Albertsons (ACI) Q1 2026 Earnings
How Did ACI Stock React to Q1 2026 Earnings?
S&P 500 over the same 30 days: +3.67%.
Did ACI Beat Earnings? Q1 2026 Results
No. Albertsons reported Q1 2026 earnings of $0.42 a share on Jul 23, 2026, missing the $0.54 consensus estimate by 22.0%. Revenue was $24.9B against a $24.9B estimate.
Albertsons delivered a bruising first quarter of fiscal 2026, missing Wall Street's profit expectations by a wide margin even as revenue held roughly steady. Adjusted EPS came in at $0.42, falling short of the $0.54 consensus by nearly 22%, while net sales edged up just 0.2% year over year to $24.94 billion, nudging past estimates by 0.36% largely on higher fuel sales rather than core grocery momentum. The deeper story is one of margin erosion: gross margin contracted 50 basis points to 26.6%, squeezed by higher delivery and handling costs tied to digital growth, increased fuel expenses, and stepped-up investments in customer value. Identical sales declined 0.8%, with pharmacy headwinds from the Inflation Reduction Act alone dragging roughly 150 basis points off that figure. Looking ahead, Albertsons slashed its full-year adjusted EPS guidance to $1.75 to $1.85 from a prior range of $2.22 to $2.32, and now expects identical sales between -1.5% and -0.5%, prompting a securities investigation inquiry from at least one law firm on behalf of affected shareholders.
- Digital sales increased 13% during the first quarter
- Pharmacy sales continued to grow despite IRA headwinds
- Identical sales declined 0.8% due to softer industry unit trends and cautious consumer behavior
- Gross margin rate decreased to 26.6% from 27.1% driven by higher delivery/handling costs and fuel costs
- Selling and administrative expenses increased as a percentage of revenue due to rent and occupancy costs, merger-related litigation costs, and business transformation costs
- Higher interest expense due to higher average outstanding borrowings
“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.”
Albertsons CEO, on the earnings call
What Is Albertsons's Outlook?
The company 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 Inflation Reduction Act's Medicare Drug Price Negotiation Program. Adjusted EBITDA is now expected between $3.550 billion and $3.625 billion (previously $3.850 billion to $3.925 billion). Adjusted net income per share is now expected between $1.75 and $1.85 (previously $2.22 to $2.32). Capital expenditures are expected between $1.9 billion and $2.0 billion (previously $2.0 billion to $2.2 billion). The effective income tax rate is expected at 24% to 25%, unchanged. Management characterized the reduced outlook as reflecting a deliberate decision to accelerate investments in the customer value proposition and customer experience ahead of expected productivity benefits.
ACI YoY Financials
| Metric | Q1 2026 | Q1 2025 | Year over year |
|---|---|---|---|
| Revenue | $24.9B | $24.9B | +0.2% |
| Gross Profit | $6.6B | $6.7B | −1.5% |
| Operating Income | $263.6M | $449.3M | −41.3% |
| Net Income | $84.7M | $236.4M | −64.2% |
When Does Albertsons Report Next?
Figures from SEC filings and company reports. Not investment advice.