London, January 19, 2026, 10:14 GMT — Regular session
- Shares in Tesco PLC rose 1.2% to 427.1 pence during London trading
- Retailer revealed new buyback activity, bringing total repurchases since April 2025 to £1.448 billion
- Investors are eyeing the preliminary results on April 16 for fresh insights into profits and cash returns
Tesco PLC shares climbed 1.2% to 427.1 pence by 1001 GMT on Monday following the announcement of another share buyback. The stock started the day at 428.7p, fluctuating between 424.7p and 430.1p, after closing at 422.0p on Friday.
This shift is significant as UK grocers rely heavily on cash returns to hold investor interest amid a price-driven battle for customers. With Tesco’s buyback nearing its targeted scale, focus is turning to how capital returns will fare once the share repurchases ease off.
Tesco reported buying 471,892 shares on Jan. 16 at an average price of 423.82 pence, part of its £1.45 billion share buyback scheme. Citigroup Global Markets served as the broker. The retailer confirmed it will cancel these shares. Since kicking off the programme in April 2025, Tesco has repurchased 351,229,317 shares at a cost of £1,448.2 million. Following the latest buyback, 6,385,612,445 shares remain outstanding.
In a trading update on Jan. 8, Tesco said full-year adjusted operating profit is now expected at the top end of its £2.9 billion to £3.1 billion forecast, boosted by a stronger Christmas for food. CEO Ken Murphy noted that “competition is as intense as ever,” as the retailer pushed its “Everyday Low Prices” range alongside Aldi Price Match lines and Clubcard deals. Investegate
A share buyback occurs when a company buys back its own shares, usually cancelling them, which reduces the total number of shares outstanding. This can boost earnings per share, even if profits aren’t growing strongly.
For traders, buyback support is just one piece of the puzzle. Tesco’s stock will still respond to the usual factors: the intensity of price cuts in the sector, whether sales volumes remain steady, and how much margin the major chains sacrifice to maintain their edge.
The downside is clear. Should competitors keep prices down for an extended period, Tesco may need to boost spending on shelf prices and promotions. That would squeeze profits and complicate efforts to support capital returns.
Tesco’s preliminary results are due April 16, revealing its full-year performance and plans following the current buyback.
