Tesco posts strong results as it faces tough competition
Tesco has published its full-year profit expectations for 2025/2026 after reporting a rise in sales for its fiscal first half.
Group sales were up +4.3%, with growth across all markets: UK +4.9%, ROI +4.8%, Booker +1.7%, CE +3.4%. Adjusted operating profit was also up +1.6% at constant rates to £1,674 million.
Adjusted diluted EPS is up +6.8% to 15.43p, driven by higher group adjusted operating profit and the benefit of our ongoing share buyback programme.
UK market share was up +77bps YoY to 28.4%, having now gained share for 28 consecutive four-week periods.
Tesco said it now expected full year 2025/26 adjusted operating profit of between £2.9 billion and £3.1 billion, up from previous guidance of between £2.7 billion and £3 billion.
Commenting on the data, Chief Executive Ken Murphy said he was pleased with the group’s first half performance, which builds on already strong momentum.
“Our market share gains in the UK are a particular highlight and reflect the decisive action we took at the start of the year to further invest in value, quality, and service.
He added that sales have grown across all of Tesco’s businesses, with customer satisfaction scores improving once again.
“Competitive intensity remains high, and with continued pressure on household budgets, we remain committed to ensuring customers get the best possible value by shopping at Tesco.
“As we continue to invest, we are creating sustainable value for all our stakeholders. Our colleagues are central to everything we do, and I would like to thank them all for the role they have each played in delivering for our customers.”
