Kroger shares rise 2.7% after profit beat despite lower 2026 sales outlook

  • Kroger reported second-quarter adjusted EPS above expectations despite revenue slightly missing forecasts.
  • $1.09 adjusted EPS beat estimates, while revenue reached $34.62 billion.
  • Kroger maintained full-year adjusted EPS guidance of $5.10 to $5.30.

Kroger shares gained 2.7% to $58.49 after the supermarket operator reported second-quarter adjusted earnings above expectations. Revenue rose 2% year over year to $34.62 billion, slightly below forecasts, while adjusted diluted earnings per share increased to $1.09 from $1.04. Kroger maintained full-year adjusted EPS guidance of $5.10 to $5.30 in the latest update, revising the previously cited range of $5.00 to $5.20. Identical-store sales excluding fuel grew 0.2%, compared with 3.4% a year earlier, as management cited a parasitic outbreak and pharmacy reimbursement adjustments linked to the Inflation Reduction Act. Customer visits increased and adjusted e-commerce sales jumped 20%, while gross margin was broadly unchanged at 22.4%. Kroger previously lowered its fiscal 2026 identical-sales forecast to 0.2% to 0.8% growth from 1% to 2%. The company reaffirmed plans to raise its quarterly dividend, currently $0.39 per share, and deploy the remaining $800 million of a $2 billion buyback authorization this year.

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