Kroger (NYSE:KR) Posts Earnings Results, Beats Estimates By $0.04 EPS

Kroger (NYSE:KR) issued its quarterly earnings data on Friday. The company reported $1.09 EPS for the quarter, beating analysts’ consensus estimates of $1.05 by $0.04, reports. Kroger had a return on equity of 44.33% and a net margin of 0.71%.The business had revenue of $34.62 billion for the quarter, compared to analyst estimates of $34.64 billion. During the same quarter in the prior year, the firm posted $1.04 EPS. The firm’s revenue for the quarter was up 2.0% on a year-over-year basis. Kroger updated its FY 2026 guidance to 5.100-5.300 EPS.

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

• Sales outlook was reduced: Kroger lowered full-year identical sales growth without fuel guidance to 0.2%-0.8% from 1%-2%, citing consumer pressure, lingering Cyclospora effects, pharmacy pricing headwinds, and tougher comparisons later in the year.
• Despite soft sales, Kroger maintained adjusted FIFO operating profit guidance of $5.0-$5.2 billion and adjusted EPS guidance of $5.10-$5.30, supported by cost savings, margin management, pharmacy mix, and expected earnings growth in the second half.
• E-commerce and retail media continued to accelerate. Adjusted e-commerce sales rose 20% with a second consecutive quarter of profitable growth, while retail media increased 24% and monetization improved 88 basis points.
• Kroger reported continued momentum in Our Brands, particularly Private Selection and Simple Truth; Our Brand sales grew faster than national brands, penetration increased approximately 50 basis points, and Private Selection sales rose more than 14%.
• Management emphasized a multi-year customer value plan combining lower prices and simpler promotions with sourcing, procurement, and productivity savings. The company also resumed share repurchases, buying back approximately $1.2 billion of stock in the first half, while continuing to expect the Giant Eagle acquisition to close in 2027 subject to regulatory review.

Kroger Stock Up 2.7%

KR stock opened at $58.50 on Friday. Kroger has a twelve month low of $54.15 and a twelve month high of $76.58. The company has a quick ratio of 0.39, a current ratio of 0.79 and a debt-to-equity ratio of 2.43. The company has a market cap of $35.84 billion, a PE ratio of 31.80, a price-to-earnings-growth ratio of 1.64 and a beta of 0.41. The business’s 50-day simple moving average is $57.78 and its 200 day simple moving average is $63.66.

Kroger Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, September 1st. Investors of record on Saturday, August 15th were given a dividend of $0.39 per share. This represents a $1.56 dividend on an annualized basis and a yield of 2.7%. This is a boost from Kroger’s previous quarterly dividend of $0.35. The ex-dividend date of this dividend was Friday, August 14th. Kroger’s dividend payout ratio (DPR) is 91.76%.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on KR shares. HC Wainwright reaffirmed a “buy” rating on shares of Kroger in a research report on Thursday, July 2nd. JPMorgan Chase & Co. dropped their price target on shares of Kroger from $72.00 to $70.00 and set a “neutral” rating on the stock in a research report on Thursday, June 11th. Morgan Stanley reduced their price objective on shares of Kroger from $73.00 to $67.00 and set an “equal weight” rating for the company in a research note on Monday, June 22nd. Telsey Advisory Group set a $78.00 price objective on shares of Kroger and gave the stock an “outperform” rating in a report on Monday, June 22nd. Finally, Barclays set a $61.00 target price on shares of Kroger and gave the company an “equal weight” rating in a research note on Monday, June 22nd. Ten investment analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $71.31.

Institutional Trading of Kroger

A number of hedge funds have recently modified their holdings of the company. JPL Wealth Management LLC bought a new stake in shares of Kroger during the third quarter valued at approximately $31,000. Zions Bancorporation National Association UT lifted its position in Kroger by 59.6% in the fourth quarter. Zions Bancorporation National Association UT now owns 509 shares of the company’s stock worth $32,000 after purchasing an additional 190 shares during the period. Prosperity Bancshares Inc bought a new position in Kroger in the fourth quarter worth $33,000. Quattro Advisors LLC acquired a new stake in Kroger during the fourth quarter worth $39,000. Finally, Rakuten Securities Inc. boosted its stake in Kroger by 253.9% during the second quarter. Rakuten Securities Inc. now owns 584 shares of the company’s stock worth $42,000 after buying an additional 419 shares in the last quarter. Institutional investors own 80.93% of the company’s stock.

More Kroger News

Here are the key news stories impacting Kroger this week:

• Positive Sentiment: Kroger reported second-quarter adjusted EPS of $1.09, above the approximately $1.05 analyst consensus and up from $1.04 a year earlier. Operating profit increased to $971 million, while adjusted eCommerce sales grew 20% and Kroger Precision Marketing profit rose 24%. Kroger Reports Second Quarter 2026 Results and Updates Guidance for 2026
• Positive Sentiment: Management reaffirmed fiscal 2026 adjusted EPS guidance of $5.10–$5.30, signaling confidence that cost savings, pharmacy and fuel performance, eCommerce and margin management can offset sluggish sales. Kroger also repurchased $1 billion of stock during the quarter. Kroger gains as profit outlook holds despite softer sales guidance
• Positive Sentiment: Unusually heavy call-option activity indicated that some traders were positioning for additional upside following the earnings release.
• Neutral Sentiment: Revenue rose 2% year over year to $34.62 billion but was slightly below estimates. Identical sales excluding fuel increased only 0.2%, reflecting cautious consumer spending and the impact of the Inflation Reduction Act on pharmacy revenue. Kroger Reports Second Quarter 2026 Results and Updates Guidance for 2026
• Negative Sentiment: Kroger cut its fiscal-year identical-sales outlook excluding fuel to 0.2%–0.8%, down from 1%–2%. Executives cited inflation, intense grocery competition and strained household budgets, including elevated gasoline costs and reduced government food assistance. Kroger Cuts Sales View Due to Macro Challenges
• Negative Sentiment: A cyclospora outbreak reduced fresh-produce shopping during the quarter, while reports that Boar’s Head meats are disappearing from some stores could create additional deli-sales and customer-retention concerns. Cyclospora outbreak hammers Kroger sales as shoppers avoided produce

Kroger Company Profile

The Kroger Co (NYSE: KR) is one of the largest grocery retailers in the United States. Founded in Cincinnati in 1883 by Bernard Kroger, the company operates supermarkets, multi-department stores, pharmacies, convenience stores and fuel centers across the country.

Kroger sells a broad range of fresh foods, packaged groceries, household products, health and beauty items, prepared foods and general merchandise. Its private-label offerings include Simple Truth, Private Selection and Kroger brands.