Q3 AND CHRISTMAS TRADING STATEMENT 2025/26.

Like-for-like sales (exc. VAT, exc. Fuel)

Q3 covers the 13 weeks to 22 November 2025 and Christmas covers the 6 weeks to 3 January 2026

Ken Murphy, Chief Executive:

"I am delighted with the strong Christmas we delivered for our customers. Our investments in value, quality and service drove further gains in customer satisfaction and strong growth in fresh food, contributing to our highest UK market share in over a decade.

In addition to further strengthening our price position, we launched 340 new and improved own-brand Christmas products including 180 in Finest, which once again delivered double-digit sales growth. We also recruited 28,500 additional colleagues for the festive period and offered an extra 100,000 online delivery slots in the week before Christmas, enabled by AI-powered scheduling tools developed by our technology and logistics teams. Online sales grew double-digit and Whoosh also performed strongly, with more than 250,000 new customers over the period.

Competition is as intense as ever and we know value remains a priority for customers. We are determined to help customers make their money go further, and earlier this week expanded our Everyday Low Prices commitment to over 3,000 branded products, sitting alongside Aldi Price Match on more than 650 lines and thousands of exclusive offers through Clubcard Prices.

I would like to thank all our colleagues for the exceptional service they have given to our customers over this important period; this has been a real team effort. We are well positioned for the year ahead and remain committed to ensuring customers get the best possible value by shopping at Tesco."

Performance highlights¹.

UK:  Highest market share for over a decade, driven by investments across the shopping trip

ROI:  Strong performance driven by fresh food

Booker:  Continued solid growth in core, offset by tobacco market decline and contract exit

Central Europe:  Sales growth underpinned by fresh food performance, continued growth in Finest and online

Outlook.

Following a strong Christmas performance, we now expect to deliver FY 25/26 Group adjusted operating profit at the upper end of the £2.9bn to £3.1bn guidance range we issued in October. We continue to expect Free cash flow within our medium-term guidance range of £1.4bn to £1.8bn.

FY 25/26 is a 53-week financial year, but for comparability we will also report our key financial metrics on a 52-week basis. All financial guidance is provided on a 52-week basis.

Contacts.

A call for investors and analysts will be held today at 9:00am. A link will be available on our website at www.tescoplc.com/investors. A transcript and playback facility will also be made available after the call.

We will report our Preliminary Results on Thursday 16 April 2026.

LEI: 2138002P5RNKC5W2JZ46

Notes.

1.     Sales growth percentages refer to like-for-like change over the 19 weeks unless otherwise stated

2.     UK market share based on Worldpanel by Numerator Total Grocers Total Till Roll for 4 & 12 weeks ended 28 December 2025

3.     Customer satisfaction and Brand NPS is based on BASIS Global Brand Tracker for 13 weeks ended 23 November 2025. Responses to the question: "How likely is it that you would recommend the following company to a friend or colleague as a place to shop?"

4.     UK Price index is an internal measure calculated using the retail selling price of each item on a per unit or unit of measure basis. Competitor retail selling prices are collected weekly by a third party. The price index includes price cut promotions and is weighted by sales to reflect customer importance

5.     ROI market share based on Worldpanel by Numerator Total Take Home Grocery for 12 weeks ended 30 November 2025