Tesco (TSCO) Q1 26/27 TU earnings summary

Executive summary

• Achieved a strong start to the year with high customer satisfaction, supported by a focus on value, innovation, and convenience, and continued sales growth across most regions.

• Progressed on long-term growth drivers: personalization, retail media, and digital capability, with strong digital engagement and new delivery options.

• Maintained market share overall, with a slight decline in the latest four-week period due to strong prior-year comparatives.

• Over 520 new and improved products launched, including major expansions in premium and high-protein ranges.

Financial highlights

• Like-for-like sales in the UK grew 1.8% year-over-year, led by fresh food (+3.6%) and Finest range (+9%).

• Online sales rose 8.9%, with Whoosh quick commerce up over 30%.

• Ireland saw like-for-like sales up 3.3% and total sales up 5.6% year-over-year; ROI online sales up 10.9%.

• Group sales (excluding VAT and fuel) reached £16,826m for the quarter, up 1.0% year-over-year.

• Group adjusted operating profit guidance maintained at £3.0–£3.3 billion for the full year.

• Free cash flow expected within £1.5–£2.0 billion range.

Outlook and guidance

• Full-year profit and cash flow guidance reiterated, with performance in Q1 in line with expectations.

• Management remains confident in profit growth for the year, barring significant changes in consumer behavior.

• Group adjusted operating profit for FY 26/27 expected between £3.0bn and £3.3bn.

• Weather and consumer sentiment are key variables for H2 performance.

• Ongoing uncertainty from Middle East conflict noted as a risk to consumer confidence.