Albertsons Companies Inc - Class A
Q2 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.48%.
Did ACI Beat Earnings? Q2 2026 Results
Albertsons delivered a stronger-than-expected second quarter for fiscal 2025, posting adjusted EPS of $0.44 against a consensus estimate of $0.40, a beat of 10.66%, as pharmacy strength and surging digital engagement drove the headline numbers. Net sales reached $18.92 billion, up 2.0% year-over-year and just ahead of the $18.89 billion analysts had expected, with identical sales rising 2.2% after adjusting for a Colorado labor strike and digital sales climbing 23% while loyalty membership grew 13% to 48.7 million members. The primary headwind was margin compression, as gross margin narrowed to 27.0% from 27.6% a year earlier, reflecting the lower-margin profile of pharmacy and higher delivery costs tied to digital expansion, pulling adjusted EBITDA down to $848.40 million from $900.60 million. On the capital front, the company unveiled a $750 million accelerated share repurchase agreement with JPMorgan Chase, signaling confidence in its trajectory. Management responded to the top-line momentum by nudging full-year identical sales guidance to 2.2% to 2.75% and raising adjusted EPS guidance to $2.06 to $2.19 per share.
- Identical sales increased 2.2% (adjusted), with strong pharmacy sales as the primary driver
- Digital sales increased 23%
- Loyalty members grew 13% to 48.7 million
- Productivity initiatives offset inflationary pressures and funded customer value proposition investments
- Selling and administrative expenses leveraged down 40 basis points as a percentage of revenue due to employee cost leverage and lower merger-related costs
“In the second quarter, we delivered solid operating and financial results while continuing to invest in our core business and elevate the customer experience. Strong performance against our strategic priorities fueled deeper engagement across our digital platforms, resulting in outsized growth in digital sales, pharmacy, and loyalty membership. Our productivity engine continued to offset inflationary pressures and fund investments in areas that matter most to our customers, including fresh categories and omnichannel convenience.”
Albertsons CEO, on the earnings call
Forward Guidance & Outlook
The company raised the lower end of its fiscal 2025 identical sales growth guidance to 2.2% to 2.75% (from 2.0% to 2.75%). Adjusted EBITDA guidance was maintained at $3.8 billion to $3.9 billion, including approximately $65 million from the 53rd week. Adjusted EPS outlook was increased to $2.06 to $2.19 per share (from $2.03 to $2.16). The effective income tax rate is expected in the range of 23.5% to 24.5%. Capital expenditures are now expected in the range of $1.8 billion to $1.9 billion (raised from $1.7 billion to $1.9 billion).
ACI YoY Financials
Figures from SEC filings and company reports. Not investment advice.