UK supermarket Tesco has published its interim results for 2025/2026, achieving a 1.5% increase in its operating profit.
Group adjusted operating profit reached £1,674 million, up 1.5% from H1 2024/25’s £1,649 million. Group sales were up 5.1% on the year to reach £33,051 million.
Revenue increased by 3.6% to reach £36,036 million, up from £34,773 million in H1 2024/25.
In the UK & ROI, group adjusted operating profit was up 2.1% to reach £1,468 million, with Tesco citing volume-driven market share gains, good weather and ‘Save to Invest’ progress as having offset investment into its customer offer and operating cost inflation.
UK online sales were up 11.4%, driven by growth in orders per week, with market share up 112 basis points year-on-year to 36.9%.
Ken Murphy, chief executive of Tesco, commented: “I am pleased with our first half performance, which builds on already strong momentum. Our market share gains in the UK are a particular highlight and reflect the decisive action we took at the start of the year to further invest in value, quality and service.
“The extension of our savings programme is helping offset new operating cost inflation, including increased National Insurance and other regulatory costs. Sales have grown across all our businesses, with customer satisfaction scores improving once again.
“The steps we have taken to keep prices down for customers have improved our price position relative to the market. We have continued to enhance quality across all our ranges, including Finest, which is now in its third year of double-digit sales growth. Our summer ranges also benefited from over 470 new products and we continued to deliver market-leading availability. The opening of our new semi-automated distribution centre in Aylesford will further support our core fresh food offer.”
“Competitive intensity remains high… with continued pressure on household budgets.”
Murphy continued: “We are also continuing to invest in our long-term growth, leveraging technology to drive more personalised engagement through Clubcard and deeper retail media reach across channels and suppliers. Our online business is going from strength-to-strength, enhanced by the recent launch of F&F online and continued growth in Whoosh, our rapid delivery service.
“Competitive intensity remains high, and with continued pressure on household budgets, we remain committed to ensuring customers get the best possible value by shopping at Tesco. As we continue to invest, we are creating sustainable value for all our stakeholders. Our colleagues are central to everything we do, and I would like to thank them all for the role they have each played in delivering for our customers.”
