The Kroger Co. (KR) reported adjusted earnings of $1.09 per share for the second quarter of fiscal 2026, a 4.8% increase year-over-year, surpassing the Zacks Consensus Estimate of $1.05. Total sales reached $34.621 billion, up 2% from the prior year but falling short of the anticipated $34.688 billion. Identical sales (excluding fuel) rose 0.2%, while adjusted e-commerce sales surged by 20%.
Despite positive e-commerce growth, Kroger lowered its fiscal 2026 identical sales guidance to a range of 0.2-0.8% from an earlier forecast of 1-2%, citing an unfavorable impact from the Inflation Reduction Act. The company maintained its adjusted FIFO operating profit guidance between $5 billion and $5.2 billion, with adjusted earnings projected at $5.10-$5.30 per share. Net cash provided by operating activities totaled $3.085 billion in the first half of the year, down from $3.688 billion a year prior.
Kroger’s pharmacy and fuel segments showed strength, with pharmacy generating significant operating profit growth due to a shift towards generic drugs. Fuel sales outperformed the industry by approximately 520 basis points, contributing to overall profitability in a volatile energy market.
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