Sainsbury’s Forecasts Flat Profit in 25/26, Shares Rise

Sainsbury’s (LON: SBRY) reported its full-year results on Thursday, projecting stable profit for 2025/26, underpinned by strong grocery sales and a resilient balance sheet.

The supermarket giant’s shares rose over 3% in early trading following the report, currently trading around the 256p mark.

For the 52 weeks to 1 March 2025, retail sales excluding fuel rose 4.2% to £26.6 billion, while underlying retail operating profit increased 7.2% to £1.04 billion. 

Statutory profit after tax surged 77% to £242 million. Despite headwinds in its Argos and fuel divisions, Sainsbury’s reported strong momentum in Q4, with grocery sales up 4.1% and Argos up 1.9%.

Chief Executive Simon Roberts said the business had been “transformed” over the past four years, crediting Sainsbury’s value-led approach and innovation in loyalty through Nectar Prices. 

“We expect to continue to outperform the market,” he said, pointing to increased market share and a record for customer satisfaction in product availability.

For 2025/26, Sainsbury’s forecasts retail underlying operating profit of around £1 billion—broadly flat year-on-year—and over £500 million in retail free cash flow. 

The group also announced a £200 million share buyback and a special dividend of £250 million funded by the disposal of its banking assets.

“Profit delivery will be supported by continued growth in Nectar profit contribution and industry-leading cost saving delivery and will be weighted more towards the second half versus last year, reflecting the timing of benefits from space reallocation activity and new store openings,” said the retailer.