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The supermarket chain said that it now expects to exceed gross margins excluding fuel sales for the 12-month period by approximately 40 basis points.
Shares in the company climbed on the FTSE 100 stock market following the announcement, rising by over nine per cent to 277.50p at 13:45 BST.
The retailer said that it had experienced a "strong start to the year", with improved sales continuing into the second quarter.
It added that the financial performance has been aided by increased efficiency across its supply chain, giving it "a solid base for the remainder of the year".
Analysts at Cazenove raised their full-year profit expectations for Morrisons from £659 million to £729 million following the announcement, noting that the supermarket has made a "welcome return to the upgrade cycle".
