UK supermarket chain Sainsbury’s has raised the lower end of its full-year profit guidance for 2026/2027, citing grocery volume growth and market share gains in the first half (H1).

The company now forecasts full-year continuing underlying operating profit of £1.025bn ($1.372bn) to £1.065bn, raising the lower end from its previous guidance of £965m to £1.065bn.

For the half ending 12 September 2026, continuing underlying operating profit increased 3.6% to £525m, underlying profit before tax grew 5.2% to £366m, and underlying basic earnings per share rose 10.4% to 11.7 pence.

Total group revenue including fuel climbed 4.1% to £16.24bn.

Continuing underlying sales excluding fuel advanced 2.6% to £13.95bn, lifted by a 2.9% increase in grocery sales to £13.18bn.

Fuel sales gained 17.8% to £2.28bn on higher wholesale costs, whereas general merchandise and clothing sales fell 3.4% to £777m amid space reallocation towards food and subdued clothing demand.

On a statutory basis, the retailer recorded a £164m loss after tax, down from a £155m profit in H1 2025/2026.

This was driven by a £376m post-tax loss from Argos as a discontinued operation, which offset an 11.6% increase in continuing statutory profit after tax to £212m.

Total basic loss per share reached 7.4 pence. Sainsbury’s also completed £200m of its £300m share buyback.

In the final year of its three-year “Next Level Sainsbury's” programme, the group opened two supermarkets and 14 convenience stores.

Commercial developments included launching personal loans and savings with NatWest under Sainsbury’s Money, agreeing a ten-year cucumber supply deal with Thanet Earth, and extending its Woodland Trust partnership.

Argos sales fell 1.8%, with divestment completion scheduled for late February 2027 and separation planned by February 2029.

Sainsbury’s CEO Simon Roberts said: “As we progress the sale of Argos and further sharpen our focus on food, we are building a simpler, more focused Sainsbury's. With great value, outstanding quality and exciting new food across our ranges, we’re looking forward to helping customers enjoy a really special Christmas.”

In July, Sainsbury’s signed a deal to sell Argos to Swift Partners for £120m.

Under the agreement, at least £70m will be paid on completion, with a further £50m due over the following three years.