UK's Tesco beats preliminary FY adjusted operating profit and EPS estimates

Tesco

16/04/2026 07:12

Overview

UK grocery retailer's preliminary FY sales ex-VAT ex-fuel rose 4.6% yr/yr

Adjusted EPS and adjusted operating profit beat analyst expectations

Company announced new £750 mln share buyback to be completed by April 2027

Outlook

Tesco expects 2026/27 adjusted operating profit between £3.0 bln and £3.3 bln

Company sees 2026/27 free cash flow of £1.5 bln to £2.0 bln

Tesco targets £500 mln in savings this year through Save to Invest programme

Result Drivers

SALES GROWTH & MARKET SHARE - Co said sales growth and market share gains in UK and ROI were driven by targeted investments in price, quality and service, and strong customer response, with volume growth across all channels

COST SAVINGS OFFSET INFLATION - Save to Invest programme delivered £535 mln in savings, helping offset operating cost inflation and funding investments in the customer offer

ONLINE & NEW PRODUCTS - Online sales grew 11.2%, supported by improvements to the website and expansion of rapid delivery, while over 2,000 new and improved products were launched, including strong growth in Finest ranges

Company press release: ID:nRSP6553Aa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
FY Sales ex-VAT ex-Fuel
GBP 66.59 bln
FY Adjusted EPS
Beat
GBP 0.29
GBP 0.28 (14 Analysts)
FY EPS
GBP 0.27
FY Adjusted Operating Profit
Beat
GBP 3.15 bln
GBP 3.09 bln (15 Analysts)
FY Dividend
GBP 0.15
FY Pretax Profit
GBP 2.40 bln


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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)