Kroger (NYSE:KR) Issues Earnings Results

Kroger (NYSE:KR) posted its earnings results on Thursday. The company reported $1.58 EPS for the quarter, missing analysts’ consensus estimates of $1.59 by ($0.01), FiscalAI reports. Kroger had a net margin of 0.71% and a return on equity of 44.33%. The business had revenue of $46.12 billion for the quarter, compared to analysts’ expectations of $45.59 billion. During the same period last year, the business posted $1.49 EPS. The company’s revenue for the quarter was up 2.2% on a year-over-year basis. Kroger updated its FY 2026 guidance to 5.100-5.30 EPS.

Here are the key takeaways from Kroger’s conference call:

• Kroger reported Q1 identical sales excluding fuel up 1%, helped by strong performance in e-commerce, fresh and Our Brands, and said loyal households have now grown for 17 consecutive quarters.
• The company said its e-commerce business, including media, turned profitable ahead of schedule, with digital sales up 19% and improved fulfillment economics from a shift toward store-based delivery and pickup.
• Kroger highlighted early cost-savings momentum, saying COGS savings came in 30% ahead of plan in the quarter and that savings should ramp through the rest of the year to help fund price investments.
• Management said it is taking a careful, surgical approach to pricing, aiming to make Kroger more competitive and easier to understand on value without becoming a price leader, with more detail expected at the October 20 investor update.
• Gross margin was pressured by higher transportation costs and egg deflation, and management also pointed to ongoing consumer pressure, IRA-related pharmacy headwinds, and a tougher inflation backdrop later in the year.

Kroger Price Performance

Shares of KR stock opened at $56.57 on Friday. Kroger has a fifty-two week low of $56.32 and a fifty-two week high of $76.58. The firm has a market capitalization of $34.65 billion, a price-to-earnings ratio of 33.27, a PEG ratio of 1.59 and a beta of 0.42. The company has a debt-to-equity ratio of 2.43, a quick ratio of 0.42 and a current ratio of 0.79. The stock’s 50-day simple moving average is $65.51 and its 200-day simple moving average is $66.33.

Hedge Funds Weigh In On Kroger

Hedge funds and other institutional investors have recently modified their holdings of the stock. JPL Wealth Management LLC acquired a new stake in Kroger in the 3rd quarter worth approximately $31,000. Zions Bancorporation National Association UT increased its stake in Kroger by 59.6% during the 4th quarter. Zions Bancorporation National Association UT now owns 509 shares of the company’s stock valued at $32,000 after purchasing an additional 190 shares in the last quarter. Prosperity Bancshares Inc acquired a new position in Kroger during the 4th quarter valued at approximately $33,000. Quattro Advisors LLC purchased a new position in shares of Kroger in the fourth quarter worth $39,000. Finally, Rakuten Securities Inc. raised its holdings in shares of Kroger by 253.9% in the second quarter. Rakuten Securities Inc. now owns 584 shares of the company’s stock worth $42,000 after buying an additional 419 shares during the last quarter. 80.93% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Kroger

Here are the key news stories impacting Kroger this week:

• Positive Sentiment: Revenue came in above expectations at $46.12 billion, and Kroger said identical sales excluding fuel rose 1.0%, showing demand for groceries and essentials remains resilient. Kroger Q1 Earnings Miss Despite Revenue Beat & E-commerce Growth
• Positive Sentiment: Digital growth was a bright spot: e-commerce sales increased 19%, and Kroger’s media segment turned profitable, which supports the company’s longer-term growth strategy. The Kroger Co (KR) Q1 2026 Earnings Call Highlights: Strong eCommerce Growth and Profitability …
• Neutral Sentiment: Management reaffirmed full-year guidance, which may calm some investors, but it was not enough to offset concerns about near-term profitability. Kroger Reports First Quarter 2026 Results
• Neutral Sentiment: Analyst commentary is split, with some viewing the selloff as a value opportunity while others say margin pressure and cautious consumers make the stock less attractive in the near term. Why Kroger’s Pullback Could Be a Gift for Patient Investors
• Negative Sentiment: Adjusted EPS of $1.58 missed estimates by a penny, and investors reacted strongly to signs that pricing investments and higher operating costs are pressuring margins. Kroger Q1 Earnings Miss Despite Revenue Beat & E-commerce Growth
• Negative Sentiment: Several reports noted that consumers are under pressure and that Kroger’s cost growth is outrunning sales growth, which is the main reason shares sold off after earnings. Kroger beats quarterly sales estimates

Wall Street Analysts Forecast Growth

Several research firms have commented on KR. Morgan Stanley set a $73.00 price target on shares of Kroger and gave the company an “equal weight” rating in a research report on Thursday, March 5th. UBS Group reiterated a “neutral” rating on shares of Kroger in a research note on Wednesday, June 10th. BMO Capital Markets reissued a “market perform” rating and set a $70.00 target price on shares of Kroger in a research report on Thursday, March 5th. Telsey Advisory Group raised their target price on shares of Kroger from $80.00 to $82.00 and gave the company an “outperform” rating in a research note on Thursday, March 5th. Finally, Roth Mkm reaffirmed a “buy” rating and issued a $78.00 price target (up from $75.00) on shares of Kroger in a report on Friday, March 6th. Ten analysts have rated the stock with a Buy rating and eight have given a Hold rating to the stock. According to MarketBeat, Kroger presently has an average rating of “Moderate Buy” and a consensus price target of $75.12.

About Kroger

The Kroger Co (NYSE: KR) is one of the largest supermarket operators in the United States, offering a wide range of retail grocery and related services. Founded in Cincinnati in 1883 by Bernard Kroger, the company operates a portfolio of supermarket and multi-department store banners and provides customers with fresh foods, packaged groceries, deli and bakery items, meat and seafood, produce, and prepared foods. Kroger’s stores commonly include pharmacy services and fuel centers, positioning the company as a broad-based neighborhood retail destination for everyday needs.

In addition to traditional in-store retailing, Kroger manufactures and distributes a variety of private-label brands and operates its own food production and supply-chain facilities.