Albertsons Companies Inc - Class A
Q3 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.63%.
Did ACI Beat Earnings? Q3 2026 Results
Albertsons delivered a mixed but largely solid third quarter for fiscal 2025, beating on earnings while falling just shy of revenue expectations in a period defined by strong pharmacy momentum and aggressive capital returns. Adjusted EPS of $0.72 cleared the $0.68 consensus by 5.60%, while net sales of $19.12 billion rose 1.9% year over year, coming in 0.23% below estimates as a temporary government shutdown and delayed SNAP funding shaved an estimated 10 to 20 basis points from identical sales growth. The quarter's clearest driver was pharmacy, which powered a 2.4% identical sales increase alongside a 21% surge in digital sales and loyalty membership expanding 12% to 49.8 million members. Gross margin compressed to 27.4% from 27.9%, reflecting the inherently lower margin profile of pharmacy and higher digital fulfillment costs. Albertsons also executed a $750 million accelerated share repurchase with JPMorgan during the period. Looking ahead, the company narrowed its fiscal 2025 adjusted EPS guidance to $2.08 to $2.16 and flagged Medicare drug price negotiations as a 65 to 70 basis point headwind to fourth-quarter identical sales, a concern that at least one analyst noted could make 2026 a "mixed year" for food retailers.
- Identical sales increased 2.4% driven primarily by strong pharmacy sales growth
- Digital sales increased 21%
- Loyalty members grew 12% to 49.8 million
- Selling and administrative expenses improved as a percentage of revenue due to sales leverage on employee costs and lower merger-related costs
- Productivity initiatives partially offset increasing wage rates and inflationary pressures
“In the third quarter, we delivered solid results and continued to advance our strategic priorities. Our investments in technology and AI are fundamentally reshaping how we operate and serve our customers; driving smarter decisions, greater efficiency, and more personalized experiences. Growth in our digital and pharmacy channels, combined with disciplined execution and targeted investments, is strengthening our value proposition and positioning us for success.”
Albertsons CEO, on the earnings call
Forward Guidance & Outlook
Albertsons updated its fiscal 2025 outlook: identical sales growth of 2.2% to 2.5% (narrowed from 2.2% to 2.75%); adjusted EBITDA of $3.825 billion to $3.875 billion, including approximately $65 million from the 53rd week (narrowed from $3.8 billion to $3.9 billion); adjusted EPS of $2.08 to $2.16 per share (narrowed from $2.06 to $2.19); effective tax rate of 23% to 24%; and capital expenditures of $1.8 billion to $1.9 billion (unchanged). The company noted the Inflation Reduction Act's Medicare Drug Price Negotiation Program taking effect January 1, 2026 will negatively impact fourth-quarter identical sales by 65 to 70 basis points.
ACI YoY Financials
Figures from SEC filings and company reports. Not investment advice.