M&S earnings: guidance and results
MyStockButler's October 2026 analysis: M&S's next results are expected on November 4, 2026. Watch whether Food expansion and good availability remain profitable after wages, distribution and waste.
What has M&S guided for 2026/27?
The investment promise is clearer. M&S plans £650m–£750m of capital expenditure net of disposals in 2026/27. Capital expenditure is money spent on assets that should serve the business for years; “net of disposals” subtracts money received from selling assets. The detailed plan includes 18 new Food stores and gives Food 66.7% of the allocation.
| Period | Low | High | Given on | |
|---|---|---|---|---|
| M&S capital expenditure net of disposals | 2026/27 | 650 | 750 | 20 May 2026 |
| Food capital allocation (%) | 2026/27 | 66.7% | 66.7% | 20 May 2026 |
| New Food stores | 2026/27 | 18 | 18 | 20 May 2026 |
| Food operating margin | 2027/28 | 4.0% | 1 June 2026 | |
| Fashion, Home & Beauty operating margin | 2027/28 | 10.0% | 10.0% | 1 June 2026 |
Has M&S kept its past promises?
That record suggests broadly realistic investment plans, but it also means investors must now test delivery rather than accept ambition. The spending plan leads directly to the question of what analysts expect it to achieve.
| What management forecast | Checked | Above | Within | Below |
|---|---|---|---|---|
| Capital expenditure | 4 years | 2 | 1 | 1 |
| Effective tax rate on profit before tax and adjusting items | 4 years | 0 | 1 | 3 |
What do M&S's last eight reported periods show?
Food’s final-quarter sales grew 7.1%, with like-for-like growth of 6.8%. Fashion, Home & Beauty returned to 4.3% growth after three quarters of decline. Store and online sales both improved, which suggests that recovery reached more than one channel.
Quarterly operating profit is not disclosed, so sales cannot yet be matched to a quarterly margin. The six-month comparison is also unusually favourable because the earlier period absorbed the Ocado investment impairment. Management’s second-half adjusted profit-before-tax growth was only 4.1%, a quieter measure of progress.
| 6 months to Mar 2026 | 6 months to Sep 2025 | 6 months to Mar 2025 | 6 months to Sep 2024 | 6 months to Mar 2024 | 6 months to Sep 2023 | 6 months to Apr 2023 | 6 months to Oct 2022 | |
|---|---|---|---|---|---|---|---|---|
| Revenue | 9,331.3 | 7,942.3 | 7,335.8 | 6,481.0 | 6,906.1 | 6,134.0 | 6,393.1 | 5,538.2 |
| Operating income | 445.7 | 91.0 | 175.6 | 448.7 | 399.2 | 315.0 | 343.6 | 171.5 |
| Net income | 253.2 | 6.2 | 13.6 | 282.1 | 223.2 | 208.0 | 197.3 | 166.1 |
| EPS, diluted | 12.00 | 0.30 | 0.60 | 13.40 | 10.80 | 10.00 | 9.60 | 8.30 |
| Cash from operations | 1,010.3 | 165.7 | 917.2 | 395.8 | 819.5 | 482.2 | 729.9 | 300.0 |
| = Free cash flow | 305.4 | -214.0 | 437.8 | 50.1 | 416.5 | 97.2 | 343.4 | -83.6 |
What this means. This report subtracts lease payments and interest paid as well as equipment spending when calculating free cash flow, so its figure is lower than a simpler measure.
What should I watch in M&S's next results?
For clothing, investors should watch full-price sales, stock availability and the cost of moving orders through the network. Revenue can rise while heavy discounting destroys margin. For Food, the test is whether expansion and good availability remain profitable after wages, distribution and waste.