Sainsbury's outlines cautious profit guidance, shares in FTSE 100 focus

By Stefan Krueger, Long-Term & Business Model desk. Reviewed prior to publication on 2026-06-28, 10:17.

J Sainsbury plc (GB00B019KW72) has reported resilient full-year 2025-26 figures with modest sales growth and a marked rebound in profit after tax, while setting a cautious operating profit range for 2026-27, according to a recent summary of its annual performance. A report on Sainsbury's FY 2025-26 results The London-listed FTSE 100 supermarket group remains exposed to intense UK grocery competition against peers such as Tesco.

What the latest figures show

For the 52 weeks ended 28 February 2026, Sainsbury's lifted sales excluding fuel by 4.9 percent year on year to £25.9 billion, while total group revenue excluding VAT but including fuel rose 2.7 percent to £33.6 billion, according to a recent results overview. The same FY 2025-26 results summary Retail underlying operating profit edged down 1.1 percent to £1,025 million as the group absorbed higher costs and continued to invest in stores, digital capabilities and wages.

Underlying profit before tax increased 1.3 percent to £718 million, and underlying earnings per share improved 3.2 percent to 22.3 pence over the year, highlighting a modest but positive earnings progression. The FY 2025-26 summary on Sainsbury's performance Profit after tax rose more sharply, by 55.3 percent, benefiting from lower one-off charges and demonstrating the effect of prior restructuring and efficiency measures.

Guidance and sector positioning

For the current financial year 2026-27, Sainsbury's guides for underlying operating profit in a range of £975 million to £1,075 million and expects retail free cash flow above £500 million, pointing to disciplined capital allocation alongside ongoing investment. The FY 2026-27 outlook as cited in the results overview The group emphasizes that it has outperformed the UK grocery market for six consecutive years as customers prioritize affordability during the cost-of-living squeeze.

Within the FTSE 100, Sainsbury's competes directly with Tesco and, in non-food categories, with general retailers such as Marks & Spencer, and its strategic balance between supermarkets, convenience formats and Argos continues to shape its long-term positioning. A price and listing overview for Sainsbury's shares in Frankfurt Management also highlights investment in price, store refurbishment and digital channels as tools to protect market share against discounters.

How Sainsbury's makes its money

Sainsbury's generates most of its revenue from UK grocery retail through its supermarkets and Sainsbury's Local convenience stores, complemented by general merchandise and electricals sold via Argos and Habitat across both physical formats and online channels. The group's investor information outlines its multi-format retail model The company also operates a banking arm under the Sainsbury's Bank brand, offering financial services such as credit cards, loans and insurance.

Where the Sainsbury's shares trade

The J Sainsbury plc shares (GB00B019KW72) trade on the London Stock Exchange within the FTSE 100 index; as of 2026-06-26, a Frankfurt quotation shows 3.65 euros on Finanzen100 for the SUY1 line, illustrating the parallel euro listing alongside the primary sterling line in London. The Frankfurt price overview for Sainsbury's

This article is for informational purposes only and does not constitute investment advice, investment recommendation or an offer or solicitation to buy or sell any financial instrument. Investors should conduct their own research and consider professional advice before making investment decisions.