Kroger shares drop 10% after Q1 earnings miss, squeezed margins, and cautious outlook

Kroger reported Q1 adjusted earnings of $1.58 per share, slightly below the $1.59 consensus, while revenue rose to $46.12 billion, beating expectations. Despite revenue growth, gross margin narrowed due to higher fuel sales mix, rising transportation costs, and price investments. The company confirmed its fiscal 2026 outlook with modest sales growth and earnings guidance slightly below Wall Street estimates. Following the report, Kroger shares fell over 10% in premarket trading.