Tesco PLC (LSE:TSCO) reported steady growth in sales and profit after a year of investment in lower prices helped lift market share. Sales excluding fuel rose 4.3% to £66.6 billion, while like-for-like sales increased 3.5%.
Tesco PLC (LSE:TSCO) and J Sainsbury PLC (LSE:SBRY) will face a complex mix of pressures in the coming months as higher fuel and fertiliser prices filter through to the UK grocery sector, Deutsche Bank warned. Despite signs of easing inflation last year and into the start of 2026, the UK food retail sector is now confronting renewed cost pressures driven by the Middle East conflict, analysts at the bank said.
Tesco, Britain's biggest food retailer, has partnered with U.S. software group Adobe to deepen its use of artificial intelligence in analysing customer data, aiming to boost sales through more personalised marketing, the groups said on Monday.
The FTSE 100 Index futures pulled back on Monday as geopolitical tensions rose after the weekend talks between the US and Iran followed by President Donald Trump's decision to enact a blockade on the Strait of Hormuz. This article explores some of the top FTSE companies to watch this week.
Tesco share has done modestly well in the past few weeks and is hovering near its all-time high as traders wait for the upcoming financial results. It was trading at 487p on Tuesday, down slightly from the all-time high of 510p.
Shares in Tesco PLC (LSE:TSCO) and J Sainsbury PLC (LSE:SBRY) opened higher on Wednesday as Rachel Reeves met the chief executives of the UK's biggest supermarkets to assess the risk of food price rises and supply shortages stemming from the Middle East conflict. Tesco shares were up 1.48% and Sainsbury's 1.19% as the chancellor sat down with the two grocers alongside Morrisons to gauge the potential impact on household costs in the coming months.
Analysts raise their outlook for the UK's biggest supermarket ahead of full-year results next month. Tesco PLC (LSE:TSCO), the UK's largest supermarket chain, has had its price target raised to 545p from 515p by analysts, who have also lifted their food inflation forecast to around 4% for 2026, up from a previous estimate of 3%.
Shore Capital, the highly-regarded retail sector specialist, has reiterated its buy recommendation on Tesco PLC (LSE:TSCO) ahead of the supermarket group's full-year results on 16 April, arguing that the grocer's qualities as a reliable cash generator justify further gradual re-rating of its shares. Analysts Clive Black and Darren Shirley said Tesco had navigated a more intensely competitive UK grocery market with commendable discipline during its financial year to February 2026.
Shore Capital has nudged up its profit forecasts for Tesco PLC (LSE:TSCO)after a better-than-expected Christmas, while reiterating its buy rating on the shares at 416p. The broker said Tesco's 19-week trading update in early January showed a resilient performance in a tighter and more competitive grocery market.
Citi has pointed to renewed pressure on Asda's funding costs as a potential tailwind for listed UK grocers Tesco PLC (LSE:TSCO) and J Sainsbury PLC (LSE:SBRY), arguing the private business may have less headroom to keep escalating price investment. The broker noted a recent decline in Asda's bond prices, with its largest issue now trading at around a 10.5% yield to maturity, up from 9.6% three months ago and 9.4% a year ago.
Tesco is upgraded to 'Buy' after a post-Christmas selloff, with 20–30% total return potential including dividends and buybacks. Despite softer Christmas comps, TSCDY gained market share, leveraging aggressive pricing, strong fresh food, and growth in online and premium lines. Management maintains guidance: EBIT £2.9–3.1B, FCF £1.4–1.8B, and consensus targets remain steady, supporting valuation upside.
Tesco PLC (LSE:TSCO) shares saw pressure after reporting softer-than-expected sales growth for its third quarter and Christmas period, though analysts at Deutsche Bank and Citi believe the market reaction may be overdone. Group like-for-like (LFL) sales rose 3.1% in Q3 and 2.4% over the six weeks to early January, both slightly below consensus estimates.