Albertsons 2026 Q1 Earnings Mixed Results as Net Income Declines 1.8%

Albertsons Companies (ACI) reported its fiscal 2026 Q1 earnings on July 15, 2025. The company posted a mixed performance for the quarter, missing expectations on net income while showing growth in revenue. Albertsons revised its guidance, raising identical sales growth expectations to a range of 2% to 2.75%, up from an earlier estimate. This adjustment reflects confidence in its strategic initiatives, particularly its Customers for Life strategy. Despite a decline in net income, the company maintained its forecast for adjusted EBITDA and capital expenditures, signaling a commitment to long-term growth.

Revenue
The total revenue of Albertsons increased by 2.5% to $24.88 billion in 2026 Q1, up from $24.27 billion in 2025 Q1.

Earnings/Net Income
Albertsons's EPS declined 2.4% to $0.41 in 2026 Q1 from $0.42 in 2025 Q1. Meanwhile, the company's net income declined to $236.40 million in 2026 Q1, down 1.8% from $240.70 million reported in 2025 Q1. The EPS performance reflects a slight decrease from the previous year.

Price Action
The stock price of Albertsons has dropped 3.14% during the latest trading day, has dropped 5.19% during the most recent full trading week, and has edged down 1.22% month-to-date.

Post-Earnings Price Action Review
The strategy of buying Albertsons (ACI) shares after a quarterly revenue drop on the financial report release date and holding for 30 days has consistently delivered strong returns over the past three years. This approach achieved a 37.75% return, significantly outperforming the benchmark, which remained at -100.00%. The excess return was 137.75%, showcasing substantial gains relative to the market. The strategy's risk-adjusted performance was robust, supported by a CAGR of 6.66% and a maximum drawdown of 0.00%. Additionally, the strategy demonstrated a Sharpe ratio of 0.22 and reasonable volatility of 30.81%, indicating a balanced risk-reward profile. Overall, this investment approach highlights Albertsons' potential for favorable returns amid revenue fluctuations.

CEO Commentary
Susan D. Morris, CEO & Director, highlighted that "our Customers for Life strategy is working," as evidenced by a strong performance with identical sales growth of 2.8% and a 25% increase in digital sales. She emphasized the importance of their strategic priorities, including investments in customer value propositions and digital platforms, which are "driving customer growth and engagement." Morris expressed optimism about future growth, stating, "I am more confident in our strategy with each day," and reassured stakeholders of the company’s commitment to enhancing customer experiences while navigating challenges through productivity improvements and market positioning.

Guidance
Albertsons expects identical sales growth in the range of 2% to 2.75%, an increase from previous guidance. Adjusted EBITDA is projected to remain between $3.8 billion and $3.9 billion. The company anticipates adjusted EPS to fall between $2.03 and $2.16, including $0.03 related to a 53rd week. Capital expenditures are expected to range from $1.7 billion to $1.9 billion, reflecting continued investments in growth initiatives and a focus on improving customer value propositions.

Additional News
Albertsons Companies Inc. recently announced a $2 billion share repurchase program following the termination of its merger with Kroger. This move signals a strategic shift towards returning value to shareholders amid ongoing legal issues with Kroger concerning a $600 million termination fee. Moreover, Albertsons has expanded its loyalty program, increasing membership by 14% to 47 million. The company is also investing in technology advancements, including AI and digital platforms, to enhance operational efficiency and customer engagement. These developments underscore Albertsons' focus on standalone growth strategies while addressing financial and legal challenges.