Investing.com -- The Kroger Co. (NYSE: KR) reported first quarter results that met analyst expectations for earnings while revenue exceeded estimates, though shares fell 1.4% premarket following the announcement.

The grocery chain posted adjusted earnings per share of $1.58, matching the analyst consensus of $1.58. Revenue reached $46.1 billion, surpassing the estimate of $45.35 billion and representing a 2.2% increase from $45.1 billion in the same quarter last year. Identical sales without fuel rose 1.0%, down from 3.2% growth in the prior year period.

The company maintained its full-year 2026 guidance, projecting adjusted EPS of $5.10 to $5.30, with a midpoint of $5.20 below the analyst consensus of $5.24.

Adjusted FIFO operating profit for the quarter was $1.544 billion, up from $1.518 billion in the first quarter of 2025. The company reported adjusted eCommerce sales growth of 19%, while Kroger Precision Marketing profit grew over 20%.

"We are pleased with our first quarter results, but we know there is more work to do," said CEO Greg Foran. "That is why we are building a culture that is never satisfied, with a constant focus on serving our customers better."

Gross margin declined to 22.7% from 23.0% in the prior year period, primarily driven by higher transportation costs, egg deflation, and planned price investments. These pressures were partially offset by favorable pharmacy mix, improved eCommerce profitability, and sourcing benefits.

For fiscal 2026, Kroger maintained its guidance for identical sales without fuel of 1.0% to 2.0% and adjusted FIFO operating profit of $5.0 billion to $5.2 billion. The company expects free cash flow of $2.7 billion to $2.9 billion and capital expenditures of $3.8 billion to $4.0 billion.