AO Group raised its fiscal 2026 revenue guidance after reporting stronger-than-anticipated second-quarter results on Tuesday.
The UK-based home appliance retailer said revenue for the quarter ended September 30 rose 6% year-over-year to £542 million, exceeding market expectations. Adjusted profit before tax increased to £24 million from £15 million in the same period last year.
AO attributed the outperformance to higher demand for kitchen appliances and improved operational efficiencies. The company also noted a 12% increase in online sales, which now account for 85% of total revenue.
In response to the results, AO revised its full-year revenue guidance upward, now targeting between £2.3 billion and £2.4 billion for fiscal 2026, up from its previous forecast of £2.1 billion to £2.2 billion. The company maintained its profitability outlook, citing continued cost discipline and supply chain optimizations.
AO’s shares were up 4% in early London trading, outperforming the FTSE 250 index, which was flat on the day. Analysts at Jefferies reiterated a hold rating but raised the price target to 180 pence from 150 pence, citing the improved outlook.
The company’s management highlighted ongoing investments in digital platforms and logistics as key drivers of growth. AO also emphasized its commitment to expanding its market share in the UK and Germany, its two largest markets.
AO Group is a specialist retailer of domestic appliances, offering products under brands including AO and Hotpoint.
