Tesco (OTC: TSCDY) Reports Strong Earnings, Raises Profit Outlook, and Boosts Share Buyback

Font: Financial Modeling Prep  • Oct 08, 2026

• Tesco (OTC: TSCDY) exceeded earnings per share estimates, reporting $0.69 against an estimate of $0.64, despite revenue of $44.60 billion falling short of the $49.60 billion forecast.
• The UK supermarket chain raised its full-year adjusted operating profit forecast to a range of £3.15 billion to £3.30 billion, up from an earlier range of £3.00 billion to £3.30 billion, following a 6.5% rise in first-half adjusted operating profit to £1.78 billion.
• Tesco increased its current-year share buyback plan by £200 million, from £750 million to £950 million, citing strong cash generation and a robust balance sheet.

Tesco (OTC: TSCDY) is a UK supermarket chain that sells groceries through stores and online. It also owns Booker, a wholesale business. On October 8, 2026, Tesco reports earnings per share of $0.69, above the $0.64 estimate. Revenue is $44.60 billion, below the $49.60 billion estimate.

The earnings beat comes alongside a stronger profit outlook. First-half adjusted operating profit rises 6.5% to £1.78 billion, as highlighted by Proactive Investors. Tesco now expects full-year adjusted operating profit of £3.15 billion to £3.30 billion, compared with its earlier range of £3.00 billion to £3.30 billion. Adjusted operating profit measures profit from regular operations before certain costs.

For the 26 weeks ended August 29, sales excluding fuel and VAT rise 2% to £33.78 billion. Group like-for-like sales, which compare established stores without counting new openings, grow 1%. UK like-for-like sales increase 1.5%, including 2.4% growth in food. These figures provide detail on sales activity but use a different measure and period from the reported revenue figure.

Results vary across Tesco’s businesses. Sales rise 4.1% in the Republic of Ireland and 0.4% in Central Europe. Booker’s like-for-like sales fall 2.6% amid a difficult comparison with the prior year and continued declines in tobacco sales. Tesco’s pretax profit rises 11.5%, as highlighted by The Wall Street Journal.

Tesco also increases its current-year share buyback plan to £950 million from £750 million, citing strong cash generation and its balance sheet. A buyback reduces the number of shares in circulation. Tesco’s trailing price-to-earnings ratio is 18.54, while its debt-to-equity ratio is 1.31 and its current ratio is 0.59.