5 stocks to watch in May

Earnings season is now in full swing in America, and lots of UK companies will follow suit in May. Here are some of the key names to watch out for. 

This article is not a recommendation to buy or sell an investment; it is purely insight into some of the companies that announce results over the next month.

Burberry 

Full-year results: Thursday 14 May 

Burberry regained its place in the FTSE 100 late last year. This followed a tough period for the fashion house. An attempt to go more upmarket coincided with a nasty slowdown in the luxury sector. Sales collapsed in 2024 and the company tumbled into a loss, prompting the swift departure of its chief executive. 

Things seem to have turned a corner, however. A January update  revealed an uptick in sales in China and Asia Pacific - particularly among Gen Zs. The company has doubled down on its ‘hero’ products, including its famous trench coats and scarves. It is also emphasising its Britishness, featuring the likes Olivia Coleman and Kate Winslet in a recent advertising campaign. 

Burberry is due to report its full-year results on 14 May. It expects revenue to be roughly flat year-on-year at £2.4bn. However, adjusted profits are forecast to rebound to £154m versus £26m last year. All these numbers are significantly lower than those achieved two years ago, however. 

There’s another problem too: the conflict in the Middle East. Various luxury giants - including Hermès, Kering and LVMH - have warned that the conflict is weighing on demand. This due to a slowdown in tourism both to and from the Middle East, and fewer airport sales. Burberry described tourism as a ‘key trend’ in last year’s annual report, saying lots of Middle Eastern and American tourists were travelling to Europe, so investors will be alert to any change in tone. 

Some analysts remain bullish, however. ‘We don't see the current cycle of weakening demand to be long-lasting, based on the industry's past 30 years; periods of subdued demand didn't last more than two years,’ Morningstar concluded.

• More on Burberry

International Consolidated Airlines

First quarter update: Friday 8 May 

Airline stocks rarely make stable investments. Share price charts for all the big players attest to this. Even by airline standards, however, 2026 has been eventful. 

The Middle East conflict - which has pushed up energy prices, caused jet fuel shortages, disrupted flight paths and rattled holidaymakers - has not been good for the sector. Investors will be watching British Airways owner International Consolidated Airlines (IAG) very closely, therefore, when it publishes a quarterly update on 8 May.
IAG was having a very successful run until fighting broke out in the Middle East. It enjoyed a record year in 2025, growing revenue and widening its profit margin. In February, it also upped its share buyback programme by €500m and raised its dividend by 9%. 

The outlook for 2026 is uncertain, however. Airlines have very high fixed costs, meaning a fall in demand can have a big effect on profits. Meanwhile, fuel is the main element in a typical airline’s operating costs, so an energy spike could have a nasty impact on the bottom line. 

Many analysts have stressed the short-term nature of the shock, however, and IAG’s strong position versus rivals. ‘IAG’s fuel hedges, strong margins and balance sheet, and relative lower exposure to the Middle East places it in a much stronger position than many competitors, particularly its European network airline peers,’ investment bank Raymond James concluded.

• More on International Consolidated Airlines

Marks & Spencer 

Full-year results: Wednesday 20 May 

If you find yourself on London’s Oxford Street, you might stumble across a Marks & Spencer store that looks more enticing than most. After a multi-million-pound renovation, 173 Oxford Street contains a beautiful food hall, complete with a pizza bar and hot chicken counter, and a glossy women’s clothing department. The rest of the building is still under renovation. 

The store is something of a metaphor for M&S itself. It has made a huge amount of progress in recent years, sharpening up its image and luring in new customers. Its food offering has been a particular highlight. However, it is still in turnaround mode with plenty more work to do. 

Marks & Spencer will report its results for the year to March 2026 on 20 May. Profits are expected to be significantly down year-on-year due to a major cyber-attack last April, which resulted in lost sales and well over £100m of extra costs. There have been signs of recovery in recent months, however. Christmas trading was solid, and the company expects profit to be ‘at least in line with last year’ in the second half. 

Shareholders will be on high alert for new challenges, however, as retailers react to the Middle East conflict. In April, for example, Tesco provided a wider range of profit guidance than planned to reflect the ‘increased uncertainty caused by the conflict in the Middle East’. 

Investors are divided on the outlook for M&S. Some praise its store renovation programme, its improved style credentials, its cost cutting, and behind-the-scenes improvements to logistics. Others are nervous about the uncertain economic environment and pressure from rivals. 

‘We see premium-end grocers facing unfavourable long-term secular trends, including an increasingly value-oriented UK consumer base and the emergence of high-quality food offerings across a broad spectrum of price points,’ analysts at Morningstar warned. 

• More on Marks & Spencer

National Grid 

Full-year results: Thursday 14 May

It is easy to assume that high energy prices are good for all energy companies. Just look at the likes of BP and Shell. The investment case for National Grid is a little different, however.

National Grid transports electricity from where it is produced to where it's needed. Its main focus is transmission, which involves moving electricity at a high voltage through a network of pylons, overhead lines, cables and substations. 

National Grid’s revenue comes from us, the customers. However, energy prices don’t directly affect it. Instead, in everyone’s electricity bill, there is a small charge – roughly £24 a year – that covers the cost of transmission. 

The energy regulator, Ofgem, dictates how much money National Grid can make. At a very simple level, the more infrastructure National Grid owns, the more it can earn. This is why National Grid’s £60bn investment push - aimed at strengthening the UK’s electricity grid - has been warmly received by investors. It is expected to drive earnings up at a compound annual rate of 6-8% between 2024 and 2029. 

There have been sacrifices along the way, however. National Grid’s famously reliable dividend was rebased in 2025, for instance, to help fund the spending plans. This felt like an important turning point, given the firm had increased the dividend every year since 1998. 

National Grid is due to publish its full-year results on 14 May. Investors aren’t expecting surprises - in an April update, management said performance was in line with expectations. However, it did mention some one-off costs from the US business which might attract attention.

• More on National Grid 

Vodafone

Full-year results: Tuesday 12 May

Vodafone is another fallen dividend hero. In 2025, it halved its divided from 9c a share to 4.5c a share, to ensure “appropriate cash flow cover and sufficient flexibility to invest in the business for growth.” It plans to increase the dividend over time from this lower level. 

The cut was part of a major rethink at the telecom giant. Under chief executive Margherita Della Valle, who took control in 2023, it has also sold off its underperforming Italian and Spanish businesses, completed a huge merger with rival Three UK, and completed €3.5bn of share buybacks. Another €500m buyback commenced in February. These changes have driven shares higher after years of poor performance. 

Vodafone will publish its full-year results on 12 May, and expectations are high. In a third quarter update, it said it was on track to deliver at the upper end of its guidance range for both profit and cash flow. It also expects to increase its annual dividend by 2.5%. 

That’s not to say the company hasn’t faced problems of late. Vodafone’s largest market is Germany, and a regulatory crackdown has hurt sales in the region. In the past, thousands of German rental contracts came with Vodafone as the preset broadband and TV provider. Now, however, rules state that renters must be allowed to choose their provider. Vodafone has lost business to rivals as a result.

After a lacklustre third quarter, shareholders will be hoping for signs of progress in Germany in the full-year results. Emerging markets will also play an important role. Vodafone makes a fifth of its sales in South Africa, Egypt, Turkey, and other African, and Middle Eastern countries. Competition here tends to be less fierce and growth opportunities are high. 

• More on Vodafone

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