The combination of a large EPS miss, negative identical sales, and a material guidance cut points to ongoing fundamental deterioration. Traders should expect significant downside pressure on the stock. Key items to watch: the ACI Edge restructuring execution, consumer spending trends (especially into holiday season), and whether management can stabilize identical sales amid aggressive investments.
Price Chart
Executive Summary
Albertsons reported Q1 FY2026 adjusted EPS of $0.42, well below the $0.54 consensus estimate, while revenue of $24.94B modestly exceeded $24.85B expectations. However, identical sales declined 0.8%, gross margin compressed, and management slashed full-year guidance for Adjusted EBITDA from $3.85-3.925B to $3.55-3.625B and Adjusted EPS from $2.22-2.32 to $1.75-1.85. The earnings miss and guidance cut indicate significant operational headwinds from softer consumer trends and ongoing pharmacy IRA impacts.
Key Financial Metrics
Key Facts
- Q1 FY2026 adjusted EPS $0.42 missed consensus of $0.54 by ~22%
- Revenue $24.94B essentially flat (+0.2% YoY) but identical sales declined 0.8%
- Full-year FY2026 guidance lowered: Adjusted EBITDA to $3.55-3.625B (from $3.85-3.925B), Adjusted EPS to $1.75-1.85 (from $2.22-2.32)
- Net income fell 64% to $84.7M from $236.4M in the year-ago quarter
- Gross margin contracted 50bps to 26.6% due to digital delivery costs and higher fuel costs
- Announced 'ACI Edge' restructuring: consolidation from 11 divisions to 4 regions and centralization of center-store merchandising
- Share repurchases of $226.5M (13.4M shares) and quarterly dividend of $0.17 per share continued
Financial Impact
Adjusted EPS miss of ~$0.12 vs consensus; FY guidance cut of ~22% for Adjusted EPS midpoint; revenue miss avoided by a narrow margin
Risk Factors
- Further deterioration in consumer spending and grocery unit trends
- Execution risk around the ACI Edge restructuring and division consolidation
- Ongoing headwinds from Inflation Reduction Act on pharmacy margins
- Leverage increase (net debt ratio rose to 2.33x from 1.96x) and rising interest expense
- Potential additional opioid-related liabilities beyond the $773.8M framework charge
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001646972-26-000041 |
| Document: aci-20260723.htm | 0001646972-26-000041 |
| Document: 0001646972-26-000041-index-headers.html | 0001646972-26-000041 |
| Document: 0001646972-26-000041-index.html | 0001646972-26-000041 |
| Document: 0001646972-26-000041.txt | 0001646972-26-000041 |
| 8-K Data (Synthetic) | 0001646972-26-000041 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 10, 2026 22d ago | 3 | $12.08 $12.35 | ▲ +2.24% | ▲ +2.46% | $11.75 (−2.73%) |
Sep 9, 2026 23d ago | 8-K | $11.85 $12.82 | ▲ +8.14% | ▲ +8.48% | $11.75 (−0.84%) |
Aug 26, 2026 5w ago | Court Ruling | $12.40 $12.48 | ▼ −0.65% | ▼ −0.77% | $11.75 (+5.24%) |
Aug 12, 2026 7w ago | Institutional Cluster | $12.01 $12.12 | ▼ −0.92% | ▼ −1.36% | $11.75 (+2.16%) |
Aug 11, 2026 7w ago | Court Ruling | $12.25 $12.21 | ▼ −0.33% | ▲ +0.08% | $11.75 (−4.08%) |
Aug 3, 2026 8w ago | Insider Cluster | $12.07 $12.25 | ▲ +1.49% | ▲ +1.59% | $11.75 (−2.65%) |
Jul 30, 2026 9w ago | Insider Cluster | $11.60 $12.08 | ▲ +4.14% | ▲ +0.52% | $11.75 (+1.29%) |
Jul 23, 2026 10w ago | 8-K | $11.44 $11.60 | ▼ −1.40% | ▼ −0.92% | $11.75 (−2.71%) |
Jul 23, 2026 10w ago | 8-K | $11.44 $11.60 | ▲ +1.40% | ▲ +0.92% | $11.75 (+2.71%) |
Jul 9, 2026 12w ago | Court Ruling | $14.34 $15.02 | ▲ +4.74% | ▲ +4.87% | $11.75 (−18.06%) |
US Market Status
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