In its financial results for the year ended 28th February 2026, UK supermarket Tesco achieved a group adjusted operating profit of £3.15 billion, up 0.6% on the year.
Statutory operating profit was £2.98 billion, up 10.1% year-on-year. UK and Republic of Ireland (ROI) adjusted operating profit was up 0.7% to reach £2.7 billion, while wholesale division Booker saw an increase of 0.7% on the year to reach £292 million, with sales growth in the core retail and core catering businesses.
Operating profit in Central Europe decreased by 0.9% to £115 million, reflecting a £9 million decline on the year. Tesco said this was the result of the sale of five mall properties in HS 24/25.
UK customer satisfaction reached a “record high”, said Tesco, as group like-for-like sales were up 3.5%, with growth across all operating segments.
Outlook for 2026
Tesco said that it would be providing a wider range of guidance than previously planned, reflecting “increased uncertainty” cause by conflict in the Middle East.
Currently, the retailer is expecting to deliver adjusted operating profit of between £3 billion and £3.3 billion for the 2026/27 financial year.
Ken Murphy, chief executive of Tesco, commented: “We are committed to doing whatever we can to help keep down the cost of the weekly shop, and with the conflict in the Middle East creating further uncertainty for consumers and the economy more broadly, that commitment matters more than ever. Over the last year, despite cost pressures from new regulation, we have increased our investments in keeping prices low, further improving quality and offering even better service.
“Customers are choosing to shop more with us as a result, leading to our highest market share for over a decade. Our investments have been made possible by our Save to Invest programme, which has delivered over £2.2 billion of savings over the last four years, funding lower prices for customers and higher pay for colleagues, including our recent 5.1% increase in UK hourly pay. Recognising their exceptional service over the last year, I am also pleased to announce a £65 million special performance award for colleagues in our stores, distribution centres and customer engagement centres.”
“Our further investments in value included tripling the number of products on Everyday Low Prices to 3,000, running alongside over 10,000 Clubcard Prices and more than 600 Aldi Price Match lines. We have also continued to invest in quality and innovation, with over 2,000 new and improved products across the year, and Finest growing 15% to reach sales of £3 billion. We continued to meet customer needs wherever, whenever and however they chose to shop with us, with overall online sales growing 11%, including Tesco Whoosh growth of 51%.
“Since setting out our multi-year performance framework in 2021, we have delivered meaningful progress for all our stakeholders. As new opportunities and challenges have emerged, we have evolved our strategic ambitions, positioning us well to deliver sustained long-term growth by providing even better value for customers.”
