Kroger (NYSE:KR) Issues FY 2026 Earnings Guidance

Kroger (NYSE:KR) updated its FY 2026 earnings guidance on Friday. The company provided earnings per share guidance of 5.100-5.300 for the period, compared to the consensus earnings per share estimate of 5.270. The company issued revenue guidance of -.

Analyst Upgrades and Downgrades

KR has been the topic of a number of research analyst reports. Weiss Ratings downgraded Kroger from a “hold (c+)” rating to a “hold (c)” rating in a report on Thursday, June 18th. Morgan Stanley decreased their target price on Kroger from $73.00 to $67.00 and set an “equal weight” rating for the company in a research report on Monday, June 22nd. Wall Street Zen downgraded shares of Kroger from a “buy” rating to a “hold” rating in a report on Saturday, June 20th. Guggenheim reiterated a “buy” rating and issued a $71.00 price target on shares of Kroger in a research note on Thursday, July 2nd. Finally, Jefferies Financial Group reissued a “buy” rating and set a $80.00 price objective on shares of Kroger in a report on Wednesday, June 3rd. Ten equities research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company. According to data from MarketBeat.com, Kroger presently has an average rating of “Moderate Buy” and a consensus price target of $71.31.

Kroger Stock 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 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 capitalization of $35.84 billion, a P/E ratio of 34.41, a price-to-earnings-growth ratio of 1.59 and a beta of 0.41. The stock’s 50-day moving average price is $57.78 and its 200-day moving average price is $63.66.

Kroger (NYSE:KR) last issued its quarterly earnings results on Friday, September 11th. The company reported $1.09 earnings per share for the quarter, beating the consensus estimate of $1.05 by $0.04. The business had revenue of $34.62 billion for the quarter, compared to the consensus estimate of $34.64 billion. Kroger had a net margin of 0.71% and a return on equity of 44.33%. The company’s revenue for the quarter was up 2.0% on a year-over-year basis. During the same quarter in the previous year, the firm earned $1.04 earnings per share. Kroger has set its FY 2026 guidance at 5.100-5.300 EPS. On average, equities research analysts predict that Kroger will post 5.21 earnings per share for the current year.

Kroger Increases Dividend

The firm 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 is an increase from Kroger’s previous quarterly dividend of $0.35. This represents a $1.56 annualized dividend and a dividend yield of 2.7%. The ex-dividend date was Friday, August 14th. Kroger’s dividend payout ratio (DPR) is 91.76%.

Key Stories Impacting Kroger

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

Hedge funds and other institutional investors have recently modified their holdings of the stock. T. Rowe Price Investment Management Inc. grew its position in shares of Kroger by 1.9% during the fourth quarter. T. Rowe Price Investment Management Inc. now owns 41,684 shares of the company’s stock valued at $2,605,000 after purchasing an additional 764 shares in the last quarter. Invesco Ltd. increased its stake in Kroger by 7.7% in the 4th quarter. Invesco Ltd. now owns 6,816,240 shares of the company’s stock worth $425,879,000 after acquiring an additional 489,058 shares during the last quarter. Corient Private Wealth LLC grew its holdings in shares of Kroger by 11.2% in the fourth quarter. Corient Private Wealth LLC now owns 354,101 shares of the company’s stock valued at $20,293,000 after purchasing an additional 35,711 shares in the last quarter. Alberta Investment Management Corp purchased a new stake in Kroger during the fourth quarter valued at $2,371,000. Finally, Raymond James Financial Inc. lifted its position in Kroger by 2.3% during the fourth quarter. Raymond James Financial Inc. now owns 2,762,472 shares of the company’s stock valued at $172,610,000 after purchasing an additional 61,853 shares during the last quarter. Institutional investors own 80.93% of the company’s stock.

About Kroger

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.