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Albertsons

Albertsons (ACI) Q1 2027 Earnings

Reported Jul 23, 2026 at 7:31 AM ET · SEC Source

Q1 27 EPS

$0.42

MISS 21.99%

Est. $0.54

Q1 27 Revenue

$24.94B

BEAT +0.40%

Est. $24.84B

vs S&P Since Q1 27

-23.0%

TRAILING MARKET

ACI -18.2% vs S&P +4.8%

Market Reaction

Did ACI Beat Earnings? Q1 2027 Results

Albertsons Companies delivered a disappointing first quarter of fiscal 2026, missing Wall Street's earnings expectations by a wide margin and slashing its full-year outlook, ending a five-quarter streak of beating consensus EPS estimates. The grocery… Read more Albertsons Companies delivered a disappointing first quarter of fiscal 2026, missing Wall Street's earnings expectations by a wide margin and slashing its full-year outlook, ending a five-quarter streak of beating consensus EPS estimates. The grocery chain posted adjusted EPS of $0.42, falling 21.99% short of the $0.54 consensus, as GAAP net income collapsed to $84.70 million from $236.40 million a year ago. Revenue of $24.94 billion edged ahead of the $24.84 billion estimate and rose 0.2% year-over-year, but the top-line resilience masked significant margin pressure, with gross margin compressing 50 basis points to 26.6% as higher delivery costs from surging digital sales, elevated fuel expenses, and increased customer value investments weighed heavily on profitability. The company also unveiled ACI Edge, a sweeping restructuring that consolidates 11 divisions into four regions. Looking ahead, Albertsons cut its identical sales guidance to a range of negative 1.5% to negative 0.5% and trimmed adjusted EPS expectations to $1.75 to $1.85, citing a more cautious consumer and pharmacy headwinds from Medicare drug price negotiations.

Key Takeaways

  • • Digital sales increased 13% in the quarter
  • • Pharmacy sales continued to grow despite IRA headwinds
  • • Identical sales declined 0.8%
  • • Gross margin rate decreased to 26.6% from 27.1% year-over-year
  • • Higher delivery and handling costs from digital sales growth
  • • Higher fuel costs pressured margins
  • • Pharmacy margin improvements from IRA impact partially offset pressures
  • • Selling and administrative expenses increased to 25.6% of revenue from 25.4%
  • • Interest expense increased due to higher average outstanding borrowings

ACI Forward Guidance & Outlook

Albertsons significantly lowered its fiscal 2026 outlook. Identical sales are now expected in the range of (1.5)% to (0.5)% (previously 0.0% to 1.0%), reflecting an estimated 150 basis point headwind from the IRA's Medicare Drug Price Negotiation Program. Adjusted EBITDA is expected at $3.550 billion to $3.625 billion (previously $3.850 billion to $3.925 billion). Adjusted EPS is expected at $1.75 to $1.85 (previously $2.22 to $2.32). The effective tax rate is unchanged at 24% to 25%. Capital expenditures are now expected at $1.9 billion to $2.0 billion (previously $2.0 billion to $2.2 billion). The company is choosing to accelerate investments in customer value proposition and customer experience ahead of expected productivity benefits.

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ACI YoY Financials

Q1 2027 vs Q1 2026, source: SEC Filings

“In the first quarter, our digital and pharmacy businesses continued to deliver strong growth, while core grocery faced increasing pressure from softer industry unit trends and a more cautious consumer. While these results did not meet our expectations, they underscored the need to move faster. Through ACI Edge, we are accelerating change to strengthen our competitiveness and improve execution across the business. ACI Edge includes simplifying our operating model, transitioning from eleven divisions to four regions and centralizing center-store merchandising to strengthen accountability, accelerate decision-making, and better leverage our scale, technology, and local market expertise.”

— Susan Morris, Q1 2027 Earnings Press Release

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