Tesco (LSE:TSCO) reported solid performance for the 53 weeks to 28 February 2026, with group sales excluding fuel rising 4.6% to £66.6 billion. Adjusted operating profit increased to £3.15 billion on a comparable 52-week basis, while statutory operating profit climbed 10.1%. Diluted earnings per share saw strong growth, and free cash flow improved to nearly £2 billion, enabling a higher dividend despite a rise in net debt following earlier banking disposals.
Chief executive Ken Murphy said continued investment in price, quality, and service during a challenging cost-of-living environment and geopolitical uncertainty has helped Tesco achieve its highest UK market share in more than a decade. Progress under the company’s “Save to Invest” programme, alongside expanded value offerings and growth in rapid delivery, has supported performance. Tesco also highlighted its longer-term strategy focused on strengthening its food leadership, expanding everyday services, and deepening supplier partnerships, while continuing to invest in staff through wage increases and bonuses.
The company’s outlook reflects generally stable financial performance, although there are some pressures on revenue growth and cash flow. Technical indicators point to positive momentum, and valuation appears reasonable. Management commentary remains upbeat, supported by improved profit guidance and a significant share buyback programme aimed at enhancing shareholder returns.
More about Tesco plc
Tesco plc is one of the largest grocery and general merchandise retailers in Europe, operating supermarkets, convenience stores, and online platforms across the UK, Ireland, and Central Europe. In addition to its core food retail business, the group operates wholesale distribution through Booker and offers a range of complementary services, including clothing, mobile, pharmacy, and financial products, serving a broad base of value-focused consumers.
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