TLDR
- Kroger posted Q1 net profit of $903 million, or $1.46 per diluted share, up from $866 million a year ago.
- Revenue came in at $46.12 billion, up ~2% and ahead of the $45.59 billion analyst estimate.
- Adjusted EPS of $1.58 missed the $1.59 consensus by a penny.
- E-commerce sales jumped 19%; Kroger Precision Marketing profit grew more than 20%.
- The stock dropped roughly 7% on the day despite the revenue beat.
Kroger posted first-quarter revenue of $46.12 billion on Thursday, beating analyst estimates of $45.59 billion, but the stock fell around 7% as a razor-thin earnings miss and margin pressure weighed on investor sentiment.
Net profit came in at $903 million, or $1.46 per diluted share, up from $866 million, or $1.30 per share, in the same quarter last year.
On an adjusted basis, Kroger earned $1.58 per share — just one cent below the $1.59 consensus estimate. That small miss was enough to put the stock under pressure.
KROGER $KR EARNINGS ARE OUT!
🔴 EPS: $1.58 | Est. $1.59
🟢 REV: $46.12B | Est. $45.53B
IMPLIED MOVE TODAY: ±3.89%!! pic.twitter.com/yZHzz7y2og— Schaeffer's Investment Research (@schaeffers) June 18, 2026
Identical sales, which strip out fuel, rose 1% year over year. That’s a modest number, but it fits within the company’s own guidance range.
Gross margin narrowed to 22.7% from 23% in the prior-year period. Kroger blamed a heavier mix of lower-margin fuel revenue, higher transportation costs, and falling egg prices for the squeeze.
Those headwinds were only partially offset by a stronger pharmacy product mix, better e-commerce unit economics, and improved procurement terms.
E-Commerce and Marketing Provide a Bright Spot
Adjusted e-commerce sales grew 19% in the quarter, a number Kroger was happy to highlight. Kroger Precision Marketing — its retail media business — saw profit grow more than 20%.
These are two areas where Kroger has been investing, and the results suggest that investment is paying off.
Operating profit still rose to $1.407 billion from $1.322 billion a year ago, helped by lower depreciation and amortization charges that softened the impact of rising overhead costs and higher wages.
CEO Greg Foran, who took the helm earlier this year, kept his tone measured. “We are pleased with our first quarter results, but we know there is more work to do,” he said.
Full-Year Guidance Left Unchanged
Kroger held its full-year 2026 outlook steady. It still expects identical-sales growth of 1% to 2% excluding fuel, adjusted EPS between $5.10 and $5.30, and free cash flow of $2.7 billion to $2.9 billion.
That’s a signal management feels comfortable with the trajectory, even as the competitive environment gets tighter.
Price-conscious consumers have pushed Kroger to announce markdowns on thousands of products. The company said it plans to fund those cuts partly through savings from direct-sourcing deals and more efficient use of technology.
Kroger’s gross margin slipping while costs remain elevated is the central tension here. The company is spending to compete on price while also trying to protect the bottom line.
The stock was down about 3% in premarket trading after the report, then extended losses to around 7% during the session.
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