The Kroger Co. Reports Q2 2026 Results & Updates Full-Year Guidance

Overview of Filing

On September 11, 2026, The Kroger Co. (NYSE: KR) filed a Form 8-K under Item 2.02 (Results of Operations and Financial Condition) and Item 9.01 (Financial Statements and Exhibits), announcing financial results for its second quarter ended August 15, 2026, and updating full-year fiscal 2026 guidance.

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Key Q2 2026 Financial Highlights

• Total Sales: $34.62 billion compared to $33.94 billion in Q2 2025 (+0.1% ex-fuel, divestitures, and fulfillment center exits).
• Identical Sales (ex-fuel): Grew +0.2% (includes a -138 bps impact from the Inflation Reduction Act).
• Operating Profit: $971 million compared to $863 million in Q2 2025.
• Adjusted FIFO Operating Profit: $1,076 million compared to $1,091 million in Q2 2025.
• Diluted EPS: $1.05 compared to $0.91 in Q2 2025.
• Adjusted Diluted EPS: $1.09 compared to $1.04 in Q2 2025 (+5% YoY).
• Digital Growth: Adjusted eCommerce sales increased +20%; Kroger Precision Marketing profit rose +24%.

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Updated Full-Year 2026 Guidance

• Identical Sales (without fuel): Lowered to 0.2% – 0.8% (down from previous range of 1.0% – 2.0%), reflecting an approximate 140 bps headwind from the Inflation Reduction Act.
• Adjusted FIFO Operating Profit: Reaffirmed at $5.0 – $5.2 billion.
• Adjusted EPS: Reaffirmed at $5.10 – $5.30.
• Capital Expenditures: Reaffirmed at $3.8 – $4.0 billion.
• Free Cash Flow: Reaffirmed at $2.7 – $2.9 billion.

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Capital Allocation & Shareholder Returns

• Dividend: Raised quarterly dividend by 11% earlier in the quarter, marking 20 consecutive years of dividend increases.
• Share Repurchases: Repurchased $1.0 billion of common stock during Q2 ($1.2 billion year-to-date). Approximately $800 million remains under the $2.0 billion board authorization, targeted for completion by fiscal year-end 2026.
• Leverage: Net total debt to adjusted EBITDA stood at 1.91x (versus target range of 2.30x to 2.50x).