AO World (LSE:AO.) increased its profit outlook and announced its first-ever share buyback on Monday, following a period of double-digit revenue growth in the first half of the year.
The online electricals retailer reported that B2C revenues grew 11% during the period, while group revenues, including contributions from MusicMagpie, rose 13%. The company reaffirmed its guidance for continued double-digit B2C growth in fiscal 2026. Adjusted profit-before-tax guidance was raised from £40–50 million to £45–50 million, reflecting a 6% increase at the midpoint.
AO also confirmed a £10 million share repurchase program. The company reported a net cash position of approximately £70 million for H1, exceeding prior estimates.
Following the update, Jefferies increased its forecast for AO’s fiscal 2026 net cash position from £35 million to £45 million. The investment firm noted that this trading update represents the 10th guidance upgrade since summer 2022.
Analysts highlighted AO World’s strong performance across service, membership programs, and cost management, though no category-specific revenue breakdowns were provided.
Shares of AO closed at 83.40p prior to the announcement. Jefferies maintained its “buy” rating and a 150p price target, implying an 80% increase from the most recent closing price.
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