Reckitt Reports Better-Than-Expected First-Half Profit and Unveils £500 Million Share Buyback

Reckitt Benckiser (LSE:RKT) delivered stronger-than-expected first-half 2026 earnings, reporting adjusted operating profit ahead of market forecasts while announcing a new £500 million share buyback programme aimed at enhancing shareholder returns.

Adjusted operating profit declined 15% year over year to £1.46 billion, comfortably exceeding the S&P Global Visible Alpha consensus estimate of £1.40 billion. Adjusted diluted earnings per share reached 152.1 pence, also beating analyst expectations of 140.7 pence.

Revenue for the period decreased 8.1% to £6.41 billion, primarily reflecting the disposal of the Essential Home business. Adjusted operating margin narrowed by 100 basis points to 23.6%, although management noted that profitability was stronger than the company’s own internal expectations.

Alongside the results, Reckitt announced a share repurchase programme of up to £500 million, which is scheduled to be completed over the next 12 months. The company also increased its interim dividend by 5% to 88.6 pence per share.

Underlying trading remained resilient despite the headline revenue decline. Like-for-like net revenue increased 2.6% during the first half, with momentum improving in the second quarter as growth accelerated to 4.2%. The company reported stronger performance across all product categories and geographic regions.

Emerging Markets continued to lead growth, with like-for-like sales rising 8.5% in the first half. China delivered another quarter of double-digit growth, while India recorded high-single-digit gains. Trading also improved across developed markets, with Europe showing sequential progress and North America returning to positive growth during the second quarter.

Looking ahead, Reckitt reaffirmed its guidance for 2026, continuing to expect Core Reckitt like-for-like revenue growth of between 4% and 5%, alongside an adjusted operating margin in the range of 24.9% to 25.6%.

The company said lower oil prices, continued productivity initiatives and a stronger product mix in the second half are expected to support profitability, helping offset ongoing macroeconomic uncertainty and elevated raw material costs.