Kroger Co. stock gains after Q2 2026 earnings beat while analysts trim price targets
Published on 09/14/2026 at 23:00 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS
Kroger Co. stock (ISIN US5010441013) reacted positively to the company’s second-quarter fiscal 2026 earnings report, with adjusted earnings per share of 1.09 dollars for the quarter ended August 15, 2026 coming in above analyst expectations of 1.05 dollars per share, according to BigGo Finance on September 14, 2026.
Q2 2026 earnings beat but sales growth slows
For the second quarter of fiscal 2026 ended August 15, 2026, Kroger reported total revenue of 34.621 billion dollars, up about 2 percent from approximately 33.94 billion dollars in the prior-year quarter, according to BigGo Finance on September 14, 2026.
Adjusted diluted EPS in Q2 fiscal 2026 reached 1.09 dollars, an increase of 4.8 percent compared with 1.04 dollars a year earlier and above the consensus estimate of 1.06 dollars per share, as noted by BigGo Finance on September 14, 2026.
Net income rose to 641 million dollars for the quarter, up about 5.3 percent from approximately 609 million dollars in the prior-year period, illustrating that profit growth outpaced the company’s top-line expansion in Q2 fiscal 2026, according to BigGo Finance on September 14, 2026.
Guidance cut and digital growth shape the outlook
Same-store sales excluding fuel slowed markedly in Q2 fiscal 2026, rising only 0.2 percent compared with a 3.4 percent increase in the same quarter a year earlier, a deceleration of 3.2 percentage points, as described by BigGo Finance on September 14, 2026.
In response to softer store traffic and a drag from pharmacy changes, Kroger lowered its forecast for fiscal 2026 identical-store sales growth to a range of 0.2 percent to 0.8 percent, down from the previous range of 1 percent to 2 percent, according to BigGo Finance on September 14, 2026.
The company also narrowed its adjusted EPS guidance for fiscal 2026 to a band of 5.00 to 5.20 dollars, compared with a prior range of 5.10 to 5.30 dollars, signaling a slightly more cautious profit outlook but still targeting earnings growth, as reported by BigGo Finance on September 14, 2026.
By contrast, adjusted e-commerce sales in Q2 fiscal 2026 grew about 20 percent year over year, highlighting that Kroger’s digital channels are expanding much faster than its overall sales base, according to BigGo Finance on September 14, 2026.
Analysts trim price targets on Kroger Co. stock
Following the Q2 fiscal 2026 earnings release and guidance update, several analysts lowered their price targets on Kroger Co. stock while generally maintaining positive or neutral ratings, according to Benzinga on September 14, 2026.
Evercore ISI Group analyst Michael Montani maintained an Outperform rating on Kroger Co. stock but lowered his price target to 70 dollars from 75 dollars, as reported by Benzinga on September 14, 2026.
Telsey Advisory Group analyst Joseph Feldman also kept an Outperform rating but trimmed his Kroger Co. stock price target to 75 dollars from 78 dollars, according to Benzinga on September 14, 2026.
Separately, Roth MKM analyst Bill Kirk reduced his target price for Kroger Co. stock to 73 dollars from 78 dollars while reiterating a Buy rating, as noted by Futunn News on September 14, 2026.
Guggenheim also lowered its Kroger Co. stock price target, cutting it to 66 dollars from 71 dollars while maintaining a Buy rating and basing the valuation on roughly 6.2 times projected 2026 EBITDA, according to Investing.com on September 14, 2026.
Risk factors: slower sales and regulatory impacts
One of the key risk factors highlighted around Kroger’s updated outlook is the pressure on same-store sales from both Cyclospora-related issues and changes to drug pricing under the Inflation Reduction Act, which the company said would reduce pharmacy profitability by about 140 basis points, according to BigGo Finance on September 14, 2026.
Kroger’s decision to cut its full-year identical-sales growth guidance from a range of 1 percent to 2 percent down to 0.2 percent to 0.8 percent underscores the challenge of maintaining momentum in a more cautious consumer environment, even as digital and e-commerce sales expand at a faster pace, as highlighted by BigGo Finance on September 14, 2026.
Kroger Co. stock price context
Per recent market data, Kroger Co. stock trades on the New York Stock Exchange in United States dollars, and the shares most recently closed at 58.49 dollars on the last completed trading day before September 14, 2026, after rising 2.7 percent in reaction to the Q2 fiscal 2026 earnings release, as mentioned by BigGo Finance on September 14, 2026.
Kroger Co. stock facts
- Company: Kroger Co.
- ISIN: US5010441013
- Ticker: KR
- Trading venue: NYSE
- Price (as of September 13, 2026): 58.49 USD
- Sector / Industry: Consumer Staples / Food Retail
- Index membership: S&P 500
