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List of All Reports - Check It Out
Earnings analysis included today, at a glance:
Kroger (KR) Q2 FY2027
Copart (CPRT) Q4 FY2026
Adobe (ADBE) Q3 FY2026
Oracle (ORCL) Q1 FY2027
Chewy (CHWY) Q2 FY2027
SailPoint (SAIL) Q2 FY2027
Casey’s General Stores (CASY) Q1 FY2027
ServiceTitan (TTAN) Q2 FY2027
Sunbelt Rentals (SUNB) Q1 FY2027
Disclaimer: This analysis is for informational & educational purposes only and should not be construed as investment advice. Investors should conduct their own due diligence before making investment decisions. Past performance does not guarantee future results.
Kroger (KR) - Q2 FY2026 Earnings
Kroger posted its fiscal second-quarter results on September 11, 2026. Total sales came in at $34.6 billion (when fuel is included), while total revenue reached $79.058 billion.
Identical sales without fuel rose only 0.2%, a meaningful step down from prior guidance of 1% to 2%. Management attributed the softness to a Cyclospora produce recall and to Inflation Reduction Act drug pricing.
Q2 FY2026 headline numbers
- Total revenue: $79.058B (YTD)
- ID sales ex-fuel: +0.2%
- GAAP EPS: $1.05
- Adjusted EPS: $1.09 (+5% YoY)
- Adjusted FIFO operating profit: $1.1B
Reading the soft top line
A 0.2% identical sales print would normally trigger alarm bells, but context matters here.
Strip out the 140 basis point pharmacy drag and the 35 basis point Cyclospora impact, and the underlying run-rate looks closer to 1.5% to 2%, which is roughly in line with the original plan.
The Customer Value Plan is the operating thesis.
Savings captured from sourcing, shrink reduction, and supply chain productivity are being recycled into lower shelf prices, with the goal of winning bigger baskets from existing households rather than chasing new-store growth.
ID sales bridge (management framing)
- Reported ID ex-fuel: +0.2%
- Pharmacy headwind: ~-140 bps
- Cyclospora/produce headwind: ~-35 bps
- Implied underlying run-rate: ~+1.5% to +2%
Where the growth is coming from
Digital was the standout. Adjusted e-commerce sales grew 20%, and it was the second consecutive quarter of profitable e-commerce for Kroger.
Retail media, which is now a real profit contributor, grew 24%, the best quarterly growth since 2021.
Private brands also outperformed. Private Selection sales rose more than 14%, and Our Brands penetration expanded by 50 basis points.
Category commentary
Natural foods, meat, seafood, and bakery all delivered strong volume.
Produce was hit by the Cyclospora outbreak, a 35 basis point drag on IDs.
Pharmacy pulled sales down by roughly 140 basis points due to lower drug pricing.
Fuel gallons outperformed the market by 25 basis points, with fuel redemptions up almost 6%.
Guidance update for FY2026
- ID sales ex-fuel: lowered to 0.2% to 0.8%
- Adjusted FIFO operating profit: maintained at $5.0B to $5.2B
- Adjusted EPS: maintained at $5.10 to $5.30
Balance sheet and capital return
Management reaffirmed the balanced capital allocation approach. Buybacks continue at a pace that’s meaningful for a mature grocer, and the company held profit dollars flat despite a top-line miss.
The settled dispute with C&S Wholesale Grocers over the terminated Albertsons transaction also removed a lingering legal overhang.
Bottom Line for Investors - KR
Why bulls are buying: digital and retail media compounding at 20%+, private brand mix expanding, margins holding despite a soft top line.
Best for: defensive income and quality-at-a-reasonable-price investors seeking staples exposure with an under-appreciated media/e-commerce optionality.
Main risks: further pharmacy reimbursement pressure from the IRA, produce or protein recall recurrence, sluggish organic ID sales limiting operating leverage.
Catalysts: incremental digital margin expansion, capital return cadence, and any strategic update on stores or productivity.
Official sources & data (KR)