10-Q · July 28, 2026
Albertsons delivered essentially flat first-quarter revenue of $24.942B, but identical sales declined 0.8% and GAAP diluted EPS fell from $0.41 to $0.17. Gross margin contracted to 26.6% and operating margin to 1.0%,…
Earnings analysis · 10-Q
ACI earnings analysis
Filed October 20, 2026 · Our reading of the company's report
The latest report
Albertsons delivered weak second-quarter results: revenue declined 0.1% to $18,894.7 million, gross margin fell to 26.8%, operating margin fell to 1.0%, and diluted EPS dropped to $0.11 from $0.30. Pharmacy, fuel and…
Read full summary
Albertsons delivered weak second-quarter results: revenue declined 0.1% to $18,894.7 million, gross margin fell to 26.8%, operating margin fell to 1.0%, and diluted EPS dropped to $0.11 from $0.30. Pharmacy, fuel and digital growth partially offset a 0.8% decline in identical sales, but Retail segment EBITDA fell 11.5% to $876.9 million. Cash generation remained positive, although debt and current liabilities increased, and management withdrew its outlook while undertaking a comprehensive turnaround review.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.11
- Segment
- Retail segment sales were $18,694.9 million, down $34.0 million (0.2%) year over year; Retail segment EBITDA was $876.9 million versus $991.4 million, down $114.5 million (11.5%).
- Segment
- Non-perishables revenue was $9,087.8 million versus $9,220.5 million, down $132.7 million (1.4%); Fresh revenue was $5,779.5 million versus $5,946.6 million, down $167.1 million (2.8%).
- Segment
- Pharmacy revenue was $2,667.6 million versus $2,536.8 million, up $130.8 million (5.2%); Fuel revenue was $1,041.0 million versus $911.3 million, up $129.7 million (14.2%).
- Segment
- Other revenue was $318.8 million versus $300.6 million, up $18.2 million (6.1%); total net sales and other revenue was $18,894.7 million versus $18,915.8 million, down 0.1%.
What stood out
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Digital and pharmacy offset weak identical sales
Net sales and other revenue declined 0.1% year over year to $18,894.7 million, while identical sales excluding fuel decreased 0.8%. Digital sales increased 11% and pharmacy sales rose to $2,667.6 million, partially offsetting weaker core sales.
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Margins contracted year over year
Gross margin declined to 26.8% from 27.0%, and operating margin fell to 1.0% from 1.6%. Management attributed gross-margin pressure to higher digital delivery and handling costs, higher shrink and customer-value investments.
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Profitability weakened materially
GAAP diluted EPS fell to $0.11 from $0.30, while adjusted EPS declined to $0.36 from $0.44. Adjusted EBITDA decreased to $784.0 million from $848.4 million, or 4.1% versus 4.5% of sales.
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Cash generation remained positive
Operating cash flow for the first 28 weeks was $1,210.3 million versus $1,282.0 million in the prior-year period. Capital expenditures were $899.6 million, including 38 remodels, seven new stores and digital and technology investments.
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Liquidity supported by ABL capacity
Cash and cash equivalents increased to $282.0 million from $198.6 million at fiscal year-end, while total debt rose to $9,328.2 million from $8,946.6 million. ABL borrowings increased to $825.0 million, with $3,162.4 million of availability.
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Turnaround and operating review underway
Management launched ACI Edge, combining 11 divisions into four regions and centralizing center-store merchandising. The company also announced a broader review intended to improve operating performance and develop a multi-year financial outlook.
What to watch
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Goodwill impairment remains possible
The company identified triggering events including sustained operating underperformance, lower projected operating results and a decline in market capitalization. Although no goodwill impairment was recorded, three reporting units with $327.9 million of goodwill were identified as reasonably possible candidates for future impairment if assumptions change.
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Large opioid settlement exposure
The Opioid Settlement Framework carries estimated payments of up to $655.1 million to states and political subdivisions, $21.7 million to Native American tribes and approximately $97.0 million for attorneys’ fees and costs. The company recorded $288.8 million in current and $485.0 million in long-term liabilities, but the framework remains subject to required terms and participation conditions.
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Higher leverage and near-term obligations
Total current liabilities increased to $8,648.7 million from $7,824.0 million, while current maturities of debt and finance lease obligations rose to $882.2 million from $534.0 million. Interest expense increased to $125.0 million from $105.3 million in the quarter as average borrowings increased.
Management's outlook
No numeric guidance is provided in the 10-Q. Management announced a comprehensive review on October 13, 2026 covering customer strategy, cost structure, operating model, banners, markets, assets, businesses and capital allocation priorities; a multi-year financial outlook is under development. The prior fiscal 2026 outlook was withdrawn pending completion of the review.
Earlier filings 4
10-K · April 27, 2026
Albertsons positions itself as a large, omnichannel U.S. food retailer executing a digital-first strategy built on four platforms (eCommerce, Loyalty, Pharmacy & Health and mobile app) and AI-enabled supply-chain and…
10-Q · January 7, 2026
Albertsons reported Q3 net sales of $19,123.7 million, up $349.2 million versus the prior-year quarter, while diluted net income attributable to Class A common shareholders fell to $293.3 million (diluted EPS $0.55)…
10-K · April 21, 2025
Albertsons positions itself as a large, locally-anchored national grocer with scale advantages (2,270 stores, #1/#2 share in 66% of 122 MSAs) and an omnichannel strategy (Drive Up & Go and delivery in >2,200 stores and…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.