Sainsbury Shares Drop 5.1% on Weak Guidance

Shares fell 5.1% after Sainsbury issued FY2027 operating profit guidance of £975m‑£1.075bn, below analysts' £1.10bn expectation.
Adjusted EPS for 52 weeks to 28 Feb 2026 was 22.3p, beating consensus 22.1p, while revenue was £33.65bn versus £33.73bn forecast.
Like‑for‑like sales grew 3.1% in Q4 (excluding fuel) and grocery sales rose 4.5% YoY, but underlying operating profit slipped 1.1% to £1.025bn due to cost inflation.
Board proposed final dividend of 9.6p (full‑year 13.7p, up 0.7%) and announced a £300m share buyback for FY2027; free cash flow rose 8.1% YoY to £574m.