Tesco PLC confirmed it achieved profits at the higher end of its forecast range, driven by robust holiday season performance. The UK's largest supermarket chain saw a notable uplift in both transaction volume and average basket size during Q4 2025.
- Underlying pre-tax profit reached £1.39 billion for the fiscal year ending December 2025.
- Like-for-like sales rose 5.2% in Q4 2025, driven by holiday season demand.
- Digital sales grew 22% year-on-year, reflecting continued omnichannel adoption.
- Private-label products now make up 46% of grocery sales, supporting margin resilience.
- Share price increased 3.1% on January 8, 2026, following the announcement.
Tesco PLC has reported that its underlying pre-tax profit for the 12 months ending December 2025 reached £1.39 billion, aligning with the upper end of its previously issued guidance. This result reflects a 7% year-on-year increase in underlying profit, underscoring the strength of consumer demand during the critical holiday shopping period. The company attributed the performance to a 5.2% rise in like-for-like sales in the fourth quarter, supported by higher footfall and elevated average spending per transaction. The holiday season, particularly the period from late November through early January, contributed significantly to the results, with a 12% increase in grocery sales and a 15% growth in non-food categories, including electricals and home goods. Tesco's digital sales channels also saw a 22% year-on-year surge, highlighting the continued shift toward omnichannel retailing. The company maintained its focus on private-label expansion, which now accounts for 46% of total grocery sales, helping to bolster margins. The strong performance has prompted analysts to revise upward their earnings expectations for the fiscal year. Tesco’s share price rose 3.1% in early trading on January 8, 2026, reflecting investor confidence in the company’s pricing power and cost discipline. The results come amid broader sector challenges, including inflationary pressures and supply chain adjustments, making Tesco’s execution particularly noteworthy in a competitive market landscape.