Tesco (MEX:TSCON) Operating Income: MXN75,895 Mil (TTM As of Feb. 2026)


MEX:TSCON Tesco PLC MEX:TSCON
73 GF Score
Price MXN109.79
GF Value MXN96.52
Valuation Modestly Overvalued
! 4 Warning Signs
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What is Tesco Operating Income?

Tesco MEX:TSCON 73 Operating Income is MXN75,895 Mil as of Feb. 2026. GuruFocus rates MEX:TSCON with a GF Score™ of 73/100 and a GF Value™ of MXN96.52 (Modestly Overvalued). The stock has 4 warning signs investors should review.

Tesco's Operating Income for the six months ended in Feb. 2026 was MXN33,833 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Feb. 2026 was MXN75,895 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Tesco's Operating Income for the six months ended in Feb. 2026 was MXN33,833 Mil. Tesco's Revenue for the six months ended in Feb. 2026 was MXN881,531 Mil. Therefore, Tesco's Operating Margin % for the quarter that ended in Feb. 2026 was 3.84%.

Good Sign:

Tesco PLC operating margin is expanding. Margin expansion is usually a good sign.

Tesco's 5-Year average Growth Rate for Operating Margin % was 3.90% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Tesco's annualized ROC % for the quarter that ended in Feb. 2026 was 6.15%. Tesco's annualized ROC (Joel Greenblatt) % for the quarter that ended in Feb. 2026 was 12.23%.

Tesco  (MEX:TSCON) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Tesco's annualized ROC % for the quarter that ended in Feb. 2026 is calculated as:

ROC % (Q: Feb. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Aug. 2025 ) + Invested Capital (Q: Feb. 2026 ))/ count )
=67666.12 * ( 1 - 23.77% )/( (868445.651 + 808787.958)/ 2 )
=51581.883276/838616.8045
=6.15 %

where

Invested Capital(Q: Aug. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1002956.743 - 292401.071 - ( 115879.06 - max(0, 392059.601 - 234169.622+115879.06))
=868445.651

Invested Capital(Q: Feb. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=923600.424 - 251595.363 - ( 96772.847 - max(0, 335265.503 - 198482.606+96772.847))
=808787.958

Note: The Operating Income data used here is two times the semi-annual (Feb. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Tesco's annualized ROC (Joel Greenblatt) % for the quarter that ended in Feb. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Feb. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Aug. 2025  Q: Feb. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=69397.55/( ( (584802.142 + max(-200078.588, 0)) + (549962.709 + max(-175459.279, 0)) )/ 2 )
=69397.55/( ( 584802.142 + 549962.709 )/ 2 )
=69397.55/567382.4255
=12.23 %

where Working Capital is:

Working Capital(Q: Aug. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(32999.513 + 77117.324 + 8173.725) - (292401.071 + 0 + 25968.079)
=-200078.588

Working Capital(Q: Feb. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(30838.156 + 66449.44 + 4422.163) - (251595.363 + 0 + 25573.675)
=-175459.279

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Feb. 2026) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Tesco's Operating Margin % for the quarter that ended in Feb. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Feb. 2026 )/Revenue (Q: Feb. 2026 )
=33833.06/881531.377
=3.84 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Tesco Operating Income Related Terms

Tesco Operating Income Historical Data

* Premium members only.

The historical data trend for Tesco's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Tesco Operating Income Chart

Tesco Annual Data
Trend Feb17 Feb18 Feb19 Feb20 Feb21 Feb22 Feb23 Feb24 Feb25 Feb26
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 73,136.06 32,790.58 60,844.51 72,341.09 72,603.03

Tesco Semi-Annual Data
Aug16 Feb17 Aug17 Feb18 Aug18 Feb19 Aug19 Feb20 Aug20 Feb21 Aug21 Feb22 Aug22 Feb23 Aug23 Feb24 Aug24 Feb25 Aug25 Feb26
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 30,023.80 42,006.14 30,002.62 42,061.69 33,833.06
MEX:TSCON
73GF Score
Tesco PLC MEX:TSCON
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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Tesco Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Feb. 2026 adds up the semi-annually data reported by the company within the most recent 12 months, which was MXN75,895 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of MXN75,895 Mil mean?
Tesco (MEX:TSCON) has a Operating Income of MXN75,895 Mil as of Feb. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Tesco and its competitors.
Is Tesco's Operating Income too high?
Tesco's current Operating Income is MXN75,895 Mil. Overall, Tesco has a GF Score™ of 73/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tesco's Operating Income compare to KR and SFM?
Tesco's Operating Income of MXN75,895 Mil can be compared against companies in the Retail - Defensive industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Retail - Defensive company?
A good Operating Income depends on the Retail - Defensive industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Tesco and its competitors. Tesco's current Operating Income is MXN75,895 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tesco stock overvalued right now?
Based on GuruFocus' analysis, Tesco (MEX:TSCON) is currently considered Modestly Overvalued. The stock's GF Value™ is MXN96.52, compared to a current price of MXN109.79 — trading 13.7% above its estimated fair value. The current Operating Income is MXN75,895 Mil. Tesco's overall GF Score™ is 73/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Tesco (MEX:TSCON), the current Operating Income is MXN75,895 Mil as of Feb. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Tesco (MEX:TSCON) Overvalued in 2026?

Based on GuruFocus' analysis, Tesco stock appears to be overvalued. The current stock price of MXN109.79 is trading 13.7% above its estimated GF Value™ of MXN96.52. GuruFocus considers Tesco to be Modestly Overvalued.

Key valuation signals for MEX:TSCON:

  • Operating Income: MXN75,895 Mil
  • GF Value™: MXN96.52 vs. price of MXN109.79 (13.7% above fair value)
  • GF Score™: 73/100 with 4 warning signs

No single metric tells the full story. See the MEX:TSCON stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Tesco Business Description

Address Kestrel Way, Tesco House, Shire Park, Welwyn Garden, GBR, AL7 1GA
Tesco is a large food retailer, operating thousands of stores in the United Kingdom, Ireland, and Central Europe. The majority of Tesco's sales are from the UK, where the firm has over 24% market share, more than double the second-largest peer, Sainsbury's, according to Euromonitor. Tesco also holds 30% e-grocery market share in the UK, holding a dominant position online. Tesco gained exposure to the cash-and-carry and out-of-home delivery industries with the GBP 4 billion acquisition of Booker in 2018.
73GF Score

Get the complete analysis for MEX:TSCON

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

MXN109.79
Price
MXN96.52
GF Value