Up 6%, can this ‘gritty’ stock continue outperforming the rest of the FTSE 250?

The FTSE 250 is struggling for momentum once more as battle in the Center East shakes investor nerves. However not all UK mid-cap shares are caught in the mire. ITV (LSE:ITV) shares had been final up strongly in end-of-week buying and selling after releasing full-year buying and selling numbers.

At 83.2p per share, ITV’s share value was final 6% increased on Friday (6 March). Analysts have known as the firm’s 2025 replace a “story of grit amid gloom” — the broadcaster’s shares at the moment are up 9% over a 12-month interval.

What on earth’s been happening at the I’m A Superstar… producer? And may buyers think about shopping for the FTSE 250 share?

Managing a troublesome surroundings

Issues haven’t been straightforward at ITV as powerful circumstances in the promoting market have hit revenues. It’s additionally battling in opposition to the regular decline of linear TV as streaming companies achieve recognition. But 2025 was a narrative of resilience as a lot as anything.

At £4.1bn, group income was basically unchanged from the earlier yr. That’s despite the fact that promoting gross sales dropped 5% over the interval yr on yr, to £1.7bn. Adjusted pre-tax income fell by the similar share to £448m.

As soon as once more the firm’s ITV Studios manufacturing unit rode to the rescue to cease gross sales sinking. Turnover right here rose 5% final yr, to £2.1bn, a brand new file excessive. ITV is ‘making lemons from lemonade’ so to talk, and is exploiting surging demand for content material from streaming corporations.

It’s additionally turning the streaming growth to its personal benefit by means of its personal ITVX platform. The agency’s invested a fortune in programming and expertise, and this is paying off handsomely. Certainly, ITV has recouped its complete funding already and 4 years forward of schedule.

As analyst Garry White of Charles Stanley feedback, this is “a uncommon achievement in a streaming business affected by billion‑greenback losses“. The quantity of lively month-to-month customers at ITVX surged 12% final yr, to 16.5m.

What may go unsuitable?

My key takeaway from ITV’s replace is that issues may have been a lot worse. Its efficiency in 2025 was one which spoke of sturdy execution in a troublesome surroundings. However income nonetheless dropped yr on yr, and 2026 could possibly be an much more tough one.

ITV Studios is tipped for “one other yr of good progress” and one other market-beating efficiency. However promoting gross sales are tipped to be lumpy, with Q1 complete advert revenues set to drop 2% as advertisers wait earlier than ramping up exercise in Q2 and Q3 when the soccer World Cup kicks off.

However may gross sales right here stay below strain past this quarter? I feel so, with battle in the Center East threatening to ship shockwaves throughout the world financial system. This might additionally see streaming corporations rein in spending on content material.

Are ITV shares a attainable purchase?

There’s rather a lot I like about ITV, and assume it’s doing an awesome job of navigating the streaming age. However will I purchase its shares proper now?

I gained’t, however primarily as a result of of the FTSE 250 firm’s valuation. A ahead price-to-earnings (P/E) ratio of 13 instances doesn’t, in my opinion, mirror the dangers going through this ultra-cyclical stock right this moment. If the advert market falls off a cliff, I feel ITV’s excessive valuation may spark a serious drop in its share value.