Kroger Reports Second Quarter 2026 Results and Updates Guidance for 2026
Kroger's second quarter 2026 sales came in at $34.6 billion, up from $33.9 billion a year ago, with GAAP diluted EPS of $1.05 (vs $0.91) and adjusted EPS of $1.09, up 5%. Identical sales without fuel rose just 0.2% versus 3.4% in the prior-year quarter. Management cut full-year identical sales without fuel guidance to 0.2%-0.8% from 1.0%-2.0%, including an approximately 140 basis point headwind from the Inflation Reduction Act, while reaffirming adjusted FIFO operating profit of $5.0-$5.2 billion, adjusted EPS of $5.10-$5.30, free cash flow of $2.7-$2.9 billion, and cap ex of $3.8-$4.0 billion.
Key figures
- Eps
- 1.05
- Revenue
- 34621000000
- Guidance
- FY26 identical sales without fuel cut to 0.2%-0.8% from 1.0%-2.0% (~140bps IRA headwind); reaffirmed FIFO operating profit $5.0-$5.2 billion, adjusted EPS $5.10-$5.30, free cash flow $2.7-$2.9 billion, cap ex $3.8-$4.0 billion, tax rate 23%
- Revenue Yoy
- total sales $34.6B vs $33.9B (~2%); identical sales without fuel +0.2%; ex-fuel/Vitacost/fulfillment-exit sales +0.1%
- Lifo charge
- 39000000
- Q2 buybacks
- 1000000000
- Adjusted eps
- 1.09
- Gross margin
- 22.4%
- Ytd buybacks
- 1200000000
- Operating profit
- 971000000
- Dividend increase
- 11%
- Identical sales ex fuel
- 0.2%
- Adjusted ecommerce growth
- 20%
- Dividends declared per share
- 0.39
- Fifo gross margin rate change
- increased 13 basis points
- Adjusted fifo operating profit
- 1076000000
- Remaining buyback authorization
- 800000000
- Net total debt to adjusted ebitda
- 1.91
- Kroger precision marketing profit growth
- 24%
AI analysis
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