Analysts cut Kroger targets after mixed Q1 results
Kroger reported mixed first-quarter results, with revenue rising to $46.12 billion but adjusted earnings missing estimates at $1.58 per share. The company affirmed its fiscal 2026 outlook for identical sales and adjusted earnings. Following the announcement, analysts at Morgan Stanley, Barclays, and Guggenheim lowered their price targets to $67, $61, and $71, respectively.

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The Kroger Co. reported mixed first-quarter results, prompting analysts at Barclays, Morgan Stanley, and Guggenheim to lower their price targets on the grocery retailer. Kroger reported adjusted earnings of $1.58 per share, missing the consensus estimate of $1.59, while revenue rose to $46.12 billion, topping analysts’ expectations of $45.47 billion. The company affirmed its fiscal 2026 outlook for identical sales, excluding fuel, to increase 1% to 2%.
Kroger expects adjusted earnings of $5.10 to $5.30 per share, compared with the Wall Street consensus estimate of $5.27. The company maintained its forecast for FIFO operating profit of $5.0 billion to $5.2 billion, free cash flow of $2.7 billion to $2.9 billion, and capital expenditures of $3.8 billion to $4.0 billion.
CEO Greg Foran stated, "I joined Kroger because I believe it represents the best opportunity in retail. We serve millions of families every day, in our stores and online. We have the right stores in the right places, unmatched customer insights, and the ability to win. Our focus is clear: to become America’s best grocer. We will measure ourselves against that every day."
Following the earnings announcement, analysts revised their ratings. Morgan Stanley analyst Simeon Gutman maintained the stock with an Equal-Weight rating and lowered the price target from $73 to $67. Barclays analyst Seth Sigman maintained the stock with an Equal-Weight rating and cut the price target from $68 to $61. Guggenheim analyst John Heinbockel maintained Kroger with a Buy rating and lowered the price target from $78 to $71.
| Firm | Analyst | Rating | New Price Target | Previous Price Target |
|---|---|---|---|---|
| Morgan Stanley | Simeon Gutman | Equal-Weight | $67 | $73 |
| Barclays | Seth Sigman | Equal-Weight | $61 | $68 |
| Guggenheim | John Heinbockel | Buy | $71 | $78 |
Kroger shares rose 0.7% to trade at $56.99 on Monday.
What specific factors led to the consensus earnings miss despite revenue beating expectations?
How will the lowered price targets from major analysts impact investor sentiment in the short term?
What strategic initiatives is Kroger pursuing to achieve its 1-2% identical sales growth by fiscal 2026?





























