Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Kroger's FY2025 revenue held nearly flat at $147.6B (+0.4% YoY), but operating income collapsed 50.9% to $1.9B and net income fell 61.9% to $1.0B, largely reflecting significant charges tied to the terminated Albertsons merger and elevated costs, even as operating cash flow surged 26.2% to $7.3B.
Revenue
$147.64B
+0.35% YoY
EPS (Diluted)
$1.54
-58.04% YoY
Operating Income
$1.89B
-50.90% YoY
Source: SEC XBRL
Kroger (KR) reported FY2025 revenue of $147.64B, up 0.4% year over year. Operating margin was 1.3%, down 1.3 points from 2.6% a year earlier. Operating cash flow was $7.31B, up 26.2% year over year.
Last 4 quarters: 2 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 1.58 | 1.64 | Miss -3.6% |
| Mar 2026 | 1.28 | 1.24 | Beat +3.5% |
| Dec 2025 | 1.05 | 1.06 | Miss -1.3% |
| Sep 2025 | 1.04 | 1.02 | Beat +1.6% |
Compiled by AI from this SEC filing
Total revenue grew just 0.4% YoY from $147.1B to $147.6B, indicating that Kroger maintained its top-line scale but faced limited organic growth momentum in a competitive grocery environment.
Source: 10-K Income Statement (XBRL Financial Data)
Operating income dropped 50.9% to $1.89B and net income fell 61.9% to $1.02B, suggesting substantial one-time charges or cost pressures — likely including costs related to the failed Albertsons merger — significantly weighed on profitability in FY2025.
Source: 10-K Income Statement (XBRL Financial Data)
Despite compressed earnings, operating cash flow surged 26.2% to $7.31B, reflecting strong working capital management and the non-cash nature of many charges that reduced reported net income.
Source: 10-K Cash Flow Statement (XBRL Financial Data)
Kroger repurchased $2.70B in shares during FY2025, though this was down 35.1% from $4.16B in the prior year, and financing cash outflows ballooned to -$4.02B, reflecting debt service and buyback activity.
Source: 10-K Cash Flow Statement (XBRL Financial Data)
Stockholders' equity declined 28.5% to $5.93B while total liabilities remained elevated at $44.0B, pushing the debt-to-equity ratio to 7.43x — a notably high level that reflects the company's leveraged balance sheet and reduced retained earnings.
Source: 10-K Balance Sheet (XBRL Financial Data)
Compiled by AI from this SEC filing · 2 high, 3 medium, 0 low
With a debt-to-equity ratio of 7.43x and long-term debt of $15.9B against stockholders' equity of only $5.93B, Kroger carries substantial financial leverage. Any deterioration in operating performance or rising interest rates could strain debt servicing capacity and limit financial flexibility.
Source: 10-K Balance Sheet (XBRL Financial Data)
Kroger's current ratio stands at 0.80, meaning current liabilities of $18.1B exceed current assets of $14.5B. This negative working capital position is common in grocery retail but leaves limited buffer against unexpected short-term cash demands, particularly given the 13.6% YoY rise in current liabilities.
Source: 10-K Balance Sheet (XBRL Financial Data)
The dramatic 50.9% drop in operating income and 61.9% drop in net income relative to nearly flat revenue strongly implies significant one-time charges, potentially including merger termination fees, legal settlements, or restructuring costs tied to the Albertsons deal. Recurrence or new charges of this nature could further erode earnings.
Source: 10-K Income Statement (XBRL Financial Data)
Cash and equivalents fell 15.8% to $3.33B and total assets declined 5.1% to $49.95B, suggesting asset disposals or reduced investment activity. A shrinking asset base could limit Kroger's ability to invest in store upgrades, technology, and competitive pricing initiatives.
Source: 10-K Balance Sheet (XBRL Financial Data)
Basic EPS fell 58.1% from $3.70 to $1.55, a steep decline that may pressure the stock and increase scrutiny from institutional investors. Sustained EPS weakness could affect Kroger's cost of capital and its ability to execute share repurchase programs at favorable valuations.
Source: 10-K Income Statement (XBRL Financial Data)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 147.64 $B | 147.12 $B | +0.35% |
Operating Income $B | 1.89 $B | 3.85 $B | -50.90% |
Net Income $B | 1.02 $B | 2.67 $B | -61.88% |
EPS (Basic) $ | 1.55 $ | 3.70 $ | -58.11% |
EPS (Diluted) $ | 1.54 $ | 3.67 $ | -58.04% |
Answers draw on this SEC filing and the data on this page
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