Kroger Q1 2026 Results Overview
Kroger Co. (NYSE:KR) posted first‑quarter 2026 results that met analyst expectations for earnings while revenue exceeded forecasts, yet the stock fell more than 6% at the open on Thursday, 18 June 2026.
Adjusted earnings per share were $1.58, exactly matching the consensus estimate of $1.58. Revenue reached $46.1 billion, surpassing the $45.35 billion estimate and representing a 2.2% increase from $45.1 billion in the comparable quarter last year.
Identical sales without fuel grew 1.0% year‑over‑year, a slowdown from the 3.2% growth recorded in the prior year period. Gross margin declined to 22.7% from 23.0% a year earlier, driven primarily by higher transportation costs, egg deflation, and planned price investments, partially offset by a favorable pharmacy mix, improved eCommerce profitability, and sourcing benefits.
Adjusted FIFO operating profit for the quarter was $1.544 billion, up from $1.518 billion in Q1 2025. Adjusted eCommerce sales grew 19% year‑over‑year, and Kroger Precision Marketing profit increased by more than 20%.
The company reaffirmed its full‑year 2026 guidance, projecting adjusted EPS of $5.10‑$5.30 (midpoint $5.20), slightly below the analyst consensus of $5.24. It also maintained guidance for FY2026 identical sales without fuel of 1.0%‑2.0%, adjusted FIFO operating profit of $5.0‑$5.2 billion, free cash flow of $2.7‑$2.9 billion, and capital expenditures of $3.8‑$4.0 billion.
CEO Greg Foran said the results were satisfactory but emphasized the need for continued improvement, noting a culture of never being satisfied and a focus on better serving customers. Vital Knowledge analysts described the release as "modestly underwhelming" given the margin headwinds.