London, June 13, 2026, 20:02 BST
- Tesco finished the session Friday at 473.00p, up 0.87%. The stock moved between 464.90p and 473.00p during the day.
- Tesco reported it bought back 1.93 million more shares for cancellation as part of its £750 million buyback plan, according to its latest filing.
- Tesco is set to deliver its Q1 trading statement on June 18, 2026, which is the next big catalyst.
Tesco PLC shares closed up 0.87% at 473.00p in London on Friday, rising 4.10p for the week, market data showed. The stock is still trading below its 52-week high at 508.00p, but stays well above the 52-week low at 392.60p. Investors are watching to see if the next trading update will support the rally.
FTSE 100 jumped 1.6% to 10,471.7 points on Friday as UK markets rallied, helped by talk of a possible U.S.-Iran peace deal that sent oil prices down and boosted risk appetite. Lower oil helps Tesco, as fuel costs ease and shoppers may keep spending. A rising FTSE often means more money into defensive blue-chip names like Tesco.
Tesco kept up its cash returns to shareholders. In a June 12 filing, it said it bought back 1,930,870 ordinary shares on June 11 at an average 473.51p each. The shares will be cancelled. Buybacks shrink the share count and can boost EPS, or earnings per share, which is profit divided by shares. Tesco has now bought 66,718,610 shares for £304.2 million since the buyback started April 22.
Tesco’s next big test comes with its Q1 trading statement out June 18, as listed on the company’s financial calendar. Investors are watching for signs that UK market-share gains, online growth, and tight pricing still balance out cost headwinds from wages, energy, and food. Hargreaves Lansdown’s Aarin Chiekrie wrote on June 12 that Tesco’s first-quarter update “should see sales continue to trend higher,” but warned growth could slow if high oil prices squeeze household budgets. HL
Tesco bulls say scale is paying off. In April, Tesco posted FY 2025/26 sales excluding VAT and fuel at £66.59 billion, up 4.6%. Adjusted operating profit came in at £3.15 billion, with free cash flow at £1.96 billion. Adjusted operating profit strips out certain items, which investors watch to track core trading. CEO Ken Murphy said Tesco will “do whatever we can to help keep down the cost of the weekly shop.” Tesco also said it has its highest market share in over ten years. Investegate
Bears point out much of the upside might be in the price. Tesco is guiding for FY 2026/27 adjusted operating profit of £3.0 billion to £3.3 billion, not much higher than the £3.15 billion reported last year. UK grocery inflation slowed to 3.1% in the four weeks to May 17. But Reuters said shoppers relied more on promotions, and Tesco with Sainsbury’s kept gaining share. Volume growth and margins are still tough.
Tesco isn’t trading at a big discount right now. According to Hargreaves Lansdown, the grocer has a £29.72 billion market cap, trades at 15.89 times earnings, and yields 3.07% in dividends. The PE ratio is calculated as share price divided by EPS; the yield reflects annual dividends as a slice of share price. Buybacks, solid cash generation and market-share strength help the story, but the shares sit toward the top of their range for the year. Any sign of slower sales, margin pressure or a more guarded outlook in Thursday’s update could hit the price.
