The Kroger Co. (NYSE: KR) reported second-quarter fiscal 2026 results on Sept. 11, 2026, posting total sales of $34.6 billion, up from $33.9 billion in the same period a year earlier.

Earnings per diluted share were $1.05, compared with $0.91 in the second quarter of 2025. Adjusted EPS, which excludes certain items, rose to $1.09 from $1.04 a year ago. Operating profit for the quarter was $971 million, up from $863 million. Adjusted FIFO operating profit was $1.076 billion, compared with $1.091 billion a year earlier.

Identical sales, excluding fuel, rose 0.2% in the quarter, compared with 3.4% growth in the same period last year. The result included an unfavorable 138 basis point impact from the Inflation Reduction Act. Adjusted eCommerce sales grew 20%, and Kroger Precision Marketing profit grew 24%.

Gross margin was 22.4% of sales, down slightly from 22.5% a year ago. The company said higher shrink, higher transportation costs, and greater value delivered to customers weighed on the rate, partially offset by eCommerce profitability improvements, favorable pharmacy mix, and tariff refunds.

During the quarter, Kroger raised its dividend by 11%, marking what the company said was its 20th consecutive year of dividend increases. The company repurchased $1.0 billion in shares during the quarter and $1.2 billion year-to-date under a $2 billion board authorization announced in December 2025. Approximately $800 million of that authorization remained as of the end of the second quarter.

Kroger lowered its full-year 2026 identical sales without fuel guidance to a range of 0.2% to 0.8%, from a prior range of 1.0% to 2.0%. The updated range includes an approximately 140 basis point headwind from the Inflation Reduction Act. The company reaffirmed its adjusted EPS guidance of $5.10 to $5.30, adjusted FIFO operating profit guidance of $5.0 billion to $5.2 billion, and free cash flow guidance of $2.7 billion to $2.9 billion.

Kroger's net total debt to adjusted EBITDA ratio stood at 1.91, compared with 1.63 a year ago. The company said it plans to host an investor update meeting on Oct. 20, 2026.