EarningsQ2 2026 Earnings Report
MX:KR Q2 2026 EPS Results
Actual EPS$18.69
Consensus EPS$18.09
Beat/MissBeat by +$0.60
One Year Ago EPS$17.83
MX:KR Q2 2026 Revenue Results
Actual Revenue$593.56B
Expected Revenue$593.94B
Beat/MissMissed by -$380.91M
YoY Revenue Growth+2.01%
Earnings Announcement Details
QuarterQ2 2026
Date09/11/2026
TimeBefore Open
Conference CallFriday, September 11, 2026
MX:KR Upcoming Earnings
Kroger Company's next earnings date is estimated for November 26, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
MX:KR Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was broadly positive on execution and profitability, with strong e-commerce, retail media, private-label brands, cost savings, gross-margin performance, market-share progress, cash flow and balance-sheet flexibility. However, sales growth was weak, full-year identical sales guidance was reduced, and the company faces ongoing pressure from cyclospora, pharmacy changes, consumer budget constraints, shrink, transportation costs and softer fuel margins. The highlights significantly outweigh the lowlights because Kroger maintained its full-year profit and EPS outlook while reporting progress across multiple strategic initiatives.Company Guidance
Profit Delivery Despite Softer Sales
Adjusted FIFO operating profit was $1.1 billion, and adjusted earnings per diluted share was $1.09, representing 5% growth versus last year. Management said the company delivered the profit it committed to despite a softer top line.
Improved Gross Margin Performance
FIFO gross margin rate, excluding rent, depreciation and amortization and fuel, increased 13 basis points versus the second quarter of last year. The improvement was driven primarily by e-commerce profitability, retail media, pharmacy mix, tariff refunds and sourcing initiatives.
Cost Savings Ahead of Plan
Sourcing and savings came in ahead of plan during the quarter, with broad-based contributions across cost of goods sold and goods not for resale initiatives. Management said savings are expected to build through the balance of the year across sourcing, procurement, simplification and productivity.
E-Commerce Growth and Profitability
Adjusted e-commerce sales grew 20% during the quarter, and Kroger delivered its second consecutive quarter of profitable e-commerce growth. New customers also increased 20% versus last year, led by strong engagement during online deal days.
Retail Media Momentum
Retail media grew 24% during the quarter, its best performance since 2021, with media up 88 basis points. Management attributed the performance to stronger collaboration between merchandising and media teams, expanded advertising inventory and optimization efforts that improved visibility and conversion for brand partners.
Private-Label Brand Growth
Private Selection sales increased more than 14% during the quarter, driven by strong customer response to new products, including ready-to-heat and ready-to-eat meals. Across the portfolio, Kroger brand sales grew faster than national brands, and brand penetration increased approximately 50 basis points.
Expansion of Natural and Organic Assortment
Natural and organic engagement remained strong, and Kroger added more than 600 new natural and organic items during the quarter. Natural foods, meat and seafood, and bakery delivered strong results, while natural and prepared meals grew well ahead of total sales.
Improved Store Execution
On-shelf availability reached an all-time high, and pickup perfect orders were the best ever. Management also cited market-share gains in deli and bakery in both dollars and units.
Market Share Performance
Kroger widened its gap versus Circana's rest of market during the first half of the year and maintained the first-quarter gap in the second quarter. Management said category-by-category market share performance versus the Circana rest of market was strong.
Customer Value Progress
Management said Kroger's value proposition improved relative to competitors in the second quarter. The multiyear customer value plan is progressing, with opportunities identified to strengthen value positioning, simplify promotions and make value easier for customers to recognize.
New Health and Delivery Offering
In August, Kroger launched a grocery and prescription delivery offering with Instacart, allowing customers to combine groceries and eligible prescriptions into a single order across nearly all banners.
Faster Fulfillment Initiatives
Kroger renewed its focus on in-store fulfillment and fast delivery and reported encouraging growth in delivery orders completed in less than an hour. Management said demand continues to shift toward faster fulfillment and the network is being positioned to meet it.
Fuel Business Outperformed the Market
Kroger's gallons increased during the quarter and outperformed the broader market by approximately 25 basis points. Fuel redemptions increased nearly 6% versus last year, and higher margins per gallon drove modestly higher fuel profitability, described as low single digit profit growth year over year.
Associate Retention Improvement
Retail store retention continued to improve and exceeded Kroger's goal. Management said competitive wages and benefits are producing positive results and that greater associate stability supports productivity and reduces hiring and training needs.
Capital Investment and Store Projects
Kroger completed 12 major-store projects during the quarter, including new stores and major remodels. Management said future store growth will target both high-growth geographies and existing markets where Kroger can provide more customers with access to its stores.
Strong Balance-Sheet Flexibility and Share Repurchases
At the end of the second quarter, net debt to adjusted EBITDA was 1.91, below the target ratio range of 2.3 to 2.5. Kroger generated solid adjusted free cash flow and repurchased approximately $1.2 billion of shares through the first half of the year under its existing $2 billion authorization.
New Leadership Additions
Kroger welcomed Emily DeMartino as chief people officer, Nate Faust as executive vice president and chief e-commerce officer, and Mary Ibbotson as executive vice president and chief store operations officer. Management said the new leaders bring experience in frontline organizations, e-commerce, merchandising, supply chain, technology and retail operations.
Loyalty Program Flexibility
Kroger expanded its loyalty program and rebranded FuelPoints as SimplyPoints. Customers can use points for savings at the pump or apply them directly to grocery bills in stores or online.
Giant Eagle Acquisition Remains on Track
Kroger continues to expect its planned acquisition of Giant Eagle to close in 2027 and remains focused on the regulatory review process. Management said the combination is intended to serve more customers and communities with value, quality and convenience.
Limited Tariff Exposure
Management said Kroger's tariff exposure is more limited than many competitors because the majority of what it sells is food sourced domestically. The company received tariff refunds during the quarter, although they were not a meaningful driver of results and were fully reinvested in value.
Positive Full-Year Profit Outlook Maintained
Despite lowering identical sales without fuel guidance, Kroger maintained full-year adjusted FIFO operating profit guidance of $5 billion to $5.2 billion and adjusted net earnings per diluted share guidance of $5.10 to $5.30. Management expects consistent year-over-year earnings growth in the third and fourth quarters.
MX:KR Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed