Tesco warns profits may dip amid Middle East conflict uncertainty
Business
Tesco, the U.K.'s top supermarket, says profits might dip in the year ahead because of uncertainty from the Middle East conflict, even though they just posted strong results: £2.4 billion in profits (up 8.5%) and £66.6 billion in sales.
Tesco expects £3bn-£3.3bn profits, cuts prices
Looking ahead, Tesco expects profits between £3 billion to £3.3 billion and is doubling down on keeping prices low, having slashed prices on more than 10,000 products over the past year (in the year to 28 February 2026).
They're also investing in AI to save £500 million and help weather economic ups and downs.
CEO Ken Murphy says supporting UK households remains a priority, with staff bonuses and shareholder payouts reflecting their solid market position.