2^nd October 2025

• Sales up 5.1% to £33.1 billion.

• Underlying operating profit up 1.6% to £1.7 billion.

• Full year guidance raised from £2.7-£3.0 billion to £2.9-£3.1 billion.

• Interim dividend raised 12.9% to 4.80p.

Derren Nathan, head of equity research, Hargreaves Lansdown: “Tesco’s stores and vans have delivered a little extra in the first half. Underlying operating profit of £1.7 billion came in a shade ahead of market forecasts, but intensified competition and cost pressures meant that growth in profits lagged sales by some margin. Still, management were confident enough to raise the mid-point of full-year profit guidance by 5% to £3.0 billion. It’s not a spectacular change, but every little helps.

Tesco’s broad offer to customers at all price-points is helping it to drive sustained market share gains, something it’s done in practically every month of the last two years. Competition remains fierce and household budgets are under pressure, but Tesco is well placed to continue investing in value and quality. However, the valuation feels broadly up with events, so today’s upgrade is unlikely to spark too much excitement on the stock market.”