Albertsons Q3 Preview: EPS Seen at $0.68 with Revenue of $19.17B
Albertsons Companies will release Q3 results on Jan. 7, 2026 before the market opens with analysts expecting EPS of $0.68 versus $0.71 year-ago and revenue of $19.17B, up from $18.77B. Ahead of the call, Evercore cut its target to $20 while Tigress lifted to $29, highlighting divergent views.
1. Q3 Earnings and Revenue Projections
Analysts surveyed by Benzinga Pro anticipate that Albertsons Companies will report third-quarter adjusted earnings of $0.68 per share, down from $0.71 in the year-ago period, reflecting a year-over-year decline of approximately 4.2%. Revenue is projected at $19.17 billion, up 2.1% from $18.77 billion a year earlier. The mix of higher grocery pricing and increased promotional spending is expected to drive top-line growth, while continued margin pressure from supply chain costs may weigh on profitability.
2. Analyst Rating Revisions Ahead of Earnings Call
In the six weeks leading up to the January 7 earnings release, five of Benzinga’s most accurate analysts maintained their ratings on Albertsons. Evercore ISI’s Michael Montani kept an In-Line rating while reducing his target, reflecting concerns over margin compression. Tigress Financial’s Ivan Feinseth stayed bullish with a Buy rating, noting resilient same-store sales. UBS’s Mark Carden and Wells Fargo’s Edward Kelly both upheld their favorable outlooks but trimmed expectations on cost trends. RBC Capital’s Steven Shemesh continued to view the stock as an Outperform, pointing to Albertsons’ scale advantages in private-label merchandising. These analysts’ historical accuracy rates range from 53% to 74%.
3. Strong Q2 Performance and Raised Full-Year Profit Guidance
In its October quarter, Albertsons reported adjusted earnings per share above consensus and revenue growth of 3.7%, driven by stronger-than-expected pharmacy services and digital sales gains. Management subsequently raised its full-year fiscal 2025 earnings forecast, citing better inventory turns and a 120-basis-point improvement in gross margin year-to-date. Investors will be watching whether the company can sustain these operational efficiencies into the third quarter.
4. Key Metrics to Watch on the Earnings Call
Beyond the headline figures, investors will scrutinize same-store sales growth, which analysts forecast at 2.5% year-over-year, and free cash flow, which is expected to remain near $1.5 billion for the quarter. Management commentary on promotional cadence, private-label penetration now at roughly 23% of total sales, and progress on its logistics network rationalization program will be critical indicators of whether Albertsons can navigate inflationary headwinds and deliver on its recently improved guidance.