Tesco lifted profit guidance. Morgan Stanley set Tesco stock target at GBp 550.00

Published on 10/13/2026 at 01:44 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Adjusted operating profit rose 6.50 percent to GBP 1.783 billion in H1 2026/27. For Tesco stock this means a GBP 950 million buyback, up from GBP 750 million.

Key points in brief

Tesco lifted the lower end of fiscal 2026/27 adjusted operating profit guidance to GBP 3.15 billion.
First-half adjusted operating profit rose 6.50 percent to GBP 1.783 billion for the 26 weeks ended August 29, 2026.
The current-year buyback increased to GBP 950 million from GBP 750 million.
Morgan Stanley set a GBp 550.00 target for Tesco stock on October 1, 2026.

Börsen-Editorial mit Händlern und Kursbildschirmen am Handelsplatz in London, FTSE 100 — Tesco plc (ISIN GB00BLGZ9862) notiert im FTSE 100, hier redaktionell an Londoner Börsenhandelsplatz mit Charts, Illustration mit AI erstellt.

Tesco (ISIN GB00BLGZ9862) lifted the lower end of its fiscal 2026/27 adjusted operating profit guidance to GBP 3.15 billion on October 8, 2026, while Morgan Stanley set a GBp 550.00 target for Tesco stock on October 1, 2026. The half-year figures put the guidance change in context, with adjusted operating profit rising 6.50 percent to GBP 1.783 billion for the 26 weeks ended August 29, 2026.

Guidance moves above the old floor

According to Reuters on October 8, 2026, Tesco now expects adjusted operating profit of GBP 3.15 billion to GBP 3.30 billion for fiscal 2026/27, compared with its previous GBP 3.00 billion to GBP 3.30 billion range. The lower end therefore increased by GBP 150 million, while the upper end stayed at GBP 3.30 billion.

The operating result grew faster than sales. Tesco reported sales excluding VAT and fuel of GBP 33.776 billion in the first half, up 2.00 percent from GBP 33.051 billion, while free cash flow rose 21.00 percent to GBP 1.570 billion from GBP 1.298 billion, according to Tesco.

What supports the shareholder return?

Tesco also increased its current-year share buyback to GBP 950 million from GBP 750 million, according to Tesco. Adjusted diluted earnings per share rose 12.20 percent to 17.3p from 15.4p, and the interim dividend increased 5.20 percent to 5.05p per share from 4.80p.

Morgan Stanley's GBp 550.00 target provides a higher reference point than the latest LSE quote. The finance data showed Tesco at GBp 511.00 on October 12, 2026 at 6:17 p.m. London time, with a 52-week range of GBp 411.70 to GBp 520.60 and market capitalization of GBP 31.8 billion.

Three dated operating milestones

On April 16, 2026, Tesco had begun the fiscal 2026/27 buyback program, with GBP 550 million repurchased by October 7, 2026, according to Tesco. On September 24, 2026, the retailer committed GBP 20 million as an anchor investor in the Bramble Fund. On October 8, 2026, Tesco reported first-half adjusted operating profit of GBP 1.783 billion and raised the guidance floor to GBP 3.15 billion.

Next dates for Tesco

Tesco's third-quarter and Christmas trading statement is scheduled for January 14, 2027, according to Yahoo Finance. The current-year buyback program is scheduled for completion by April 2027, according to Tesco.

Tesco stock after the update

Tesco was last at GBp 511.00 on the London Stock Exchange on October 12, 2026 at 6:17 p.m. London time. Its market capitalization was GBP 31.8 billion and its 52-week range was GBp 411.70 to GBp 520.60 on that date. The further course of trading is shown by the continuously updated real-time quote of Tesco stock.