Tesco Boosts Profit Outlook, Shares Rise 1.8%

Tesco shares rose about 1.8% after widening its 2026‑27 operating profit forecast to £3‑3.3 billion amid Middle East conflict uncertainty.
For FY 2025‑26, revenue grew 4.3% to £66.6 billion, adjusted operating profit reached £3.15 billion and like‑for‑like sales rose 3.5%.
Tesco aims to deliver an additional £500 million of cost savings and expects free cash flow of £1.5‑2 billion.
The retailer faces intensifying competition from discounters such as Lidl and is expanding its Marketplace platform for capital‑light growth.