Tesco chief executive Ken Murphy has lifted the supermarket’s profit outlook after a strong first half, saying the business is well placed for the rest of the year despite pressure on household spending. The grocer now expects group adjusted operating profit of between £3.15bn and £3.30bn, a tighter and higher range than the £3.0bn to £3.3bn it set out in April 2026.
In the 26 weeks to 29 August, group adjusted operating profit rose 6.3 per cent at constant rates to £1.78bn, up from £1.67bn a year earlier. Statutory pre-tax profit climbed 11.5 per cent to £1.455bn from £1.3bn. The company said the performance leaves it in a good position going into the second half and supports further investment in what it offers customers.
Murphy pointed to the chain’s “highest-ever customer satisfaction score”, which he linked to value, quality and service. Tesco launched more than 800 new and improved products during the half, and its Finest premium range grew sales by 9 per cent. Online sales rose 8 per cent, while Whoosh, its rapid delivery service, grew sales by 37 per cent and is on course to pass £500m this year. Murphy also highlighted progress on AI-driven personalisation, a wider rollout of Your Clubcard Prices and the start of a customer launch for a meal planning assistant. Tesco Media, the advertising arm, attracted new advertisers and upgraded its self-service platform with better analytics and automation.
Analysts were broadly positive. Nick Sherrard, managing director of Label Sessions, described the figures as another solid set of results, with sales, profits and cash generation all improving. He credited the record satisfaction score to a mix of low prices, better quality and easier shopping, and said Clubcard gives Tesco one of the richest customer datasets in the UK, which its retail media business uses to sell to suppliers. Sherrard said Tesco was starting to look “less like a supermarket chain and more like a consumer data platform”.
Sherrard also singled out more personalised offers, wider rewards and the AI meal planner as features that shoppers had welcomed, and cited solid online growth, new delivery partnerships and continued product investment as signs that Tesco is in a strong position. The upgraded guidance gives Murphy room to keep investing in prices and products through the second half, as the grocer tries to turn record customer satisfaction into further gains while consumers remain careful with their money.
