Kroger (KR) stock was up on Thursday following the release of the supermarket chain’s Q2 2025 earnings report. The report started with adjusted earnings per share of $1.04, which beat Wall Street’s estimate of 99 cents. This was also an 11.8% increase year-over-year from 93 cents.
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Kroger posted revenue of $33.94 billion in its most recent earnings report, which was below analysts’ estimate of $34.1 billion. Investors will note the company’s revenue only slightly increased year-over-year from $33.91 billion. Gross margin for the quarter was 22.5% of sales, compared to the 22.1% reported in Q2 2024.
Kroger stock was up 1.85% in pre-market trading on Thursday, following a 0.89% fall yesterday. The shares have also increased 11.25% year-to-date and 21.43% over the past 12 months.
Kroger Guidance
Kroger provided an update to its full-year 2025 guidance in its latest earnings report. The company expects adjusted EPS for the year to range from $4.70 to $4.80, compared to its prior guidance of $4.60 to $4.80. Unfortunately, with a midpoint of $4.75, this could see the retailer miss Wall Street’s adjusted EPS estimate of $4.78 for the period.
Kroger also included several other 2025 outlooks in its most recent earnings report. It expects identical sales without fuel to increase 2.7% to 3.4%, operating profit of $4.8 billion to $4.9 billion, free cash flow of $2.8 billion to $3.0 billion, capital expenditures of $3.6 billion to $3.8 billion, and a tax rate of 22%.
Is Kroger Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Kroger is Moderate Buy, based on eight Buy and nine Hold ratings over the past three months. With that comes an average KR stock price target of $76.69, representing a potential 14.41% upside for the shares. These ratings and price targets will likely change as analysts update their coverage after today’s earnings report.
