Investing.com — , the U.K.’s largest grocery chain, said on Thursday that the uncertainty stemming from the Middle East conflict had prompted it to widen its profit outlook for the coming year.
The retailer guided for an adjusted operating profit of between £3.0bn and £3.3bn ($4.07–$4.48bn) for its 2026/27 financial year. That compares to the £3.152bn it posted in 2025/26 — a modest 0.6% year-on-year improvement that came in slightly ahead of its own targets.
“Much will depend upon the duration of the conflict and in particular, the potential implications for UK households and the economy more broadly,” the company said.
Before Thursday’s announcement, the analyst consensus had been sitting at around £3.23bn for the year ahead.
To help fund continued investment in its customer proposition, Tesco said it is targeting a further £500m in cost savings over the period. It also guided for free cash flow of between £1.5bn and £2.0bn, consistent with the upgraded medium-term framework it set out alongside the results.
For 2025/26, Tesco’s revenue came in at £66.6bn, up 4.3% on a constant-currency basis, while adjusted earnings per share reached 29.0p. Group like-for-like sales grew 3.5%, with positive momentum across all operating segments.
Adjusted operating profit rose marginally to £3.15bn for the full year.