Tesco Lifts Lower End of Fiscal 2027 Outlook as Profit, Sales Grow in First Half

04:24 AM EDT, 10/08/2026 (MT Newswires) -- Shares in Tesco (TSCO.L) rose on Thursday after the company increased the lower end of its fiscal 2027 outlook, following higher first-half profit and sales. The supermarket group now expects group adjusted operating profit of between 3.15 billion pounds sterling and 3.30 billion pounds, compared with the previous range of 3 billion pounds to 3.30 billion pounds. The company's shares were up more than 4% during early trading in London. For the 26 weeks ended Aug. 29, profit attributable to owners of the parent rose to 1.06 billion pounds from 950 million pounds a year earlier, while revenue increased to 37.35 billion pounds from 36.04 billion pounds. Sales excluding fuel grew 2% based on actual currency rates to 33.78 billion pounds during the fiscal first half on the back of "relatively resilient" consumer confidence. Tesco noted, however, that the ongoing geopolitical issues continue to create uncertainty. Tesco also increased its total allocation for fiscal 2027 share buybacks to 950 million pounds sterling from 750 million pounds. The ongoing program is expected to be completed in April 2027. The board also increased the interim dividend for the six months to 0.0505 pound per share from 0.0480 pound per share paid in the previous year's corresponding period. "Tesco has released its H1 results this morning with H1 operating income ahead of consensus expectations, driven by all regions and PBT further ahead, we think helped by lower net interest costs than expected. Tesco has raised the lower end of its guidance range for FY27 operating profit and we note consensus was already towards the upper end of the range," RBC Capital Markets said in a quick-take note following the release. "We note very strong cash generation, even accounting for a c.GBP250mn timing benefit that is expected to unwind in H2."