LONDON (dpa-AFX) - British retail major Tesco Plc (TSCO.L) reported Thursday strong first-half results and raised its fiscal 2027 profit outlook on the back of resilient consumer demand and operational improvements. Further, the firm raised share buyback program.
The supermarket operator posted profit before tax of £1.455 billion in the first half, up 11.5% from £1.305 billion in the prior year period.
Earnings per share increased 17.4% to 16.7 pence from 14.2 pence last year.
Adjusted profit after tax reached £1.101 billion, compared with £1.031 billion a year ago. Adjusted earnings per share were 17.3 pence, compared to 15.4 pence in the prior year.
Revenue excluding VAT and including fuel grew 3.7% to £37.353 billion from £36.036 billion last year. Sales excluding VAT and fuel grew 2.0% to £33.776 billion from £33.051 billion a year ago, with constant currency sales up 1.6%. Group like-for-like sales advanced 1.0% during the period.
Further, Tesco announced an interim dividend of 5.05 pence per share, a 5.2% increase from 4.80 pence last year. The interim dividend will be paid on November 20 to shareholders on the register at close of business on October 16.
Tesco also increased its current year share buyback programme to £950 million from £750 million, reflecting a strong balance sheet and sustained cash generation.
Looking ahead, the company now expects fiscal year adjusted operating profit between £3.15 billion and £3.30 billion, raising guidance from the £3.0 billion to £3.3 billion range communicated in April 2026.
The retailer continues to expect free cash flow between £1.5 billion and £2.0 billion, consistent with medium-term guidance. Consumer confidence has remained relatively resilient in the first half, though geopolitical tensions continue to create uncertainty in the operating environment, the firm noted.
In London, Tesco PLC shares closed Wednesday's trading at 475.80 pence, up 1.23 percent.
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