quarter 2025 sales that surpassed market expectations, driven by robust performance of its premium beauty and home care products in key markets such as the United States and India. According to the financial results, Unilever's Q4 sales reached €12.6 billion, a decline of 2.7% year-over-year. Underlying sales growth was 4.2%, exceeding analyst estimates of 4%. Volume increased by 2.1% during the quarter, while price growth contributed 2.0%.

By business segment: Beauty & Wellbeing reported sales of €3.2 billion, with underlying sales growth of 4.7%, volume growth of 2.8%, and price growth of 1.8%. Personal Care segment sales were €3.3 billion, with underlying sales growth of 5.1%, volume growth of 0.6%, and price growth of 4.5%. Home Care sales amounted to €2.8 billion, with underlying sales growth of 4.7%, volume growth of 4.0%, and price growth of 0.6%. The Nutrition segment posted sales of €3.3 billion, with underlying sales growth of 2.3%, volume growth of 1.3%, and price growth of 1.0%.

This marks Unilever's first earnings report since the spin-off of its ice cream business, which included brands such as Ben & Jerry's. It also coincides with CEO Fernando Fernandez nearing his one-year anniversary in the role. Fernandez is continuing the transformation plan initiated by his predecessor, aiming to streamline the sprawling conglomerate by divesting brands lacking international scale and focusing on driving growth for the multinational's most successful products.

Investors have welcomed this strategy, with Unilever's stock rising more than 12% year-to-date as of Wednesday's market close. Looking ahead, Unilever anticipates that 2026 underlying sales growth will be at the "lower end" of its multi-year target range of 4% to 6%, aligning with analyst expectations. The company also announced a share buyback program of €1.5 billion (approximately $1.8 billion), set to commence in the second quarter.

Analysts are divided on whether Unilever can sustain its current positive momentum. A Barclays analyst team led by Warren Ackerman suggested in a report that growth in emerging markets—including India, Indonesia, Brazil, and China—could materialize simultaneously. However, Deutsche Bank analyst Tom Sykes recently downgraded his rating on Unilever stock to "Hold," stating that the company is trading at "historically high" levels compared to peers and has limited room for further growth.