Quarterly ResultJun 26, 2026, 04:08 PM
Kroger Q1 Sales $46.12B, EPS $1.46; Albertsons Merger Terminated
AI Summary
Kroger reported increased sales and earnings for the first quarter of 2026, with sales up 2.22% to $46.12 billion and diluted EPS rising 13.18% to $1.46. The company also finalized significant opioid settlements totaling up to $1.41 billion and formally terminated its merger agreement with Albertsons, leading to ongoing litigation over a $600 million termination fee and other damages. Net cash provided by operating activities decreased year-over-year.
Key Highlights
- Sales increased 2.22% to $46.12 billion in Q1 2026 from $45.12 billion in Q1 2025.
- Net earnings attributable to Kroger rose 4.27% to $903 million from $866 million year-over-year.
- Diluted EPS grew 13.18% to $1.46 in Q1 2026, up from $1.29 in Q1 2025.
- Operating profit increased 6.43% to $1.41 billion in Q1 2026 compared to $1.32 billion in Q1 2025.
- Finalized opioid settlements for up to $1.2 billion to states/subdivisions and $36 million to Native American tribes.
- Terminated the Albertsons merger agreement, facing litigation for a $600 million termination fee.
- Repaid $500 million of senior notes at 3.5% interest using cash on hand in Q1 2026.
- Net cash provided by operating activities decreased to $1.77 billion from $2.15 billion.
Price Impact
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