Kroger (NYSE:KR) Announces Quarterly Earnings Results

Kroger (NYSE:KR) announced its quarterly earnings results on Friday. The company reported $1.09 EPS for the quarter, beating analysts’ consensus estimates of $1.05 by $0.04, reports. The firm had revenue of $34.62 billion for the quarter, compared to analyst estimates of $34.64 billion. Kroger had a return on equity of 44.33% and a net margin of 0.71%.The business’s revenue for the quarter was up 2.0% on a year-over-year basis. During the same period last year, the firm posted $1.04 earnings per share. 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 Trading Up 2.7%

NYSE:KR opened at $58.50 on Friday. Kroger has a 52 week low of $54.15 and a 52 week high of $76.58. The firm has a 50-day moving average price of $57.78 and a two-hundred day moving average price of $63.66. The company has a debt-to-equity ratio of 2.43, a quick ratio of 0.39 and a current ratio of 0.79. The firm has a market cap of $35.84 billion, a price-to-earnings ratio of 34.41, a price-to-earnings-growth ratio of 1.59 and a beta of 0.41.

Kroger Increases Dividend

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

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on KR shares. Telsey Advisory Group set a $78.00 price objective on shares of Kroger and gave the company an “outperform” rating in a report on Monday, June 22nd. Weiss Ratings lowered shares of Kroger from a “hold (c+)” rating to a “hold (c)” rating in a report on Thursday, June 18th. HC Wainwright reaffirmed a “buy” rating on shares of Kroger in a research note on Thursday, July 2nd. Wells Fargo & Company set a $58.00 price target on shares of Kroger in a report on Monday, June 22nd. Finally, Jefferies Financial Group restated a “buy” rating and issued a $80.00 target price on shares of Kroger in a research note on Wednesday, June 3rd. Ten analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $71.31.

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

Hedge Funds Weigh In On Kroger

Institutional investors have recently modified their holdings of the business. Worldquant Millennium Advisors LLC raised its holdings in Kroger by 299.6% during the 2nd quarter. Worldquant Millennium Advisors LLC now owns 2,420,495 shares of the company’s stock valued at $173,622,000 after acquiring an additional 1,814,721 shares during the period. Alyeska Investment Group L.P. boosted its holdings in shares of Kroger by 48.6% in the fourth quarter. Alyeska Investment Group L.P. now owns 4,445,479 shares of the company’s stock worth $277,754,000 after acquiring an additional 1,453,966 shares during the period. GQG Partners LLC grew its position in shares of Kroger by 11.3% in the fourth quarter. GQG Partners LLC now owns 13,398,072 shares of the company’s stock valued at $837,113,000 after purchasing an additional 1,360,946 shares in the last quarter. Raymond James Financial Inc. grew its position in shares of Kroger by 95.6% in the second quarter. Raymond James Financial Inc. now owns 2,434,663 shares of the company’s stock valued at $174,638,000 after purchasing an additional 1,190,127 shares in the last quarter. Finally, AQR Capital Management LLC raised its stake in shares of Kroger by 49.3% during the 4th quarter. AQR Capital Management LLC now owns 3,593,860 shares of the company’s stock valued at $224,544,000 after purchasing an additional 1,186,757 shares during the period. 80.93% of the stock is owned by institutional investors.

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.