Ocado's share price plummeted by nearly 15% on Thursday after a significant drop in pre-tax profits was announced. The online grocery technology firm reported just £17 million in pre-tax profits for the six months ending 31 May 2026, compared to £607 million in the same period last year. This substantial decline has contributed to a share price fall that takes the company's valuation to its lowest point in over a decade.
Speculation surrounding leadership changes at Ocado is ongoing, with chief executive Tim Steiner set to step down in 2028 and transition into a 'founder role' until 2029. His comments follow reports that chairman Adam Warby initiated a search for a new CEO without consulting him, prompting Steiner to address the apparent tensions. "I have no intention of being a puppet master and controlling everybody," he stated, adding that any potential successor he had spoken to was comfortable with his continued involvement.
Ocado anticipates achieving positive cashflow by its year-end in November 2026 and is committed to leading the company through its next phase. The firm expects to secure new clients in the US within the next six to twelve months, plans to open robot-run distribution centres in South Korea, Japan, and Phoenix, Arizona, later this year, and may require additional facilities in the UK from 2028 to support the growth of its retail joint venture with Marks & Spencer.
Market analysts remain cautious about Ocado's prospects. "The group remains loss-making, with cash burn still evident, albeit improving," noted Adam Vettese from etoro. He highlighted ongoing concerns about international technology adoption and partner setbacks, which have contributed to the negative market reaction and doubts about execution and the timeline to achieving consistent cashflow positivity.