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Do your thoughts align with the Bull or Bear Analysts? Perhaps you think there’s more to the story. Head to the Simply Wall St Community to discover more perspectives or begin writing your own Narrative!

• Solution International Nordics AB is rolling out a “one stop shop” bathtime product display in Tesco stores within the baby aisle as part of a joint 2026/27 promotional plan. The initiative is aimed at driving incremental sales and highlighting Tesco’s role in bringing new baby ranges to market across UK and Ireland warehouses and stores.

• A new Pacvue partnership with Tesco Media, integrated via Epsilon Retail Media, gives brands the ability to run, optimise and measure sponsored product campaigns on Tesco alongside other retailers. This uses a custom “Sales at Checkout” metric that reflects Tesco’s fulfilment based attribution model and is standardised within Pacvue for cross retailer reporting.

• Pacvue is extending its full suite of reporting, automation and optimisation tools to Tesco Media campaigns. This includes Share of Voice analytics, custom dashboards and automated bidding and budget pacing, which allows advertisers to manage Tesco and other major marketplaces in a single workflow.

• Solution International is expanding its “Grow with Peppa” character merchandise range in Tesco, with six SKUs in two colour formats for early independent eating available in up to 510 stores across the UK and Ireland and on Tesco’s eCommerce platform. This is alongside projected annual revenue of over SEK 3m and plans for a further baby focused initiative in 2026/27.

• Fair value was trimmed slightly from £4.84 to £4.80 per share. This is a small adjustment in the model output and suggests that the core thesis remains broadly intact.

• The discount rate was nudged higher from 7.96% to 8.13%. This indicates a modestly higher risk input in the valuation work and places a bit more weight on uncertainty in the cash flow outlook.

• The revenue growth assumption was lifted from 2.86% to 2.95%. This is a very small step up in the projected top line trend used in the model and leans gently toward a steadier sales profile.

• The profit margin was eased from 2.79% to 2.76%. This reflects a minor tweak to long run profitability assumptions and a slightly more cautious stance on how much earnings the business can retain from each pound of sales.

• The future P/E was kept effectively steady, moving fractionally from 16.84x to 16.86x. The earnings multiple input is largely unchanged, so the main story sits in the cash flow and margin adjustments rather than in what investors might pay per pound of earnings.

Narratives on Simply Wall St let you connect Tesco’s story to the numbers by linking your view on its future revenue, earnings and margins to a fair value estimate. Instead of just looking at ratios, you see how a clear, written thesis translates into a forecast and then into a valuation. Narratives live on the Community page, update automatically when fresh news or earnings arrive, and help you decide what to do by comparing Fair Value to today’s Price.

Head over to the Simply Wall St Community and follow the Tesco Narrative to stay on top of how the story and the numbers fit together:

• How investments in quality, digital expansion and customer experience are tied to forecasts for revenue growth, margins and earnings per share up to about 2028.

• Why higher risk assumptions, stable margin expectations and a future P/E of around 16.8x are used to bridge from Tesco’s earnings outlook to an estimated fair value near £4.80.

• What could challenge the thesis, including competition, household budget pressure, higher wage and supplier costs, and how these risks might affect the gap between Fair Value and the current share price.

Read the full Tesco Narrative on Simply Wall St to see the complete earnings, margin and valuation story in one place.

Curious how numbers become stories that shape markets? Explore Community Narratives

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include TSCO.L.

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