Tesco Lifts Earnings Outlook After Strong Christmas and Market-Share Gains

An update from Tesco plc ( (GB:TSCO) ) is now available.

Tesco reported robust trading for the 19 weeks to 3 January 2026, with group like-for-like sales up 2.9% and particularly strong momentum in its core UK and Republic of Ireland businesses, which helped the retailer achieve its highest UK market share in more than a decade. Investments in price, quality and service—especially in fresh food and the premium Finest range—underpinned strong Christmas performance, double-digit online growth and rapid-delivery gains via Whoosh, partially offset by weakness in Booker’s tobacco segment and the impact of a contract exit. The company strengthened its value credentials by expanding its Everyday Low Prices to over 3,000 branded products alongside Aldi Price Match and Clubcard-based promotions, while fresh-food-led growth, product innovation and store expansion also drove share gains in Ireland and Central Europe. On the back of this trading, Tesco now expects adjusted operating profit for 2025/26 to come in at the upper end of its £2.9bn–£3.1bn guidance range, signalling improved earnings prospects and reinforcing its competitive position in a highly contested grocery market.

The most recent analyst rating on (GB:TSCO) stock is a Buy with a £5.00 price target. To see the full list of analyst forecasts on Tesco plc stock, see the GB:TSCO Stock Forecast page.

Spark’s Take on GB:TSCO Stock

According to Spark, TipRanks’ AI Analyst, GB:TSCO is a Outperform.

Tesco plc’s overall stock score reflects a stable financial performance with some challenges in revenue growth and cash flow. The technical analysis suggests a positive momentum, and the valuation is fair. The earnings call provided a positive outlook with raised profit guidance, and the significant share buyback program enhances shareholder value.

To see Spark’s full report on GB:TSCO stock, click here.

More about Tesco plc

Tesco plc is a leading multinational grocery and general merchandise retailer headquartered in the UK, operating supermarkets, convenience stores and wholesale operations across the UK, Ireland and Central Europe. Its core business spans food retail, fresh produce, home and clothing ranges, online grocery and rapid-delivery services, complemented by wholesale and foodservice through Booker, with a strong focus on value-led mass-market consumers and private-label brands such as its premium Finest range.

Average Trading Volume: 14,995,633

Technical Sentiment Signal: Buy

Current Market Cap: £28.94B

For an in-depth examination of TSCO stock, go to TipRanks’ Overview page.