Kroger (NYSE:KR) Posts Earnings Results, Misses Estimates By $0.01 EPS

Kroger (NYSE:KR) announced its quarterly earnings results on Thursday. The company reported $1.58 earnings per share for the quarter, missing the consensus estimate of $1.59 by ($0.01), FiscalAI reports. Kroger had a net margin of 0.69% and a return on equity of 41.08%. The company had revenue of $46.12 billion during the quarter, compared to analysts’ expectations of $45.59 billion. During the same quarter last year, the firm posted $1.49 earnings per share. Kroger’s revenue for the quarter was up 2.2% compared to the same quarter last year. Kroger updated its FY 2026 guidance to 5.100-5.30 EPS.

Here are the key takeaways from Kroger’s conference call:

• Kroger reported Q1 identical sales excluding fuel up 1%, helped by strong performance in e-commerce, fresh and Our Brands, and said loyal households have now grown for 17 consecutive quarters.
• The company said its e-commerce business, including media, turned profitable ahead of schedule, with digital sales up 19% and improved fulfillment economics from a shift toward store-based delivery and pickup.
• Kroger highlighted early cost-savings momentum, saying COGS savings came in 30% ahead of plan in the quarter and that savings should ramp through the rest of the year to help fund price investments.
• Management said it is taking a careful, surgical approach to pricing, aiming to make Kroger more competitive and easier to understand on value without becoming a price leader, with more detail expected at the October 20 investor update.
• Gross margin was pressured by higher transportation costs and egg deflation, and management also pointed to ongoing consumer pressure, IRA-related pharmacy headwinds, and a tougher inflation backdrop later in the year.

Kroger Stock Down 8.5%

Shares of NYSE KR opened at $56.57 on Friday. Kroger has a 12 month low of $56.32 and a 12 month high of $76.58. The company has a current ratio of 0.80, a quick ratio of 0.42 and a debt-to-equity ratio of 2.66. The firm has a market capitalization of $34.65 billion, a price-to-earnings ratio of 36.97, a PEG ratio of 1.74 and a beta of 0.42. The business has a 50-day moving average of $65.80 and a 200-day moving average of $66.40.

Trending Headlines about Kroger

Here are the key news stories impacting Kroger this week:

• Positive Sentiment: Revenue topped Wall Street estimates at $46.12 billion, and Kroger reaffirmed its full-year guidance, which signals management still sees the business on track. Reuters article
• Positive Sentiment: Adjusted eCommerce sales grew 19% and Kroger Precision Marketing profit rose more than 20%, showing progress in higher-growth digital and advertising segments. PR Newswire article
• Neutral Sentiment: Kroger launched customer-facing promotions such as free ice cream and free meals tied to America’s 250th, which may help traffic and brand goodwill but are unlikely to move the stock materially. Yahoo News article
• Neutral Sentiment: Analysts and media commentary noted that Kroger’s defensive appeal is being questioned, with some still seeing the post-earnings selloff as potentially overdone. Seeking Alpha article
• Negative Sentiment: Higher operating costs, softer comparable sales, and margin pressure from price cuts are the main reasons investors are selling the stock today. Motley Fool article
• Negative Sentiment: Management’s modest FY2026 EPS guidance of $5.10 to $5.30 leaves little room for error and reinforces concerns that earnings growth may stay limited. MarketBeat earnings page

Analysts Set New Price Targets

Several research analysts have commented on KR shares. Royal Bank Of Canada restated an “outperform” rating on shares of Kroger in a research note on Monday, June 1st. Wall Street Zen upgraded Kroger from a “hold” rating to a “buy” rating in a research report on Saturday, April 4th. Erste Group Bank downgraded shares of Kroger from a “buy” rating to a “hold” rating in a report on Monday, April 27th. Weiss Ratings restated a “hold (c)” rating on shares of Kroger in a research report on Friday, March 27th. Finally, UBS Group reaffirmed a “neutral” rating on shares of Kroger in a report on Wednesday, June 10th. Nine equities research analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $74.67.

Hedge Funds Weigh In On Kroger

A number of hedge funds and other institutional investors have recently bought and sold shares of KR. JPL Wealth Management LLC bought a new position in shares of Kroger in the 3rd quarter worth $31,000. Zions Bancorporation National Association UT increased its stake in Kroger by 59.6% in the fourth quarter. Zions Bancorporation National Association UT now owns 509 shares of the company’s stock valued at $32,000 after acquiring an additional 190 shares during the last quarter. Prosperity Bancshares Inc bought a new position in Kroger in the fourth quarter valued at $33,000. Quattro Advisors LLC purchased a new stake in Kroger during the fourth quarter valued at about $39,000. Finally, Rakuten Securities Inc. raised its position in Kroger by 253.9% during the second quarter. Rakuten Securities Inc. now owns 584 shares of the company’s stock valued at $42,000 after purchasing an additional 419 shares in the last quarter. Hedge funds and other institutional investors own 80.93% of the company’s stock.

About Kroger

The Kroger Co (NYSE: KR) is one of the largest supermarket operators in the United States, offering a wide range of retail grocery and related services. Founded in Cincinnati in 1883 by Bernard Kroger, the company operates a portfolio of supermarket and multi-department store banners and provides customers with fresh foods, packaged groceries, deli and bakery items, meat and seafood, produce, and prepared foods. Kroger’s stores commonly include pharmacy services and fuel centers, positioning the company as a broad-based neighborhood retail destination for everyday needs.

In addition to traditional in-store retailing, Kroger manufactures and distributes a variety of private-label brands and operates its own food production and supply-chain facilities.