Tesco widens profit guidance on Iran war uncertainty

(Sharecast News) - UK supermarket giant Tesco on Thursday widened guidance for 2026/27 to reflect increased uncertainty caused by the US-Israel war on Iran. British consumers have been caught in a cost-of-living squeeze since the Covid -19 pandemic and Russia's war on Ukraine as they endured higher prices, stagnant wage growth and rapidly shrinking product sizes - coined "shrinkflation" by critics.

The company said it was now targeting adjusted operating profit of between £3.0bn and £3.3bn after reporting a 0.8% rise in adjusted operating profit to £3.15bn, beating estimates of £3.10bn, according to a company-compiled consensus.

Sales excluding VAT and fuel rose 6.4% to £66.58bn.

"Much will depend upon the duration of the conflict and in particular, the potential implications for UK households and the economy more broadly," Tesco said in a statement.

Reporting by Frank Prenesti for Sharecast.com

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