Marks & Spencer FY 2026 earnings preview: Can the retailer maintain transformation momentum?
M&S reports full-year results on 20 May, with investors focused on whether food growth and operational improvements can offset clothing challenges and cyberattack impacts.
Marks & Spencer FY 2026 earnings preview: Can the retailer maintain transformation momentum?
Marks & Spencer is set to report its full-year 2025/26 results on 20 May, with investors closely watching whether the retailer can maintain the strong operational momentum that has transformed the business over the past two years. The update comes at a pivotal stage for M&S, as the company balances continued growth in its core food division against ongoing challenges in clothing and the lingering effects of last year's cyberattack disruption.
Year-to-date the Marks & Spencer share price has fallen by 4% but over the past five years it gained 99% on a total annualised return basis and 104% on a total return (by re-investing dividends) basis.
M&S 5-year total return graph
Strong turnaround story faces new tests
M&S enters the results period following a dramatic improvement in financial performance over recent years. In full-year 2025, the retailer delivered group revenue of £13.82 billion and adjusted pre-tax profit of £875.5 million, its strongest profit performance in more than a decade.
The turnaround under chief executive Stuart Machin has been driven by significant improvements across food, clothing and store operations, alongside tighter cost control and a stronger focus on value and quality. Investors will now be looking to see whether this momentum has continued into FY 2026.
Recent trading updates suggest performance has remained mixed but broadly resilient. Christmas food sales were particularly strong, with food sales at established stores rising by 5.6%, while online grocery sales through Ocado Retail also delivered robust growth. However, clothing, home and beauty sales were weaker, partly due to the continuing fallout from the cyberattack that disrupted online operations and inventory management during 2025.
Analyst expectations
According to LSEG Data & Analytics, for FY 2026 revenue is projected to come in at £16.47 billion, up around 19% compared to the previous year, but adjusted pre-tax profit at £603.6, around 31% lower than in the prior year. Earnings per share is expected at 22.66 pence, around 26% lower than a year ago.
Analysts rate M&S as a ‘buy’, with a mean long-term price target at 426p, around 35% above current levels (as of 14 May 2026).
TipRanks has a ‘5 Neutral’ Smart Score for Marks and Spencer but a ‘strong buy’ rating.
Food division continues to lead
The food business remains the standout performer within M&S and is increasingly central to the investment case. The retailer has continued to gain market share in premium grocery, supported by strong demand for convenience products, seasonal ranges and value-focused offerings.
Management has accelerated its strategy of reshaping the estate around food-led formats, including the opening of new standalone food halls and refurbishment of existing locations. Recent store investments form part of a broader £90 million upgrade programme aimed at modernising the customer experience and strengthening the brand’s competitive position.
This continued expansion reflects management’s confidence that food can remain a long-term growth engine, even as broader consumer spending remains under pressure.
Clothing recovery still uneven
While M&S has made substantial progress in revitalising its clothing business, the division still faces challenges. The cyberattack disruption weighed on online fulfilment and stock availability during parts of FY 2026, affecting sales momentum and operational efficiency.
At the same time, the broader UK apparel market remains highly competitive, with consumers still cautious around discretionary spending. Investors will therefore be watching closely for any signs that fashion and home sales are stabilising and whether online operations have fully recovered.
Margin expansion and cost discipline
Another key theme heading into the results is profitability. M&S has benefited from operational efficiencies, supply-chain improvements and reduced discounting in recent years, helping margins recover sharply.
However, cost pressures remain elevated, particularly across wages, logistics and energy. The recent rise in oil prices may also increase transport and distribution costs across the retail sector.
Investors will therefore focus on whether M&S can continue expanding margins while maintaining competitive pricing and investment in growth initiatives.
Cyberattack fallout still relevant
Although the operational impact has eased, the fallout from last year’s cyberattack continues to influence investor sentiment. Earlier estimates suggested the incident could reduce operating profit by approximately £300 million due to disruption costs, stock inefficiencies and lost online sales.
The full-year results are expected to provide further detail on recovery progress, insurance offsets and improvements in cyber resilience.
What investors will watch on 20 May
The market will focus heavily on several critical areas:
Food sales growth and market share progression
Clothing recovery trends and online normalisation
Group profitability and operating margin expansion
Cash flow generation demonstrating quality
Capital allocation including dividends and store investment
Guidance for FY 2027 on demand and margins
What the results mean for investors
Marks & Spencer enters its FY 2026 results in a much stronger position than it occupied only a few years ago, with food momentum, operational improvements and stronger brand perception underpinning the recovery story.
However, expectations have risen significantly, and the business now faces a more challenging macroeconomic environment alongside execution risks in clothing and online retail.
If M&S can demonstrate continued sales growth and resilient profitability despite these pressures, confidence in the long-term transformation strategy is likely to strengthen further. Conversely, any slowdown in momentum or renewed operational disruption could raise questions about how sustainable the recovery truly is.
Technical analysis
The Marks & Spencer share price has been sliding for four straight weeks and looks to be falling through key technical support, made up of its January 2025-to-March 2026 lows.
Marks & Spencer weekly candlestick chart
The company’s share price is trading at levels last seen in August 2024 and may reach the January 2024 high and August 2024 low at 299.5p-to-293.2p which together offer potential support.
The next lower July 2024 low at 283.0p may be reached as well in the above scenario.
Further down meanders the 200-week simple moving average (SMA) at 274.5p which represents another possible downside target.
Only a bullish reversal and daily chart close above the current May high at 338.3p may change the technically bearish outlook to a more neutral one. If this resistance level were to be overcome, a recovery towards the 200-day simple moving average (SMA) at 357.1p may ensue.
Marks & Spencer daily candlestick chart
How to invest in M&S shares
Investors interested in UK retail transformation exposure through M&S have several options. Here's how to approach investing:
Research M&S' latest results, food and clothing market trends and turnaround execution thoroughly. Understanding retail economics and transformation challenges helps inform decisions. How to invest in stocks provides background.
Download IG Invest or open a share dealing account to access UK-listed shares. M&S trades under ticker MKS.
Search for Marks & Spencer Group plc shares on the trading platform. Review pricing, transformation progress and recommendations.
Choose the number of shares or investment value based on your portfolio strategy. Consider whether to hold shares in a general account, ISA or SIPP for tax efficiency.
Place your trade and monitor your investment over time. M&S provides half-yearly results and quarterly updates.
Remember retail stocks are cyclical and turnarounds carry execution risks. Diversification reduces concentration risk whilst maintaining exposure to UK retail sector and trading transformation opportunities.
Important to know
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