Kroger Co (NYSE:KR, XETRA:KOG) has reported its fourth quarter financial results, with earnings surpassing Wall Street expectations, even as the food retailer's revenue slightly lagged estimates.

For the fourth quarter, Kroger posted GAAP earnings per share of $1.35, exceeding the consensus estimate of $1.28.

Revenue came in at $34.73 billion, up 1.2% from the same period last year but slightly below analysts’ forecast of $35.02 billion.

Adjusted EBITDA fell short of expectations, totaling $1.34 billion compared with the anticipated $1.94 billion, representing a margin of 3.9%, down from estimates.

Same-store sales increased 2.4% year over year, in line with the prior-year period, and operating margin held steady at 3.6%. Free cash flow margin improved to 4.8%, up from 1.5% in the fourth quarter of 2024.

For the full-year, Kroger reported operating profit of $1.9 billion and GAAP EPS of $1.54, which included $2.5 billion in impairment and related charges tied to its automated fulfillment network. Adjusted figures, excluding these charges, showed operating profit of $4.9 billion and EPS of $4.85.

The company recorded over $16 billion in eCommerce sales for 2025 and completed a strategic review of its eCommerce operations, projecting $400 million in operating profit improvements for 2026.

Kroger also highlighted its alternative profit businesses, which generated $1.5 billion in operating profit, and ongoing capital returns, including a $7.5 billion share repurchase authorization, with $5 billion executed through an accelerated program and an additional $2.5 billion in open-market transactions. The board approved an additional $2 billion share repurchase authorization.

“Kroger delivered a strong finish to the year, with improving market share trends and solid sales growth that reflect meaningful progress strengthening the business,” CEO Greg Foran said.

Shares of Kroger traded up 4.3% at about $71 following the report.