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Kroger Stock Falls 2.4% After Q2 Earnings Miss

Webull2 min read5 sources

Why is Kroger stock down today?

Kroger (KR) stock fell 2.4% to $57.20 on Friday after the grocer posted Q2 comparable-store sales of only 1.2%, missing Wall Street's 1.8% target, as tariff-driven food inflation weighed on shopper spending.

Key numbers

Adjusted EPS (Q2 FY2026)$0.92vs. $1.05 consensus; miss of $0.13
Comparable store sales (Q2)+1.2%vs. +1.8% expected
Revenue (Q2 FY2026)$33.9Bflat YoY; vs. ~$34.6B consensus
Net income (Q2 FY2026)$609M+32% YoY
FY2026 adj. EPS guidance$5.10–$5.30unchanged; requires strong H2 ramp
KR stock (Sep 11, 2026)$57.20-2.4% on the day; -5% YTD; 52-wk range $54.15–$76.58

What happened

Kroger (KR) stock fell 2.4% to $57.20 on Friday after the grocer posted Q2 comparable-store sales of only 1.2%, missing Wall Street's 1.8% target, as tariff-driven food inflation weighed on shopper spending. The grocery chain reported adjusted EPS of $0.92, below the $1.05 analyst consensus — the first quarterly EPS shortfall in three quarters. Revenue was $33.9 billion, flat year-over-year and roughly in line with estimates; net income rose 32% to $609 million as supply-chain savings helped offset weak sales. CEO Greg Foran maintained full-year EPS guidance of $5.10–$5.30 but the slowing store traffic makes that target harder to hit.

Why it matters

Kroger is America's largest stand-alone supermarket chain, and weak comparable sales signal that shoppers — especially lower-income households — are cutting back or trading down to cheaper rivals. The miss arrives as tariffs on imported food push grocery prices higher, squeezing both consumer wallets and grocer margins — a double bind that makes recovery harder. For CEO Greg Foran, the stumble chips away at confidence in his turnaround thesis just as he is still assembling his leadership team.

Who this affects

Marketbearish
Low impact
Grocery stocks face mild selling pressure on the miss.
Companybearish
Medium impact
Kroger's shares and full-year earnings target face new doubt.
Competitorsneutral
Low impact
Walmart and Costco gain ground as Kroger stumbles.
Industrybearish
Medium impact
Tariff-driven food inflation pressuring margins across the grocery sector.

Kroger vs Walmart, Target, Costco

KrogerKR$35B-2.4%-5%+1.2%11.3x
WalmartWMT——+18%+4.6%~47x
TargetTGT——+32%~+3%14.8x
CostcoCOST——+18%—~50x

As of 2026-09-11

How we got here

  1. Kroger Q4 FY2025 beats EPS by $0.08; FY2026 guidance issued.

  2. Q1 FY2026: adj. EPS $1.58; identical sales slow to 1.0%; stock falls 12%.

  3. Q2 FY2026 fiscal quarter ends as tariff costs build in final weeks.

  4. Q2 results: EPS $0.92 misses $1.05 consensus; comp sales +1.2% vs 1.8%.

What to watch

  • Whether FY2026 adj. EPS guidance of $5.10–$5.30 holds or gets cut.Q3 2026
  • CEO Greg Foran's concrete turnaround plan details at next earnings call.2026-12-10
  • Any tariff relief on food imports that would ease grocery margin pressure.Q4 2026

Educational content only. Not investment advice.

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