Sainsbury’s reported 3.4% like-for-like sales growth in the fiscal third quarter. Shares dropped 6% on Jan. 9, 2026. Grocery sales increased by 5.4%, driven by 8% growth in fresh food. Management reaffirmed full-year profit guidance of over £1 billion. Morningstar maintains a fair value estimate of GBX 341 per share for Sainsbury’s.

Sainsbury’s saw a market share gain and sequential improvement in volume growth. The company’s premium private-label range supported growth. Full-year retail free cash flow outlook was raised to around £550 million. UK household budgets are tight, favoring eating at home. Sainsbury’s will report fiscal 2026 results on April 23.

Read more at Morningstar: Sainsbury’s: Solid Grocery Sales Offset by Weaker General Merchandise