Next week on the stock market

BP will announce second-quarter results next week. The group’s highlighted that performance is likely to be affected by lower oil and gas prices. However, oil production has been higher than in the previous quarter.

Refining profits should rise by $300–500mn despite increased refinery maintenance. Additionally, oil trading is poised for strong results, supporting analyst forecasts that underlying net profit has improved from $1.5bn in the first quarter to around $1.8bn.

BP expects its net debt to be slightly lower than the $27bn reported at the end of the first quarter. In line with this year’s strategic goals, a subsequent deal to divest its US onshore wind business should further strengthen the balance sheet. Investors will be keen to hear if there’s any scope for an uplift in share buybacks, which had been more than halved to $0.75bn after a weak first quarter.

Palantir comes into second quarter earnings with a huge amount of momentum, but also massive pressure to deliver. Markets are looking for 53% growth in earnings per share, but whether that’s enough to sustain this rally remains to be seen – that number will probably be seen as a minimum hurdle mark.

On new contracts, government momentum needs to keep pace and progress outside of the US will be worth watching. There’s a huge addressable market on offer and Palantir has yet to really see international adoption shift into overdrive. There’ll also be some focus on new corporate clients, and whether Palantir’s bootcamps are still driving strong conversion rates.

There’s no question Palantir is a quality business, well-positioned to capitalise on the growing demand for AI-driven data insights. Whether it can deliver enough growth to support the mammoth valuation remains to be seen.

Diageo’s full-year results next week come hot off the heels of a solid third-quarter performance, which saw sales rise 5.9% to $4.4bn. Although these figures were flattered by customers stocking up on booze before the expected tariffs kicked in, there are early signs that the industry’s recovering from its cyclical hangover.

We’ll be keeping a close eye on just how well Diageo is managing these ongoing tariff headwinds, which were expected to add around $150mn in annual costs. The Johnnie Walker and Guinness maker plans to absorb half through operational efficiencies, with the rest likely passed on through price increases.

Former CEO Debra Crew stepped down with immediate effect in mid-July, after more than two years of relatively underwhelming group performance, so we’re keen to get some updates on the search for a longer-term successor. As things stand, full-year underlying operating profits are expected to decline slightly to around £5.7bn, before returning to growth territory in the new financial year.