Tesco PLC

Strong performance vs expectations (good/surprising): Group delivered 4.3% sales growth (constant FX) and like-for-like sales +3.5%, with adjusted operating profit up ~0.6% (constant rates) to £3.15bn. EPS up 6% to 29p. Free cash flow £1.96bn (+12% YoY), ahead of the top end of guidance—driven by market-share gains + Save to Invest savings (~£535m contribution) more than offsetting customer-offer investments and elevated operating cost inflation.

Customer & market momentum remains the engine (good): Highest UK market share in a decade—UK share 28.5% (outperformed on both volume and value; +120 bps total gain over 3 years). Ireland share 24.2% (up +32 bps YoY, 4th year of gains). Net Promoter Score increased vs competition with improving value perception; pricing actions included 3,000 everyday low prices, 10,000+ Clubcard prices, and 600+ Aldi Price Match lines; ending year with 10,000+ prices lower than at the start.

Returns to shareholders (good): Returned £2.4bn via dividends + buybacks. Final dividend 9.7p for full-year 14.5p (+5.8% YoY) (~50% payout target). Also announced an additional £750m share buyback for the year ahead. Balance sheet described as investment-grade with net debt/EBITDA 2.1x.