Unilever Share Price Forecast Suggests Modest FMCG Sector Gains Into 2026
Unilever’s share price is projected to remain relatively stable through April 2026, with modest growth potential reflecting wider trends in the fast-moving consumer goods (FMCG) sector. Analysts estimate that a £1,000 investment in Unilever shares today could grow to roughly £1,145 over the next 12 months, based on a projected annual return of 14.5% including dividends — indicating steady, if unspectacular, performance.
Unilever’s consistent dividend yield, currently at 3.8%, continues to appeal to income investors amid macroeconomic uncertainty. In a sector reliant on brand strength, distribution efficiency, and pricing power, the company’s performance aligns with broader trends where defensive stocks are showing relative resilience. However, challenges around volume growth and margin pressures remain.
The latest quarterly results underscore these dynamics. In Q1 2024, Unilever reported underlying sales growth of 4.4%, with a 2.2% volume increase—suggesting that price hikes are stabilizing and consumer volumes are slowly recovering in key markets. CEO Hein Schumacher, who assumed the role in July 2023, has intensified focus on performance improvement initiatives. The company’s new strategy includes shedding non-core assets, such as the recent spin-off of its ice cream division into a standalone business, and prioritizing high-growth segments such as personal care and health & wellbeing.
Nonetheless, Unilever’s high exposure to emerging markets represents both a growth opportunity and a risk. While these markets account for over 50% of the company’s revenues, fluctuations in currency and political instability can impact profitability. Margin recovery efforts are likely to face headwinds from higher input costs and slower consumer spending recovery in some regions, highlighting the delicate balance FMCG companies must navigate in 2024 and beyond.
Valuation-wise, Unilever trades at roughly 17 times forward earnings, slightly below its long-term average. This suggests the stock is not overbought, but neither is it a strong value play — placing it firmly in the low-growth, high-yield category that appeals to long-term FMCG investors focused on stability rather than aggressive capital appreciation.
While not poised for explosive growth, Unilever’s strategic refocus, reliable payout, and resilient portfolio suggest it will remain a core defensive