Tesco lifts profit outlook as consumer confidence ‘resilient’

Tesco PLC reported H1 2026/27 adjusted operating profit up 6.3% YoY to £1.78B, raising share buyback to £950M. Sales grew 1.6% to £33.8B, with EPS up 12.2% to 17.3p. Free cash flow rose 21.0% to £1.57B. Shares rose 4.54% to $497.40.

Tesco reports higher sales and raises its annual profit outlook to £3.15-3.3B. CEO Ken Murphy notes UK consumers are resilient despite economic uncertainties and expects a 'marginally healthier' Christmas with less alcohol consumption. Sales grew 1% YoY, with online sales up 8.4% and rapid delivery up 37%.

Tesco PLC (LSE:TSCO) shares rose 4% after raising its profit outlook and increasing its share buyback to £950 million. Adjusted operating profit rose 6.5% to £1.78 billion, beating estimates. Full-year profit guidance was narrowed to £3.15-£3.30 billion. Sales increased 2% to £33.78 billion, with UK food sales up 2.4%. Digital sales grew 8%, and Whoosh rapid-delivery service expanded 37%.

Tesco raised its annual profit forecast, citing resilient consumer confidence. Sales rose 2% to £33.8bn, and underlying profit increased 6.5% to £1.8bn. Online sales and premium own-label revenues grew 8% and 9%, respectively. The company now expects annual profits of £3.15bn to £3.3bn, up from a previous forecast of at least £3bn. Booker wholesale sales fell 2.6%. Tesco is using AI to improve operations and reduce costs.

Tesco is considering a bid for Majestic Wine Group, the UK's largest wine retailer, which is being sold by its private equity owner, Fortress Investment Group. Majestic operates over 210 stores and reported £386.2m in sales for the year ending March 2025, with profits nearly halving to £7.8m. Tesco, which holds 28% of the UK grocery market, has seen an 8.5% rise in annual pre-tax profit. Fortress expects to make hundreds of millions from the sale.

PepsiCo (PEP) reported Q3 revenue of $25.27B, up 5.6% YoY, and adjusted EPS of $2.34, beating expectations. The company lowered its FY 2026 core EPS growth forecast to 2.5%-3.5%. PepsiCo cited strong performance from products like NKD and Doritos Protein, but plans to raise prices by 15% to offset higher costs.