The Kroger 2026 Q3 Earnings Revenue Up 0.7% Despite 313.1% Net Loss Deterioration

Kroger (KR) reported mixed Q3 2026 results, with revenue rising 0.7% to $33.86 billion but swinging to a net loss of $1.31 billion. The company raised adjusted EPS guidance to $4.75–$4.80 and narrowed identical sales growth to 2.8%–3%.

Revenue

The Kroger’s total revenue increased by 0.7% year-over-year to $33.86 billion, reflecting modest growth in core operations. Excluding fuel and pharmacy sales, identical sales rose 2.6%, indicating steady customer demand and operational execution.

Earnings/Net Income

Kroger swung to a loss of $2.02 per share in Q3 2026 from a profit of $0.85 per share in the prior-year period, marking a 337.6% negative change. The net loss of $1.31 billion represented a 313.1% deterioration from $617 million net income in 2025 Q3. Despite the loss, the company has sustained profitability for over two decades, underscoring operational resilience.

Price Action

The stock price of The Kroger has edged down 0.65% during the latest trading day, dropped 5.80% during the most recent full trading week, and edged down 0.47% month-to-date.

Post-Earnings Price Action Review

The strategy of buying Kroger (KR) shares after a revenue raise quarter-over-quarter on the financial report release date and holding for 30 days delivered moderate returns but underperformed the market. The strategy's CAGR was 10.93%, trailing the benchmark by 35.09%. With a maximum drawdown of 0.00% and a Sharpe ratio of 0.50, the strategy had low risk but conservative returns, making it suitable for investors seeking stability.

CEO Commentary

Ronald Sargent, Chairman of the Board & Interim CEO, emphasized progress on strategic priorities like store operations and customer experience, while acknowledging macroeconomic challenges. The company plans to open 14 new stores in Q4 2025 and optimize e-commerce through partnerships and AI.

Guidance

Kroger narrowed identical sales growth guidance to 2.8%–3% for 2026, raised adjusted EPS guidance to $4.75–$4.80, and confirmed $400 million in e-commerce profitability improvements. The company also expects to complete $2.5 billion in share repurchases by year-end.

Additional News

Kroger announced a $2.6 billion impairment charge linked to its automated fulfillment network, signaling a strategic pivot to a hybrid e-commerce model. The company also confirmed its interim CEO, Ronald Sargent, while continuing its search for a permanent leader. Additionally, Kroger plans to accelerate new store openings by 30% in 2026, emphasizing expansion into new markets.