Kroger (KR) Q4 2026 earnings summary

Executive summary

• Achieved positive market share growth in the final period, with Q4 identical sales without fuel up 2.4% and full-year up 2.9%; adjusted EPS grew 12% in Q4 to $1.28 and 9% for the year to $4.85, at the high end of expectations.

• eCommerce sales exceeded $16B for the year, with Q4 adjusted eCommerce sales up 20%; strategic review targets $400M in eCommerce operating profit improvement in 2026.

• Alternative profit businesses generated over $1.5B in operating profit, with double-digit growth expected in 2026.

• Leadership changes included a new CEO, division presidents, and a dedicated AI leader.

• Completed $7.5B in share repurchases and authorized an additional $2B for 2026.

Financial highlights

• Q4 sales were $34.7B, up from $34.3B year-over-year; full-year sales reached $147.6B, up from $147.1B.

• Q4 gross margin improved to 23.1% from 22.7% year-over-year; full-year gross margin was 22.9%, up from 22.3%.

• Adjusted FIFO operating profit for Q4 was $1,206M; full-year adjusted FIFO operating profit was $4.9B.

• Adjusted free cash flow for 2025 was $3.87B, up from $2.50B in 2024.

• Dividend per share for 2025 was $1.37, up from $1.25 in 2024.

Outlook and guidance

• Fiscal 2026 guidance: identical sales without fuel growth of 1.0%–2.0%, adjusted FIFO operating profit of $5.0–$5.2B, adjusted EPS of $5.10–$5.30, and adjusted free cash flow of $2.7–$2.9B.

• Guidance includes a 130 basis point headwind from the Inflation Reduction Act.

• Capital expenditures projected at $3.8–$4.0B and an adjusted tax rate of 23%.