How did Kroger's sales and profitability perform in the second quarter of 2026?

Sales rose 2.0% to $34.62 billion, mainly because supermarket fuel sales increased 25.6%. Sales without fuel fell 0.5%. Operating profit rose to $971 million from $863 million, and net earnings attributable to The Kroger Co. were $641 million, or $1.05 per diluted share, compared with $0.91 a year earlier.

What drove the change in identical sales?

Identical sales excluding fuel increased 0.2% in the second quarter. Growth was led by eCommerce, natural foods, meat and seafood, bakery and pharmacy sales, partially offset by the Inflation Reduction Act (138 basis points), a shift from brand to generic prescriptions (61 basis points), Cyclospora outbreak effects (about 35 basis points) and egg deflation (30 basis points).

How much cash did Kroger return to shareholders and how is its liquidity position?

In the first two quarters of 2026, Kroger spent $1.27 billion on treasury stock purchases and paid $431 million in dividends. Cash and temporary cash investments were $1.68 billion at August 15, 2026, and the company had no outstanding commercial paper or revolver borrowings. Its $2.75 billion revolving credit facility was undrawn apart from $4 million of letters of credit.

What is the status of the Albertsons litigation and the Giant Eagle acquisition?

Albertsons seeks a $600 million termination fee and additional damages in Delaware Chancery Court, and Kroger denies the claims and has filed counterclaims; trial is scheduled to begin October 19, 2026. Kroger agreed on July 1, 2026 to acquire Giant Eagle for about $1.65 billion, including $1.25 billion in cash and about $400 million of assumed debt, with closing expected in fiscal 2027.

KR 10-Q Quarterly Report Q3 FY2027 — Revenue, Net Income, EPS

01—Abstract

Summary

Summary of the 10-Q filed September 18, 2026. Cited figures are marked; the original filing is the authoritative source.

The Kroger Co. reported second-quarter 2026 sales of $34.62 billion^a, up 2.0% from $33.94 billion a year earlier, with supermarket fuel sales rising 25.6% on a higher average retail fuel price of 25.3%.

Sales without fuel declined 0.5% to $30.52 billion^b, while identical sales excluding fuel rose 0.2%. Operating profit increased to $971 million from $863 million, and net earnings attributable to The Kroger Co. were $641 million, or $1.05 per diluted share, versus $0.91 a year earlier. Excluding Adjusted Items, adjusted net earnings per diluted share were $1.09, up 4.8% from $1.04, helped by a lower share count and a decreased LIFO charge.

For the first two quarters of 2026, net earnings attributable to the company were $1.54 billion^c, or $2.51 per diluted share, compared with $2.20 a year earlier. Operating cash flow fell to $3.09 billion from $3.69 billion, while payments for property and equipment rose to $2.44 billion from $1.97 billion. Cash and temporary cash investments declined to $1.68 billion from $3.33 billion at fiscal year-end, largely reflecting treasury stock purchases of $1.27 billion and debt repayments of $604 million.

Total debt, including finance leases, fell by $569 million^d from fiscal year-end. The filing also discloses a proposed acquisition of Giant Eagle, Inc. valued at approximately $1.65 billion, including $1.25 billion in cash, with closing expected in fiscal 2027. The company remains a defendant in Albertsons' Delaware suit over a $600 million termination fee, with trial scheduled for October 19, 2026, and it continues to carry opioid settlement liabilities of $133 million current and $845 million long-term.

02—Key points

Key Highlights

Second-quarter sales rose to $34.62 billion from $33.94 billion, driven mainly by fuel sales, which increased 25.6% to $4.11 billion.
Identical sales excluding fuel increased 0.2% in the second quarter and 0.6% in the first two quarters of 2026.
Diluted EPS was $1.05 for the second quarter versus $0.91 a year earlier; adjusted diluted EPS was $1.09, up 4.8%.
Operating profit increased to $971 million from $863 million in the second quarter, with the operating margin at 2.80% of sales.
Share repurchases totaled $1.27 billion in the first two quarters of 2026, with $801 million remaining under the December 2025 Repurchase Program as of August 15, 2026.
Cash and temporary cash investments fell to $1.68 billion from $3.33 billion at January 31, 2026, while total debt decreased $569 million.
The proposed Giant Eagle acquisition, valued at about $1.65 billion, is expected to close in fiscal 2027 subject to regulatory clearance.

03—Questions

Frequently Asked Questions

How did Kroger's sales and profitability perform in the second quarter of 2026?
Sales rose 2.0% to $34.62 billion, mainly because supermarket fuel sales increased 25.6%. Sales without fuel fell 0.5%. Operating profit rose to $971 million from $863 million, and net earnings attributable to The Kroger Co. were $641 million, or $1.05 per diluted share, compared with $0.91 a year earlier.
What drove the change in identical sales?
Identical sales excluding fuel increased 0.2% in the second quarter. Growth was led by eCommerce, natural foods, meat and seafood, bakery and pharmacy sales, partially offset by the Inflation Reduction Act (138 basis points), a shift from brand to generic prescriptions (61 basis points), Cyclospora outbreak effects (about 35 basis points) and egg deflation (30 basis points).
How much cash did Kroger return to shareholders and how is its liquidity position?
In the first two quarters of 2026, Kroger spent $1.27 billion on treasury stock purchases and paid $431 million in dividends. Cash and temporary cash investments were $1.68 billion at August 15, 2026, and the company had no outstanding commercial paper or revolver borrowings. Its $2.75 billion revolving credit facility was undrawn apart from $4 million of letters of credit.
What is the status of the Albertsons litigation and the Giant Eagle acquisition?
Albertsons seeks a $600 million termination fee and additional damages in Delaware Chancery Court, and Kroger denies the claims and has filed counterclaims; trial is scheduled to begin October 19, 2026. Kroger agreed on July 1, 2026 to acquire Giant Eagle for about $1.65 billion, including $1.25 billion in cash and about $400 million of assumed debt, with closing expected in fiscal 2027.

04—Continue

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