KR earnings analysis
What we found in KR's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Kroger's Q1 2026 results showed significant revenue growth of 2.2% quarter-over-quarter, reaching $46.12 billion, although diluted EPS was slightly lower than consensus estimates at $1.46. Management highlighted strong performance in eCommerce and pharmacy segments, while noting ongoing cost pressures affecting margin expansion. Forward guidance remains cautious amid economic uncertainties.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Growth
- Total revenue was $46.12 billion, up 2.2% year-over-year from $45.12 billion.
- EPS Performance
- Diluted EPS increased 13.2% to $1.46 from $1.29 in the prior year.
- eCommerce Sales Surge
- eCommerce sales grew 13% year-over-year, driven by strong delivery solutions.
- Operating Profit Increase
- Operating profit rose to $1.41 billion, a 6.4% increase from $1.32 billion last year.
- Decrease in Total Debt
- Total debt decreased by $571 million, totaling $17.03 billion as of May 23, 2026.
- Cash Flow Improvement
- Operating cash flow generated was $1.77 billion, though down from $2.15 billion year-over-year.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Margin Pressures Persist
- Gross margin declined to 22.7% from 23.0% due to increased fuel sales and transportation costs.
- Inflationary Pressures
- Identical sales growth was impacted by the Inflation Reduction Act by approximately 130 basis points.
- Potential Operations Disruptions
- Risks associated with labor negotiations and competitiveness in the retail space contributing to uncertain outlook.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $1.46
- Gross margin
- 22.7%
- Operating margin
- 3.05%
What they said about what is next.
Management expects full-year EPS to remain between $5.10 to $5.30; identical sales growth projected at 1.0% to 2.0%.
The filing reads about the same as the one before it.
What came before.
- 10-K · March 31, 2026
- Kroger Co. reported a 0.4% increase in total sales to $147.64 billion in fiscal 2025, driven by eCommerce and pharmacy sectors, despite ongoing challenges and an impairment of $2.5 billion tied to its fulfillment…
- 10-Q · December 12, 2025
- Kroger's Q3 2025 results reflect continued operational challenges, with total revenue slightly down by 0.7% compared to Q2 and substantial losses attributed to a $2.6 billion impairment charge. While adjusted EPS…
- 10-Q · September 19, 2025
- Kroger reported a mixed performance for Q2 2025, with total revenue of $33.94 billion, a slight increase of 0.1% year-over-year, but lower than expectations. Gross margin improved to 22.5%, up from 22.1% a year prior,…
- 10-Q · June 27, 2025
- Kroger reported solid Q1 results with a slight decline in total sales but improved adjusted EPS and operating profits. The company experienced growth in segments like pharmacy and eCommerce, while facing headwinds in…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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