Kroger Q1 EPS $1.58, Revenue $46.1B Tops Estimates, Guidance Held
KR•Kroger reported fiscal Q1 adjusted EPS of $1.58 matching estimates and revenue of $46.1 billion above the $45.35 billion consensus. The grocer saw identical sales ex-fuel rise 1.0% while gross margin slipped to 22.7% and maintained 2026 EPS guidance of $5.10–$5.30.
1. First Quarter Results
Kroger delivered adjusted earnings per share of $1.58, in line with analyst forecasts, while revenue reached $46.1 billion, surpassing the $45.35 billion consensus and marking a 2.2% year-over-year increase.
2. Comparable Sales and Margin
Identical sales excluding fuel increased 1.0%, down from 3.2% year-over-year, and gross margin narrowed to 22.7% from 23.0%, pressured by higher transportation costs, egg deflation and planned price investments.
3. Digital and Marketing Growth
eCommerce sales expanded 19% year-over-year, and Kroger Precision Marketing profit rose over 20%, reflecting ongoing investment in digital channels and data-driven marketing capabilities.
4. Full-Year Guidance
Kroger maintained its full-year 2026 outlook with adjusted EPS projected at $5.10 to $5.30 (midpoint $5.20), identical sales growth of 1.0%–2.0%, adjusted FIFO operating profit of $5.0–$5.2 billion, and free cash flow of $2.7–$2.9 billion.
