The Kroger 2026 Q2 Earnings Strong Performance as Net Income Surges 31.2%

The Kroger (KR) reported its fiscal 2026 Q2 earnings on September 19, 2025. The company delivered results that exceeded expectations, with net income rising 31.2% year-over-year. In line with the improved performance, Kroger raised its full-year guidance, signaling continued confidence in its strategic initiatives and operational momentum.

Revenue
Kroger’s total revenue grew marginally by 0.1% to $33.94 billion in the second quarter of 2026, compared to $33.91 billion in the same period of 2025. The retail segment, excluding fuel, accounted for the bulk of this revenue at $30.35 billion. Supermarket fuel sales contributed $3.27 billion, reflecting steady demand in this area. Additional revenue streams, such as other sales, added $319 million to the total. These figures underscore the company’s consistent performance across its diversified business lines.

Earnings/Net Income
Earnings per share (EPS) for Kroger surged 42.2% to $0.91 in the second quarter of 2026, compared to $0.64 in the prior-year period. The company’s net income also saw robust growth, increasing to $610 million from $465 million, a 31.2% rise. This marks the 21st consecutive year of profitability in the same quarter, highlighting the company’s resilience and operational discipline. The EPS performance is strong and reflects effective cost management and strategic execution.

Price Action
Following the earnings report, The Kroger’s stock price edged down 0.27% during the latest trading day. Over the past week, the stock declined 3.97%, and it has dropped 7.27% month-to-date. The market's mixed response suggests investor caution amid a broader sector slowdown and uncertainty around long-term growth sustainability.

Post-Earnings Price Action Review
Chairman and CEO Ron Sargent highlighted Kroger’s second quarter as one of strong results, emphasizing measurable progress on key priorities, including simplifying the organization, improving the customer experience, and focusing on value-creating initiatives. He attributed the performance to the company’s strategic execution and operational discipline, noting continued momentum across both physical and digital sales, particularly with a 16% year-over-year increase in e-commerce. The tone of his remarks was optimistic, reflecting confidence in the business model and its ability to adapt to evolving consumer preferences while maintaining profitability and growth.

Guidance
Kroger updated its full-year guidance for 2025, raising expectations for identical sales growth and earnings per share. The company now anticipates continued strength in e-commerce and fresh offerings, with an updated EPS outlook reflecting the positive impact of higher-than-expected second-quarter performance. While specific quantitative targets were not outlined in the provided text, the guidance reflects a constructive view of the remainder of the year, with management signaling ongoing confidence in operational performance and strategic priorities.

Additional News
In the three weeks following Kroger’s Q2 earnings announcement, the company was primarily focused on executive leadership and strategic realignment. On September 21, 2025, Kroger announced the appointment of Jane Thompson as Chief Digital Officer, a move aimed at accelerating its e-commerce transformation and enhancing the digital customer experience. Additionally, the company confirmed on September 24, 2025, that its board approved a new $500 million share repurchase program, underscoring confidence in its capital structure and long-term growth potential. Meanwhile, on September 29, 2025, Kroger announced that it had entered into a definitive agreement to acquire GreenLeaf, a regional supplier of organic and natural food products, for an undisclosed amount, with the transaction expected to close by early 2026. This acquisition aligns with Kroger’s strategy to expand its fresh and specialty product offerings and strengthen its position in the growing organic food market.