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Kroger

KR Q1 2026 Earnings

Reported Jun 20, 2025 at 8:06 AM ET · SEC Source

Q1 26 EPS

$1.49

BEAT +2.23%

Est. $1.46

Q1 26 Revenue

$45.12B

MISS 0.42%

Est. $45.31B

vs S&P Since Q1 26

-25.2%

TRAILING MARKET

KR -3.9% vs S&P +21.3%

Market Reaction

Did KR Beat Earnings? Q1 2026 Results

Kroger delivered a solid if mixed fiscal first quarter, posting adjusted earnings per share of $1.49 against a consensus estimate of $1.46, a 2.23% beat, while revenue of $45.12 billion came in just 0.42% below expectations and slipped 0.3% from the … Read more Kroger delivered a solid if mixed fiscal first quarter, posting adjusted earnings per share of $1.49 against a consensus estimate of $1.46, a 2.23% beat, while revenue of $45.12 billion came in just 0.42% below expectations and slipped 0.3% from the year-ago period. The modest top-line decline, however, is largely a bookkeeping artifact: the prior-year quarter included $917 million from the since-divested Kroger Specialty Pharmacy, and stripping out both fuel and that divestiture, underlying sales grew 3.7%. Identical sales without fuel rose 3.2%, a meaningful acceleration from just 0.5% in the year-ago quarter, driven by strong momentum in pharmacy, fresh, and e-commerce, the latter surging 15%. The quarter also carried a $100 million impairment charge tied to the planned closure of roughly 60 underperforming stores over the next 18 months, a restructuring move Kroger says will generate a modest financial benefit that it intends to reinvest in the customer experience. On the strength of the quarter, management raised its full-year identical sales guidance to 2.25%–3.25%, though CFO David Kennerley cited macroeconomic uncertainty as reason to hold all other guidance steady, including adjusted EPS of $4.60–$4.80.

Key Takeaways

  • • Identical sales without fuel increased 3.2%, accelerating from 0.5% in the prior year
  • • eCommerce sales increased 15%
  • • Strong sales led by pharmacy, eCommerce, and fresh categories
  • • Gross margin improved to 23.0% from 22.0%, driven by Kroger Specialty Pharmacy divestiture, lower shrink, and lower supply chain costs
  • • FIFO gross margin rate excluding adjustments improved 79 basis points
  • • Sale of Kroger Specialty Pharmacy improved margin mix

KR Forward Guidance & Outlook

Kroger raised its full-year 2025 identical sales without fuel guidance to 2.25%–3.25% (from a lower prior range), reflecting strong Q1 momentum. All other guidance elements were reaffirmed: adjusted FIFO operating profit of $4.7–$4.9 billion, adjusted EPS of $4.60–$4.80, adjusted free cash flow of $2.8–$3.0 billion, and capital expenditures of $3.6–$3.8 billion. The adjusted effective tax rate is expected at 23%. Management noted macroeconomic uncertainty as a reason for maintaining other guidance despite the beat. The company plans to close approximately 60 stores over the next 18 months, expecting a modest financial benefit that will be reinvested into the customer experience. Kroger expects to complete its $5 billion ASR by fiscal Q3 2025 and the remaining $2.5 billion open market repurchases by fiscal year-end 2025.

24/7 Wall St

KR YoY Financials

Q1 2026 vs Q1 2025, source: SEC Filings

“Kroger delivered solid first quarter results, with strong sales led by pharmacy, eCommerce and fresh. We made good progress in streamlining our priorities, enhancing customer focus, and running great stores to improve the shopping experience.”

— Ron Sargent, Q1 2026 Earnings Press Release

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