Kroger Q4 EPS Beats at $1.28, Free Cash Flow Nears $3.4B
Kroger Co. reported Q4 adjusted EPS of $1.28, exceeding the $1.20 forecast, while sales were $34.7B versus $35B expected and same-store sales rose 2.4%. Full-year free cash flow nearly doubled to $3.4B, operating profit surged 36.6%, and 2026 EPS guidance is $5.10-$5.30.
1. Q4 Earnings and Sales
Kroger delivered adjusted earnings of $1.28 per share for Q4, beating the $1.20 consensus, though revenue came in at $34.7 billion versus the $35 billion expectation. Excluding fuel, same-store sales increased 2.4%, reflecting continued customer growth.
2. Profitability and Cash Flow
Operating profit jumped 36.6% year-over-year, and GAAP EPS rose 50% to $1.35. Free cash flow for the full year reached $3.4 billion, up from $1.8 billion, boosting the free cash flow margin to 4.8%.
3. Full-Year Results and 2026 Guidance
Full-year sales edged up 0.3% to $147.6 billion while EPS declined to $1.54. Management set 2026 guidance at $5.10 to $5.30 per share and maintains a 2% dividend yield, signaling confidence in cash generation.