Tesco (TSCO) Q1 25/26 TU earnings summary

Executive summary

• Achieved strong like-for-like sales growth across all areas, with 24 consecutive periods of UK market share gains, now at 28%.

• Group sales grew 5.5% year-over-year for the 13 weeks ended 24 May 2025.

• Customer satisfaction and brand perception improved, with a 65 basis point increase year-over-year, supported by new product launches and strong value proposition.

• Broad-based share gains driven by investments in value, quality, and customer experience.

Financial highlights

• UK like-for-like sales grew 5.1% year-over-year; food sales up 5.9%, non-food (ex-toys) up 6.2%.

• Group sales totaled £16,383m, up 5.5% year-over-year; UK & ROI sales reached £15,386m.

• Online grocery achieved double-digit growth, with UK online sales up 11.5% and market share up 1.5 percentage points year-over-year.

• Ireland market share increased to 23.3%, with food like-for-like sales up 5.8% and online sales up 19.8%.

• Booker delivered 2% like-for-like growth; core catering up 7.3%, core retail up 5.4%, but total growth limited by tobacco decline.

Outlook and guidance

• Full-year guidance reiterated, with a focus on maintaining momentum and flexibility to invest as needed; Group adjusted operating profit guidance of £2.7bn–£3.0bn.

• Free cash flow expected within the medium-term range of £1.4bn–£1.8bn.

• Management remains cautious on margin outlook due to competitive intensity and cost headwinds.