Ocado Shares Surge: Can it Sustain the Upside Momentum?

Ocado (LON: OCDO) shares jumped more than 12% on Thursday, touching a high of 267p, following the release of its half-year results. 

The move marks a notable rebound from recent lows just below 225p, a level that had acted as support in recent months. 

However, with the stock still ranking as the fifth most shorted in London, with 5.9% of its shares out on loan, questions remain over whether this rally has legs.

Investors responded positively to signs of improved financial performance, particularly in the Technology Solutions division, where adjusted EBITDA more than doubled year-on-year to £72.8 million. 

Group revenue rose 13.2% to £674 million, with Technology solutions rising 14.9% and Ocado Logistics up 12.1%. Total adjusted EBITDA reached £91.8 million, up from £52 million a year ago. 

CEO Tim Steiner highlighted progress in both UK and international operations and reiterated the company’s goal to turn cash flow positive in FY26. 

He also noted Ocado’s growing global pipeline, with new customer fulfilment centres planned in Europe, Asia, and the US.

“Ocado Group has delivered a strong first half and we have reached important milestones both in our UK business, as well as across our international partnerships,” stated Stainer. 

“Our underlying cash flow has improved significantly, ending the period with liquidity in excess of £1 billion. Our focus remains on turning cash flow positive during FY26, supported by continued growth with our partners and cost discipline across the business.”