Kroger lifts earnings guidance as digital sales surge 17% in Q3 2025
The Kroger Co. (KR), one of the largest food and drug retailers in the US, has released its latest financial updates. Despite a recent dip in share price, the company reported solid growth in sales and raised its earnings guidance for the year.
Analysts remain optimistic, with a consensus rating of 'Moderate Buy' and a price target suggesting further upside.
Kroger’s third-quarter results for 2025 showed a 2.6% rise in identical sales, excluding fuel. The company also recorded a 17% jump in eCommerce sales, reflecting strong digital growth. Management now expects the online business to turn profitable by 2026.
The retailer adjusted its full-year earnings forecast, lifting the lower end of its adjusted EPS guidance to a range of $4.75 to $4.80. This update follows an adjusted FIFO operating profit of $1.09 billion. CEO Ron Sargent highlighted the company’s focus on expanding both in-store and online operations.
Despite these gains, Kroger’s stock has fallen 5.7% over the past three months, underperforming the broader consumer staples sector. Shares are also down 14.6% from their 52-week peak of $74.90. However, on a year-to-date basis, the stock has still climbed 4.6%, slightly ahead of the sector’s performance.
Kroger operates a wide range of store formats, from combination food and drug stores to price-focused warehouses. In addition to groceries and pharmacy services, the company manufactures its own food products and runs fuel centres. With a market capitalisation of $43.9 billion, it remains a key player in the US retail market.
Analysts currently rate Kroger stock as a 'Moderate Buy,' with an average price target of $77.50. This represents a potential 17.1% increase from its current level. The company’s updated earnings guidance and eCommerce growth plans suggest confidence in future performance. Shares have faced recent pressure but continue to outpace the sector over the longer term.
