Tesco Profits Surge Amid Competitive Heat and Hot Weather Boost

Tesco, the leading supermarket group in the UK, has revised its profit forecast upwards for the fiscal year, buoyed by a standout summer and increased market share.

The retailer, which now holds 28.4% of the British grocery market, anticipates adjusted operating profit for 2025/26 to hit between £2.9 billion and £3.1 billion. This marks an improvement from its prior estimate of between £2.7 billion and £3.0 billion, having recorded an operating profit of £3.13 billion in the previous year.

The first half of the year saw UK like-for-like sales climb by 4.9%, a slight dip from the 5.1% growth in the first quarter. Tesco noted that while competitive pressures remain high, effective customer strategies and prolonged favorable weather conditions have mitigated investment costs.