London, June 16, 2026, 13:08 BST
- Tesco was near 461p on Tuesday after ending Monday at 463.4p. The stock lagged the FTSE 100, which moved higher.
- Tesco bought 1.94 million shares on June 15, its latest filing showed. The shares are part of the £750 million buyback program.
- Tesco’s Q1 trading statement comes out June 18, with traders watching it as the next likely catalyst.
Tesco PLC shares fell Tuesday, underperforming the wider London market before the retailer’s first-quarter release due this week. By 12:53 BST, Tesco was at 461.0p, down from 463.4p at Monday’s close, according to Investors Chronicle. Shares started the session at 464.4p, trading between 458.6p and 466.3p. That followed a sharper decline Monday, when MarketWatch reported Tesco lost 2.03% to £4.63 as the FTSE 100 slipped 0.39%. Tuesday, the FTSE 100 was up 0.6% late morning, Reuters said, as financials and industrials rose and oil edged lower.
Tesco shares underperformed on the session. No new profit warning appeared, and the latest disclosure focused on share buybacks. Tesco said in an RNS announcement posted on Investegate that it bought 1,942,707 ordinary shares on June 15 at an average price of 468.38p. Tesco plans to cancel these shares. Cutting the share count this way can lift EPS when profits are unchanged. The company has repurchased 70.6 million shares for a total £322.5 million since April 22, the filing said.
Tesco’s buyback hasn’t really moved the shares. Investors still want to see proper sales or margin numbers. The company’s financial calendar lists a Q1 Trading Statement 2026/27 in June 2026, after a previous notice put the date as June 18. It’s in focus now while the market watches to see if Tesco can keep its UK grocery share without letting margin slip to price cuts, Clubcard offers, or competing with Aldi on price.
Still some positives for Tesco bulls. The supermarket keeps its lead in the UK as Worldpanel by Numerator says like-for-like grocery inflation fell to 3.1% in the four weeks to May 17. That’s some relief for shoppers after a stretch of high food bills. Back in April, Reuters said Tesco wants adjusted operating profit between £3.0 billion and £3.3 billion for the year ending February 2027, up from £3.152 billion expected for 2025/26. Adjusted op profit strips out one-offs and non-core charges. CEO Ken Murphy told reporters, “We are not flagging any issues in our supply chain at this point,” according to Reuters.
Tesco shares are pricing in steady results, giving little space for slip-ups. Investors Chronicle shows the stock about 9% below this year’s 52-week peak of 508.2p, with a trailing P/E at 17.5 and dividend yield at 3.13%. Hargreaves Lansdown puts the P/E at 15.71, yield at 3.15%. The numbers suggest stable sentiment. Bernstein’s William Woods called Tesco’s guidance in April “careful and conservative,” as per Reuters. The company is working to keep cash flowing and continue buybacks, while it deals with tougher competition and shoppers hit by higher costs.
Tesco shares are at about 461p. The stock doesn’t look cheap. Tesco gets support from its buyback, big market share, and status as a defensive food play. But after shares slipped Monday and lagged the FTSE 100’s gains Tuesday, investors want more reason to buy. The Q1 update is due June 18. Bulls want to see good like-for-like sales and steady margins. If Tesco signals heavier price cuts to keep up with rivals, the current valuation could take a hit.
