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 delivered solid Q1 FY2026 results with revenue rising 2.2% to $46.1B and EPS growing 13.2% to $1.46, though cash balances fell sharply and the current ratio dipped below 1.0, signaling tighter near-term liquidity.
Revenue
$46.12B
+2.22% YoY
EPS (Diluted)
$1.46
+13.18% YoY
Operating Income
$1.41B
+6.43% YoY
Source: SEC XBRL
Kroger (KR) reported Q1 FY2026 revenue of $46.12B, up 2.2% year over year. Operating margin was 3.1%, up 0.2 points from 2.9% a year earlier. Operating cash flow was $1.77B, down 17.4% year over year. KR's fiscal Q1 FY2026 corresponds to calendar Q2 2026.
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 increased 2.2% year-over-year to $46.1B in Q1 FY2026, compared to $45.1B in the prior-year period, reflecting steady demand across Kroger's grocery and fuel segments.
Source: 10-Q Income Statement Data
Operating income grew 6.4% to $1.41B, with operating margin improving modestly to 3.05% from 2.93%, suggesting Kroger achieved better cost discipline or favorable product mix relative to the prior year.
Source: 10-Q Income Statement Data
Net income rose 4.3% to $903M while diluted EPS surged 13.2% to $1.46 (vs. $1.29), with the outsized EPS gain likely reflecting share count reduction from ongoing buyback activity.
Source: 10-Q Income Statement & Cash Flow Data
Cash and equivalents fell 39.4% year-over-year to $2.87B from $4.74B, while financing cash outflows widened dramatically to -$980M from -$331M, suggesting elevated debt repayment, dividends, or buyback activity.
Source: 10-Q Balance Sheet & Cash Flow Data
Stockholders' equity dropped 27.4% to $6.47B from $8.91B, driving the debt-to-equity ratio to a high 6.77x, which reflects the impact of share repurchases and potentially the unwinding of merger-related balance sheet items.
Source: 10-Q Balance Sheet Data
Compiled by AI from this SEC filing · 1 high, 3 medium, 1 low
Kroger's current ratio stands at 0.79x, meaning current liabilities of $17.97B exceed current assets of $14.21B. This below-1.0 reading indicates the company may need to rely on operating cash flows or credit facilities to meet short-term obligations. While common in grocery retail, the ratio has deteriorated from the prior year.
Source: 10-Q Balance Sheet Data
With a debt-to-equity ratio of 6.77x and long-term debt of $15.38B, Kroger carries significant financial leverage. Rising interest rates could increase refinancing costs, and any revenue shortfall could pressure debt service coverage. Stockholders' equity has declined 27.4% year-over-year, further amplifying leverage metrics.
Source: 10-Q Balance Sheet Data
Operating cash flow fell 17.4% to $1.77B from $2.15B in the prior-year quarter, reducing the company's ability to self-fund capital expenditures and debt repayment. Investing outflows also widened to -$1.26B, resulting in free cash flow of approximately $519M, a meaningful compression.
Source: 10-Q Cash Flow Data
Kroger's net margin of 1.96% reflects the inherently low-margin nature of grocery retail, leaving limited room to absorb cost shocks such as food price inflation, wage increases, or supply chain disruptions without a material impact on profitability.
Source: 10-Q Income Statement Data
Kroger repurchased $213M in shares during Q1 FY2026, up 17.7% year-over-year, contributing to the sharp decline in both cash balances and stockholders' equity. Continued aggressive buybacks while carrying high debt could constrain financial flexibility in a downturn.
Source: 10-Q Cash Flow Data
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 46.12 $B | 45.12 $B | +2.22% |
Operating Income $B | 1.41 $B | 1.32 $B | +6.43% |
Net Income $M | 903.00 $M | 866.00 $M | +4.27% |
EPS (Basic) $ | 1.46 $ | 1.30 $ | +12.31% |
EPS (Diluted) $ | 1.46 $ | 1.29 $ | +13.18% |
Answers draw on this SEC filing and the data on this page
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