Tesco (TSCO LN) FY 2025 (GBP): Revenue 66.6bln (prev. 63.63bln Y/Y), Adj. EPS 29p (prev. 27.4p Y/Y), Dividend/shr 14.5p (prev. 13.7p Y/Y)

Other Metrics:

  • LFL Sales +3.5%.

Outlook: 

  • Reflecting the increased uncertainty caused by the conflict in the Middle East, we are providing a wider range of guidance than we were previously planning.
  • we are expecting to deliver adjusted operating profit of between GBP 3.0-3.3bln for the 2026/27 financial year.
  • Targeting a further GBP 500mln saving this year through our Save to Invest programme.
  • We expect free cash flow of between £1.5bn and £2.0bn, in line with the upgraded medium-term guidance range set out above.

CEO: 

  • "Customers are choosing to shop more with us as a result, leading to our highest market share for over a decade".
Context

Tesco's FY 2025 results show stronger revenue and adjusted EPS growth year-over-year, indicating solid operational performance. However, the company has issued wider guidance ranges due to increased uncertainty from geopolitical tensions, which could signal caution in the market outlook despite improved metrics. Investors should monitor how this balance of strong current performance and uncertain future guidance affects market sentiment.

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