Kroger Financials
This page shows Kroger (KR) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 19 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Kroger’s margin-thin operating model keeps sales steady, but cash generation and capital structure explain more than earnings do.
From FY2025 to FY2026, gross margin widened from22.7% to23.3% . But operating cash flow climbed to$7.3B as net income fell to$1.0B , a mismatch that suggests FY2026’s earnings pressure was far more accounting-heavy than cash-destructive.
The balance sheet remains working-capital tight: the current ratio was 0.8x in FY2026 even as operating cash flow reached
Capital returns have materially changed the denominator beneath profitability ratios, with equity roughly halved between FY2023 and FY2026 while share count also fell. With debt-to-equity rising from 0.9x to 2.4x over the same span, a high ROE here should be read as leverage plus buybacks amplifying the metric, not purely better core operations.
Financial Health Signals
Based on FY2026 annual data, averaged across the last 3 years for performance metrics (most-recent year weighted highest). How this score is calculated →
Health score ≠ stock price. This rates the quality of Kroger's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Kroger has an operating margin of 1.3%, meaning the company retains $1 of operating profit per $100 of revenue. This below-average margin results in a low score of 26/100, suggesting thin profitability after operating expenses. This is down from 2.6% the prior year.
Kroger's revenue grew a modest 0.4% year-over-year to $147.6B. This slow but positive growth earns a score of 32/100.
Kroger has a moderate D/E ratio of 2.45. This balance of debt and equity financing earns a leverage score of 52/100.
Kroger's current ratio of 0.80 is below the typical benchmark, resulting in a score of 11/100. This tight liquidity could limit financial flexibility if cash inflows slow.
Kroger has a free cash flow margin of 2.3%, earning a moderate score of 30/100. The company generates positive cash flow after capital investments, but with room for improvement.
Kroger earns a strong 17.1% return on equity (ROE), meaning it generates $17 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 72/100. This is down from 45.0% the prior year.
Kroger scores 4.38, well above the 2.99 safe threshold. This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Kroger passes 6 of 9 financial strength tests. 3 of 4 profitability signals pass, 1 of 3 leverage/liquidity signals pass, both operating efficiency signals pass.
For every $1 of reported earnings, Kroger generates $7.20 in operating cash flow ($7.3B OCF vs $1.0B net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Key Financial Metrics
Earnings & Revenue
Kroger generated $147.6B in revenue in fiscal year 2026. This represents an increase of 0.4% from the prior year.
Kroger's EBITDA was $5.2B in fiscal year 2026, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 26.4% from the prior year.
Kroger reported $1.0B in net income in fiscal year 2026. This represents a decrease of 61.9% from the prior year.
Kroger earned $1.54 per diluted share (EPS) in fiscal year 2026. This represents a decrease of 58.0% from the prior year.
Cash & Balance Sheet
Kroger generated $3.5B in free cash flow in fiscal year 2026, representing cash available after capex. This represents an increase of 94.5% from the prior year.
Kroger held $3.3B in cash against $14.5B in long-term debt as of fiscal year 2026.
Kroger paid $1.37 per share in dividends in fiscal year 2026. This represents an increase of 9.6% from the prior year.
Kroger had 613M shares outstanding in fiscal year 2026. This represents a decrease of 7.3% from the prior year.
Margins & Returns
Kroger's gross margin was 23.3% in fiscal year 2026, indicating the percentage of revenue retained after direct costs. This is up 0.6 percentage points from the prior year.
Kroger's operating margin was 1.3% in fiscal year 2026, reflecting core business profitability. This is down 1.3 percentage points from the prior year.
Kroger's net profit margin was 0.7% in fiscal year 2026, showing the share of revenue converted to profit. This is down 1.1 percentage points from the prior year.
Kroger's ROE was 17.1% in fiscal year 2026, measuring profit generated per dollar of shareholder equity. This is down 27.8 percentage points from the prior year.
Capital Allocation
Kroger spent $2.7B on share buybacks in fiscal year 2026, returning capital to shareholders by reducing shares outstanding. This represents a decrease of 35.1% from the prior year.
Kroger invested $3.9B in capex in fiscal year 2026, funding long-term assets and infrastructure. This represents a decrease of 4.0% from the prior year.
KR Income Statement
| Metric | Q4'26 | Q2'26 | Q1'26 | Q4'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $33.9B-25.0% | $45.1B | N/A | $33.6B-25.7% | $45.3B | N/A | $34.0B+0.3% | $33.9B |
| Cost of Revenue | $26.0B-24.9% | $34.6B | N/A | $25.9B-26.1% | $35.1B | N/A | $26.5B0.0% | $26.5B |
| Gross Profit | $7.9B-25.2% | $10.6B | N/A | $7.7B-24.2% | $10.1B | N/A | $7.5B+1.4% | $7.4B |
| R&D Expenses | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A Expenses | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Operating Income | -$1.5B-216.6% | $1.3B | N/A | $828.0M-36.0% | $1.3B | N/A | $912.0M+290.4% | -$479.0M |
| Interest Expense | N/A | N/A | N/A | $84.0M-31.7% | $123.0M | N/A | $94.0M+1.1% | $93.0M |
| Income Tax | -$475.0M-302.1% | $235.0M | N/A | $187.0M-20.4% | $235.0M | N/A | $204.0M+1233.3% | -$18.0M |
| Net Income | -$1.3B-252.4% | $866.0M+36.6% | $634.0M+2.6% | $618.0M-34.7% | $947.0M+28.1% | $739.0M+14.4% | $646.0M+458.9% | -$180.0M |
| EPS (Diluted) | $-2.02-256.6% | $1.29 | N/A | $0.84-34.9% | $1.29 | N/A | $0.88+452.0% | $-0.25 |
KR Balance Sheet
| Metric | Q4'26 | Q2'26 | Q1'26 | Q4'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $51.4B-3.4% | $53.2B+1.2% | $52.6B-15.7% | $62.4B+21.0% | $51.6B+2.1% | $50.5B-1.0% | $51.0B+1.6% | $50.2B |
| Current Assets | $16.0B+1.5% | $15.8B+3.2% | $15.3B-39.0% | $25.0B+76.7% | $14.2B+9.4% | $12.9B-3.7% | $13.4B+1.8% | $13.2B |
| Cash & Equivalents | $4.0B-16.5% | $4.7B+19.7% | $4.0B-70.4% | $13.4B+369.4% | $2.8B+51.1% | $1.9B+9.2% | $1.7B-34.5% | $2.6B |
| Inventory | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Accounts Receivable | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Goodwill | $2.7B0.0% | $2.7B0.0% | $2.7B0.0% | $2.7B0.0% | $2.7B-8.3% | $2.9B0.0% | $2.9B0.0% | $2.9B |
| Total Liabilities | $44.4B+0.1% | $44.3B0.0% | $44.3B-10.5% | $49.5B+26.4% | $39.2B+0.7% | $38.9B-2.3% | $39.8B+1.3% | $39.3B |
| Current Liabilities | $18.2B+9.6% | $16.6B+4.3% | $15.9B-2.1% | $16.3B-0.6% | $16.4B+2.0% | $16.1B-4.3% | $16.8B-2.0% | $17.1B |
| Long-Term Debt | $14.5B-5.1% | $15.3B-3.0% | $15.8B-23.2% | $20.6B+102.4% | $10.2B0.0% | $10.2B+0.2% | $10.1B0.0% | $10.1B |
| Total Equity | $7.0B-21.0% | $8.9B+7.6% | $8.3B-35.8% | $12.9B+3.9% | $12.4B+6.9% | $11.6B+3.6% | $11.2B+2.8% | $10.9B |
| Retained Earnings | $28.2B-4.0% | $29.4B+2.3% | $28.7B+1.5% | $28.3B+2.2% | $27.7B+2.7% | $26.9B+2.0% | $26.4B+0.2% | $26.4B |
KR Cash Flow Statement
| Metric | Q4'26 | Q2'26 | Q1'26 | Q4'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $1.5B-28.4% | $2.1B+53.1% | $1.4B+25.1% | $1.1B-52.1% | $2.3B+22.0% | $1.9B+281.0% | $504.0M-82.4% | $2.9B |
| Capital Expenditures | $924.0M-11.5% | $1.0B+18.1% | $884.0M+1.0% | $875.0M-32.9% | $1.3B+30.8% | $997.0M+4.6% | $953.0M-7.3% | $1.0B |
| Free Cash Flow | $615.0M-44.3% | $1.1B+112.5% | $520.0M+110.5% | $247.0M-76.2% | $1.0B+12.5% | $923.0M+305.6% | -$449.0M-124.5% | $1.8B |
| Investing Cash Flow | -$1.1B-2.8% | -$1.0B-25.8% | -$826.0M+7.3% | -$891.0M+12.1% | -$1.0B-0.9% | -$1.0B-5.8% | -$950.0M-0.3% | -$947.0M |
| Financing Cash Flow | -$326.0M+1.5% | -$331.0M+96.7% | -$10.0B-3293.5% | -$294.0M+15.5% | -$348.0M+54.0% | -$757.0M-204.0% | -$249.0M+15.9% | -$296.0M |
| Dividends Paid | $211.0M0.0% | $211.0M-9.1% | $232.0M+10.5% | $210.0M0.0% | $210.0M0.0% | $210.0M0.0% | $210.0M+11.7% | $188.0M |
| Share Buybacks | $22.0M-87.8% | $181.0M-95.5% | $4.0B+30907.7% | $13.0M-87.4% | $103.0M+1187.5% | $8.0M+14.3% | $7.0M-75.9% | $29.0M |
KR Financial Ratios
| Metric | Q4'26 | Q2'26 | Q1'26 | Q4'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 23.3%-0.1pp | 23.4% | N/A | 22.9%+0.4pp | 22.4% | N/A | 22.0%+0.2pp | 21.8% |
| Operating Margin | -4.5%-7.5pp | 2.9% | N/A | 2.5%-0.4pp | 2.9% | N/A | 2.7%+4.1pp | -1.4% |
| Net Margin | -3.9%-5.8pp | 1.9% | N/A | 1.8%-0.2pp | 2.1% | N/A | 1.9%+2.4pp | -0.5% |
| Return on Equity | -18.7%-28.5pp | 9.7%+2.1pp | 7.6%+2.9pp | 4.8%-2.8pp | 7.6%+1.3pp | 6.4%+0.6pp | 5.8%+7.4pp | -1.7% |
| Return on Assets | -2.6%-4.2pp | 1.6%+0.4pp | 1.2%+0.2pp | 1.0%-0.8pp | 1.8%+0.4pp | 1.5%+0.2pp | 1.3%+1.6pp | -0.4% |
| Current Ratio | 0.88-0.1 | 0.950.0 | 0.96-0.6 | 1.54+0.7 | 0.86+0.1 | 0.810.0 | 0.80+0.0 | 0.77 |
| Debt-to-Equity | 2.07+0.3 | 1.72-0.2 | 1.91+0.3 | 1.59+0.8 | 0.82-0.1 | 0.87-0.0 | 0.90-0.0 | 0.93 |
| FCF Margin | 1.8%-0.6pp | 2.5% | N/A | 0.7%-1.6pp | 2.3% | N/A | -1.3%-6.7pp | 5.4% |
Note: The current ratio is below 1.0 (0.80), indicating current liabilities exceed current assets, which may suggest potential short-term liquidity concerns.
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Frequently Asked Questions
What is Kroger's annual revenue?
Kroger (KR) reported $147.6B in total revenue for fiscal year 2026. This represents a 0.4% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Kroger's revenue growing?
Kroger (KR) revenue grew by 0.4% year-over-year, from $147.1B to $147.6B in fiscal year 2026.
Is Kroger profitable?
Yes, Kroger (KR) reported a net income of $1.0B in fiscal year 2026, with a net profit margin of 0.7%.
What is Kroger's EBITDA?
Kroger (KR) had EBITDA of $5.2B in fiscal year 2026, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Kroger have?
As of fiscal year 2026, Kroger (KR) had $3.3B in cash and equivalents against $14.5B in long-term debt.
What is Kroger's gross margin?
Kroger (KR) had a gross margin of 23.3% in fiscal year 2026, indicating the percentage of revenue retained after direct costs of goods sold.
What is Kroger's operating margin?
Kroger (KR) had an operating margin of 1.3% in fiscal year 2026, reflecting the profitability of core business operations before interest and taxes.
What is Kroger's net profit margin?
Kroger (KR) had a net profit margin of 0.7% in fiscal year 2026, representing the share of revenue converted into profit after all expenses.
Does Kroger pay dividends?
Yes, Kroger (KR) paid $1.37 per share in dividends during fiscal year 2026.
What is Kroger's return on equity (ROE)?
Kroger (KR) has a return on equity of 17.1% for fiscal year 2026, measuring how efficiently the company generates profit from shareholder equity.
What is Kroger's free cash flow?
Kroger (KR) generated $3.5B in free cash flow during fiscal year 2026. This represents a 94.5% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Kroger's operating cash flow?
Kroger (KR) generated $7.3B in operating cash flow during fiscal year 2026, representing cash generated from core business activities.
What are Kroger's total assets?
Kroger (KR) had $50.0B in total assets as of fiscal year 2026, including both current and long-term assets.
What are Kroger's capital expenditures?
Kroger (KR) invested $3.9B in capital expenditures during fiscal year 2026, funding long-term assets and infrastructure.
What is Kroger's current ratio?
Kroger (KR) had a current ratio of 0.80 as of fiscal year 2026, which is below 1.0, which may suggest potential liquidity concerns.
What is Kroger's debt-to-equity ratio?
Kroger (KR) had a debt-to-equity ratio of 2.45 as of fiscal year 2026, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Kroger's return on assets (ROA)?
Kroger (KR) had a return on assets of 2.0% for fiscal year 2026, measuring how efficiently the company uses its assets to generate profit.
What is Kroger's Altman Z-Score?
Kroger (KR) has an Altman Z-Score of 4.38, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Kroger's Piotroski F-Score?
Kroger (KR) has a Piotroski F-Score of 6 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Kroger's earnings high quality?
Kroger (KR) has an earnings quality ratio of 7.20x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
How financially healthy is Kroger?
Kroger (KR) scores 37 out of 100 on our Financial Profile, indicating weak overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.