Kroger delivered mixed Q4 2025 results — adjusted EPS of $1.28 beat the consensus estimate of $1.20 by 6.3%, while revenue of $34.73 billion missed the $35.0 billion estimate by ~0.8%. Identical sales excluding fuel grew 2.4%. Shares surged +5.27% to close at $71.57 on March 5, 2026, as strong EPS guidance for FY2026 ($5.10–$5.30) exceeded Street expectations of $5.00.
About The Kroger Co.
The Kroger Co. (NYSE: KR) is the largest supermarket chain by revenue in the United States, founded in 1883 by Barney Kroger as the Great Western Tea Company in Cincinnati, Ohio, where it remains headquartered today. The company was incorporated in 1902 as The Kroger Grocery and Baking Company and has since grown into a retail empire operating over 2,800 store locations across 38 states under a variety of banner names.
Kroger serves over 11 million customers daily through its physical stores and rapidly expanding eCommerce platform, employing more than 400,000 associates across its family of companies. Beyond traditional grocery retail, Kroger operates fuel centers, pharmacies, jewelry stores, and a growing portfolio of alternative profit businesses — including advertising, personal finance, and data analytics — that delivered $1.5 billion in operating profit during fiscal 2025.
As of March 5, 2026, Kroger has a market capitalization of approximately $43 billion, a trailing P/E ratio of roughly 63x (distorted by the $2.5 billion fulfillment network impairment charge), a forward P/E of approximately 13x on adjusted earnings, and a dividend yield of ~2.1% ($1.40 annualized). The company recently appointed Greg Foran as Chief Executive Officer and completed a massive $7.5 billion share repurchase authorization, including a $5 billion accelerated buyback program.
Top Financial Highlights
- Q4 Total Revenue: $34.725 billion, up from $34.308 billion a year ago (+1.2% YoY).
- Q4 Identical Sales (excl. fuel): Increased 2.4%, matching the prior-year quarter’s growth rate.
- Q4 GAAP EPS: $1.35, up 50% from $0.90 in Q4 2024.
- Q4 Adjusted EPS: $1.28, up 12.3% from $1.14 in Q4 2024.
- Q4 Operating Profit: $1,246 million, up 36.6% from $912 million YoY.
- Q4 Adjusted FIFO Operating Profit: $1,206 million, up 2.7% from $1,174 million.
- Q4 Gross Margin: 23.1%, an expansion of 40 basis points from 22.7% a year ago.
- Full-Year Revenue: $147.642 billion vs. $147.123 billion in FY2024..
- Full-Year Adjusted EPS: $4.85, up 8.5% from $4.47 in FY2024.
- Full-Year Adjusted FIFO Operating Profit: $4.905 billion, up from $4.674 billion (+4.9%).
- Full-Year eCommerce Sales: Exceeded $16 billion, with Q4 adjusted eCommerce sales up 20%.
- Full-Year Adjusted Free Cash Flow: $3.868 billion, up significantly from $2.499 billion in FY2024.
- Cash & Temporary Investments: $3.334 billion as of January 31, 2026.
- Net Total Debt to Adjusted EBITDA: 1.76x, improved from 1.79x a year ago (target range: 2.30–2.50x).
- FY2026 Guidance — Adjusted EPS: $5.10–$5.30, implying 5–9% growth over FY2025.
Beat or Miss?
Kroger’s Q4 2025 results presented a split verdict — earnings handily beat expectations while revenue came in slightly below consensus.
| Metric | Reported | Consensus Estimate | Difference |
| Q4 Adjusted EPS | $1.28 | $1.20 | +$0.08 (+6.3% beat) |
| Q4 Revenue | $34.73B | ~$35.0B | -$0.27B (-0.8% miss) |
| Q4 Identical Sales (excl. fuel) | 2.40% | N/A | Matched Q4 2024 growth rate |
| FY2025 Adjusted EPS | $4.85 | $4.47 (prior year) | +8.5% YoY growth |
| FY2026 EPS Guidance (midpoint) | $5.20 | ~$5.00 (Street) | +$0.20 above consensus |
| FY2026 Adj. FIFO Op. Profit Guidance | $5.0–$5.2B | N/A | +2–6% growth vs. FY2025 |
Kroger has now surpassed consensus EPS estimates in four consecutive quarters. The above-consensus FY2026 guidance was the key catalyst for the stock’s rally, as the $5.10–$5.30 EPS range topped the Street’s $5.00 estimate by a meaningful margin, signaling management’s confidence in eCommerce profitability improvements and cost discipline.
What Leadership Is Saying?
“Kroger delivered a strong finish to the year, with improving market share trends and solid sales growth that reflect meaningful progress strengthening the business. We have the right foundation in place, and I’m focused on making it even stronger by delivering more value to customers, improving the customer experience in stores and online, and driving cost savings and productivity to fund our growth.” – CEO Greg Foran — Strategy & Vision
“For 2026, we expect identical sales without fuel growth of 1.0% to 2.0%, adjusted FIFO operating profit of $5.0 to $5.2 billion, and adjusted EPS of $5.10 to $5.30. Our identical sales without fuel guidance includes an approximately 130 basis point headwind from the Inflation Reduction Act. This guidance reflects our ability to invest more aggressively in value for customers while improving gross margins, funded by eCommerce reaching profitability, meaningful procurement efficiencies, and productivity gains across the business.” – CFO David Kennerley — Financial Outlook
Historical Performance
Kroger YoY Comparison
This table compares Kroger’s Q4 2025 (ended January 31, 2026) against Q4 2024 (ended February 1, 2025) across key financial metrics.
| Category | Q4 2025 | Q4 2024 | Change (%) |
| Total Revenue | $34.725B | $34.308B | 1.20% |
| Net Earnings (GAAP) | $861M | $634M | 35.80% |
| GAAP EPS | $1.35 | $0.90 | 50.00% |
| Adjusted EPS | $1.28 | $1.14 | 12.30% |
| Operating Profit | $1,246M | $912M | 36.60% |
| Adj. FIFO Operating Profit | $1,206M | $1,174M | 2.70% |
| Gross Margin | 23.10% | 22.70% | +40 bps |
| OG&A Rate (excl. fuel, adj.) | Increased 21 bps | — | +21 bps |
| LIFO Charge | $11M | $30M | -63.30% |
| Identical Sales (excl. fuel) | 2.40% | 2.40% | Flat |
Full-Year Comparison (FY2025 vs. FY2024)
| Category | FY2025 | FY2024 | Change (%) |
| Total Revenue | $147.642B | $147.123B | 0.40% |
| Net Earnings (GAAP) | $1,016M | $2,665M | -61.9% (impairment impact) |
| Adjusted EPS | $4.85 | $4.47 | 8.50% |
| Adj. FIFO Operating Profit | $4,905M | $4,674M | 4.90% |
| Operating Cash Flow | $7,273M | $5,794M | 25.50% |
| Adjusted Free Cash Flow | $3,868M | $2,499M | 54.80% |
| Gross Margin | 22.90% | 22.30% | +60 bps |
| Identical Sales (excl. fuel) | 2.90% | 1.50% | +140 bps acceleration |
The significant decline in GAAP net earnings was driven by the $2.5 billion fulfillment network impairment charge ($2.91 EPS impact) related to Kroger’s automated fulfillment network (Ocado partnership). On an adjusted basis, profitability improved across the board.
Competitor YoY Comparison
The grocery retail sector showed broadly positive trends in the most recent quarter, with all major players reporting identical/comparable sales growth. Below is a comparison of the latest available quarterly results for Kroger’s primary competitors.
| Category | Kroger (Q4 FY2025, ended Jan ’26) | Walmart (Q4 FY2026, ended Jan ’26) | Albertsons (Q3 FY2025, ended Nov ’25) | Costco (Q4 FY2025, ended Aug ’25) |
| Revenue | $34.73B | $190.7B | $19.12B | $86.16B |
| Revenue YoY Growth | +1.2% | +5.6% | +1.9% | +8.1% |
| EPS (Adjusted) | $1.28 | $0.74 | $0.72 | $5.87 |
| EPS YoY Growth | 12.30% | +12.1% | +4.3%* (adj) | +11.0% |
| Comp/ID Sales (excl. fuel) | 2.40% | +4.6% (US) | +2.4% | +6.4% |
| eCommerce Growth | +20% (adj) | +24% | +21% | +13.5% |
| Gross Margin | 23.10% | N/A | 27.4% | N/A |
Note: Albertsons and Costco quarters do not directly align with Kroger/Walmart fiscal periods. Albertsons’ most recent quarter (Q3 FY2025) ended November 2025; Costco’s most recent quarter (Q4 FY2025) ended August 2025.
Walmart led in both top-line and comp-store sales growth, with its massive eCommerce and advertising businesses driving operating income growth that outpaced sales growth. Costco showed the strongest same-store sales momentum (+6.4%) among the group. Kroger and Albertsons tracked closely to each other in identical sales growth (+2.4%), with both benefiting from strong pharmacy and digital trends.
How the Market Reacted?
Kroger shares experienced notable volatility on March 5, 2026, as markets digested the mixed earnings report. The stock initially dipped -2.19% in pre-market trading to $66.50 as headline revenue missed estimates. However, sentiment reversed sharply during the regular session as investors focused on the earnings beat and above-consensus FY2026 guidance. KR closed the day at $71.57, up $3.58 (+5.27%) — its strongest single-day gain in months. After-hours trading saw minimal movement, with the stock settling at $71.43, down just $0.14 (-0.20%). Year-to-date, Kroger shares have gained approximately 8.8%, significantly outperforming the S&P 500’s 0.4% gain over the same period.
Analyst sentiment heading into the report was cautious — Wells Fargo had recently downgraded KR from Overweight to Equal-Weight with a reduced price target of $68. However, the 24-analyst consensus target price of $73.45 still implies roughly 8% upside from current levels, with Evercore ISI maintaining an Outperform rating at an $81 target. The market’s positive reaction was driven primarily by three factors: the strong EPS beat, the credible path to eCommerce profitability ($400 million improvement expected in 2026), and the continued commitment to shareholder returns via the new $2 billion buyback authorization.
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