01—Abstract
Summary
Summary of the 10-Q filed September 19, 2025. Cited figures are marked; the original filing is the authoritative source.
The Kroger Co. reported second-quarter 2025 results (quarter ended August 16, 2025) in this Form 10-Q filed September 19, 2025.
Sales were $33.94 billiona for the quarter, essentially flat versus $33.91 billion a year earlier, and $79.06 billion for the first two quarters. Operating profit rose to $863 million from $815 million, and net earnings attributable to The Kroger Co. increased to $609 million, or $0.91 per diluted share, from $466 million, or $0.64. Adjusted net earnings per diluted share were $1.04 for the quarter, versus $0.93 a year earlier, and $2.53 for the first two quarters, versus $2.36.
Identical sales excluding fuel rose 3.4% in the quarter, led by pharmacy, eCommerce and Fresh, and eCommerce sales increased 16%. Cash flow from operations for the first two quarters was $3.69 billionb, up from $3.46 billion. Cash and temporary cash investments were $4.88 billion at August 16, 2025, and total debt including finance leases was roughly $17.96 billion, with long-term debt of $17.13 billion.
The company returned $625 millionc to shareholders through dividends and share repurchases in the first two quarters, and $2.5 billion remained under the December 2024 repurchase program after the pending $1.0 billion of unsettled accelerated share repurchases were reflected. Management highlighted several charges, including $100 million for store closures, a $47 million severance charge tied to a reduction of nearly 1,000 corporate administrative roles, and $121 million of merger-related litigation and settlement charges in the quarter related to the terminated Albertsons merger. The filing notes that the Albertsons litigation is ongoing: Albertsons seeks a $600 million termination fee, which Kroger denies owing.
Kroger also disclosed an ongoing comprehensive review of its eCommerce operations that could have a material effect on its financial statements. Leadership is currently an Interim Chief Executive Officer and Chairman, Ronald L. Sargent, and disclosure controls were concluded to be effective.
02—Key points
Key Highlights
- Second-quarter sales of $33.94 billion were roughly flat versus $33.91 billion a year earlier, while identical sales excluding fuel grew 3.4%.
- Net earnings attributable to The Kroger Co. were $609 million ($0.91 per diluted share) versus $466 million ($0.64) a year earlier; adjusted EPS was $1.04 versus $0.93.
- eCommerce sales rose 16% in the second quarter and 15% in the first two quarters of 2025, led by Delivery solutions.
- Operating cash flow for the first two quarters was $3.69 billion, up from $3.46 billion, and cash and temporary cash investments reached $4.88 billion.
- Total debt including finance leases was about $17.96 billion, with net interest expense rising to $144 million in the quarter from $84 million.
- Kroger returned $625 million to shareholders in the first two quarters through dividends and share repurchases, with $2.5 billion remaining under the December 2024 repurchase program.
- The Albertsons merger termination remains in litigation, with Albertsons seeking a $600 million termination fee that Kroger says it does not owe.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed September 19, 2025Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $33.94B$33.91B | +0.1% |
| Operating Income | $863.00M$815.00M | +5.9% |
| Net Income | $610.00M$465.00M | +31.2% |
| EPS (Basic) | $0.91$0.64 | +42.2% |
| EPS (Diluted) | $0.91$0.64 | +42.2% |
| Shares Outstanding (Basic) | 662.00M723.00M | −8.4% |
| Shares Outstanding (Diluted) | 665.00M727.00M | −8.5% |
05—Questions
Frequently Asked Questions
How did Kroger perform in the second quarter of 2025?
Sales were $33.94 billion, up slightly from $33.91 billion a year earlier. Operating profit increased to $863 million from $815 million, and net earnings attributable to Kroger rose to $609 million, or $0.91 per diluted share, from $466 million, or $0.64.
What drove sales growth excluding fuel?
Identical sales excluding fuel increased 3.4% in the second quarter, driven primarily by pharmacy, eCommerce and Fresh sales and higher spend per item, partially offset by fewer items per basket. Total supermarket fuel sales fell 10.1% due to lower average retail fuel prices and gallons sold.
What charges affected Kroger's results this period?
The second quarter included $121 million of merger-related litigation and settlement charges and a $47 million severance charge tied to reducing the corporate administrative team by nearly 1,000 associates. The first quarter included $100 million for closing about 60 stores.
What is the status of the Albertsons merger dispute?
The merger was enjoined by a court in December 2024 and terminated by Kroger. Albertsons sued in the Delaware Court of Chancery seeking a $600 million termination fee and additional damages. Kroger denies owing the fee, has filed counterclaims, and the filing does not state a resolution.
How is Kroger managing its capital and shareholder returns?
Kroger paid $422 million in dividends and repurchased $203 million of shares in the first two quarters. Cash and temporary cash investments were $4.88 billion, and the company said it remains committed to its investment grade rating and its net total debt to adjusted EBITDA target range of 2.30 to 2.50.
06—Continue