18 June 2026
If you are covering Tesco’s latest results, please see the following comment from Lucy Rumbold, equity research analyst at Quilter Cheviot:
"Tesco’s Q1 update was light on detail but broadly in line, with guidance unchanged. UK like-for-like sales rose 1.8%, slightly below the 2.1% expected, reflecting a tougher comparison last year which benefited from favourable weather and disruption at M&S. We expect the negative share price reaction to be a result of this.
"The mix of growth continues to reflect how consumers are behaving. Shoppers are spending more on eating at home, with Tesco’s premium range up 9%, while online sales also grew 9% supported by the continued rollout of its rapid delivery service, Whoosh. Extending Aldi Price Match into Express stores should help reinforce its value credentials and support volumes as households remain cautious.
"Ireland performed as expected, with like-for-like sales up 3% driven by volumes, while Booker saw sales fall 3.2% on weaker catering demand and continued tobacco declines.
"Management said little on the wider backdrop but reiterated its focus on price, quality and service. Full-year guidance was unchanged, with profit expected to come in at the top end of the £3.0bn to £3.3bn range.
"Tesco’s market position and alignment with current consumer trends continue to support steady growth. That leaves scope for profits to increase, helped by the share buyback, with earnings per share likely to rise by around 11%. Combined with a dividend yield of around 3%, that points to a mid-teens total return."
