The Kroger Co. (NYSE: KR) reported results for its second quarter ended August 15, 2026, and updated its financial outlook for the full year. The company announced adjusted earnings per diluted share of $1.09 for the quarter, representing a 5% increase compared to the same period in the prior year.
Key financial metrics for the second quarter included total company sales of $34.6 billion, a 2.1% increase year-over-year. Identical sales without fuel increased by 0.2% for the quarter, compared to a 3.4% increase in the prior year. Operating profit was reported at $971 million, while adjusted FIFO operating profit reached $1.076 billion.
Kroger highlighted growth in its digital channels, noting that adjusted eCommerce sales grew by 20% and Kroger Precision Marketing profit increased by 24%.
In terms of capital allocation, the company repurchased $1.0 billion in shares during the quarter. Year-to-date share repurchases totaled $1.2 billion under a $2 billion board authorization announced in December 2025. As of the end of the second quarter, approximately $800 million remained of this authorization, with the company expecting to complete the remaining repurchases by the end of fiscal 2026.
Regarding the full-year 2026 outlook, Kroger reaffirmed its guidance for adjusted FIFO operating profit, EPS, free cash flow, and capital expenditure, which remain in the ranges of $5.0 to $5.2 billion, $5.10 to $5.30, $2.7 to $2.9 billion, and $3.8 to $4.0 billion, respectively.
However, the company lowered its identical sales without fuel guidance for the full year. The updated range is 0.2% to 0.8%, down from the previous range of 1.0% to 2.0%. Kroger stated that the reduction is primarily due to macroeconomic conditions and the first half of the year's performance. The company also noted that the new sales guidance includes an unfavorable impact of approximately 140 basis points from the Inflation Reduction Act.
Kroger reaffirmed its commitment to maintaining its current investment grade debt rating and expects to continue paying its quarterly dividend, which was increased by 11% earlier this quarter, marking the 20th consecutive year of dividend increases.
