CINCINNATI — The Kroger Co. announced better earnings for the fourth quarter and consistent comparable sales growth. Meanwhile, leadership highlighted investments in value, efficiency, and digital initiatives as the company begins a new phase under CEO Greg Foran.
For the fourth quarter ending Jan. 31, 2026, Kroger reported earnings per share of $1.35, up from $0.90 a year earlier. Adjusted EPS was $1.28, compared to $1.14 in the prior-year period.
Identical sales excluding fuel increased by 2.4%, while total sales grew to $34.7 billion, up from $34.3 billion in the same quarter last year. Operating profit was $1.25 billion, and adjusted FIFO operating profit reached $1.21 billion.
“Kroger delivered a strong finish to the year, with improving market share trends and solid sales growth that reflect meaningful progress strengthening the business,” Foran said.
He mentioned that the company is concentrating on strengthening its value proposition and enhancing execution throughout the business.
“We have the right foundation in place, and I’m focused on making it even stronger by delivering more value to customers, improving the customer experience in stores and online, and driving cost savings and productivity to fund our growth,” Foran said.
Digital sales remained a key driver of growth. Adjusted e-commerce sales grew 20% in the fourth quarter, reaching over $16 billion in e-commerce sales for fiscal 2025.
For the full fiscal year, Kroger reported identical sales without fuel growth of 2.9% and adjusted EPS of $4.85, up from $4.47 in 2024. Total company sales reached $147.6 billion, compared with $147.1 billion the prior year.
Reported operating profit for 2025 was $1.9 billion, reflecting $2.5 billion in impairment and related charges associated with the company’s automated fulfillment network.
According to CFO David Kennerley, the company anticipates sustained growth in 2026 despite economic challenges.
“For 2026, we expect identical sales without fuel growth of 1.0% to 2.0%, adjusted FIFO operating profit of $5.0 to $5.2 billion, and adjusted EPS of $5.10 to $5.30,” Kennerley said.
He observed that Kroger’s outlook incorporates policy-related pressures but also demonstrates confidence in operational improvements.
“Our identical sales without fuel guidance includes an approximately 130 basis point headwind from the Inflation Reduction Act,” Kennerley said. “This guidance reflects our ability to invest more aggressively in value for customers while improving gross margins, funded by e-commerce reaching profitability, meaningful procurement efficiencies, and productivity gains across the business.”
Kroger also finished a strategic review of its digital operations, which the company said is expected to deliver $400 million in e-commerce operating profit growth in 2026 and provide a clearer path to profitability for the segment.
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