Albertsons Companies (ACI) Q2 2026 Financial Results Summary
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Albertsons (ACI) Q2 2026: Revenue Decline, Cost Management Focus — Cautiously Disappointed
Albertsons Companies, Inc. (NYSE: ACI) reported its second quarter fiscal 2026 results, revealing a slight revenue decline compared to the previous year. Specifically, net sales and other revenue decreased by $21.1 million, or 0.1%, to $18,894.7 million for the 12 weeks ended September 12, 2026, down from $18,915.8 million during the same period last year. This performance reflects a challenging environment, particularly with identical sales decreasing by 0.8%.
Key Financial Metrics
- Net Sales and Other Revenue: $18,894.7 million (Q2 2026) vs. $18,915.8 million (Q2 2025) — a decrease of $21.1 million or -0.1% YoY.
- Identical Sales: Decreased by 0.8%.
- Net Income: $52 million, or $0.11 per share, compared to $168.5 million, or $0.30 per share in Q2 2025 — a decline of $116.5 million or -69.1% YoY.
- Adjusted Net Income: $179 million, or $0.36 per share, down from $248.4 million, or $0.44 per share — a decrease of $69.4 million or -27.9% YoY.
- Adjusted EBITDA: $784 million, compared to $848.4 million in Q2 2025 — a decline of $64.4 million or -7.6% YoY.
- Gross Margin Rate: 26.8% in Q2 2026 vs. 27.0% in Q2 2025.
- Selling and Administrative Expenses: Increased to 25.6% of net sales from 25.4% YoY.
Analyst View
This quarter can be viewed as disappointing for shareholders, primarily due to the significant drop in net income and adjusted net income, which fell by 69.1% and 27.9%, respectively. The decline in identical sales and the overall revenue decrease indicate that Albertsons is struggling to maintain its market position amid rising costs and competitive pressures. The company's gross margin also contracted slightly, reflecting challenges in managing costs effectively.
Despite these setbacks, Albertsons is taking proactive steps to address its performance issues. The company is launching a comprehensive business review aimed at improving operational efficiency and cost management. CEO Susan Morris emphasized the need for a turnaround strategy to enhance shareholder value, which could be a positive long-term catalyst if executed effectively.
Capital Allocation and Shareholder Returns
Albertsons continues to prioritize shareholder returns, having paid a quarterly dividend of $0.17 per share on August 7, 2026, with another dividend of the same amount scheduled for November 6, 2026. The company has also been active in share repurchases, buying back 26.0 million shares for a total of $387.6 million in the first 28 weeks of fiscal 2026.
Forward Catalyst
Investors should closely monitor the outcomes of the comprehensive business review that Albertsons is undertaking. The company has indicated that it will not provide a fiscal 2026 outlook until this review is completed, which is expected to be during the fourth quarter earnings call. The results of this review could significantly impact the company's strategic direction and financial performance moving forward. Additionally, the upcoming investor day planned for Spring 2027 may provide further insights into Albertsons' long-term strategy and growth potential.
In summary, while the current quarter reflects challenges for Albertsons, the company's commitment to a turnaround strategy and focus on cost management may position it for recovery in the future. However, shareholders will need to remain vigilant as the company navigates these turbulent waters.
Condensed Consolidated Statements of Operations
Note: All amounts are in millions.
| 12 weeks ended | 2026 | 2025 | 28 weeks ended | 2026 | 2025 |
|---|---|---|---|---|---|
| Net sales and other revenue | $18,894.7 | $18,915.8 | $43,830.0 | $43,700.0 | |
| Cost of sales | $13,800.0 | $13,800.0 | $32,140.0 | $31,900.0 | |
| Gross margin | $5,050.0 | $5,106.0 | $11,690.0 | $11,800.0 | |
| Selling and administrative expenses | $4,840.0 | $4,806.0 | $11,210.0 | $11,100.0 | |
| Loss (gain) on property disposals and impairment losses, net | $42.4 | $4.4 | $37.7 | -$27.5 | |
| Operating income | $174.5 | $295.3 | $438.1 | $744.6 | |
| Interest expense, net | $125.0 | $105.3 | $291.7 | $247.1 | |
| Other income (expense), net | -$13.2 | -$29.7 | -$30.0 | -$33.6 | |
| Income before income taxes | $62.7 | $219.7 | $176.4 | $531.1 | |
| Income tax expense | $11.2 | $51.2 | $40.2 | $126.2 | |
| Net income | $51.5 | $168.5 | $136.2 | $404.9 |
Condensed Consolidated Balance Sheets
Note: All amounts are in millions.
| September 12, 2026 | February 28, 2026 | |
|---|---|---|
| Cash and cash equivalents | $282.0 | $198.6 |
| Receivables, net | $1,069.7 | $932.6 |
| Inventories, net | $5,282.1 | $5,173.9 |
| Other current assets | $422.0 | $410.6 |
| Total current assets | $7,055.8 | $6,715.7 |
| Property and equipment, net | $10,047.8 | $9,903.7 |
| Operating lease right-of-use assets | $6,239.8 | $6,102.4 |
| Intangible assets, net | $2,023.8 | $2,156.1 |
| Goodwill | $1,201.0 | $1,201.0 |
| Other assets | $655.1 | $687.0 |
| TOTAL ASSETS | $27,223.3 | $26,765.9 |
| Accounts payable | $4,181.3 | $4,021.2 |
| Accrued salaries and wages | $1,326.1 | $1,348.3 |
| Current maturities of long-term debt and finance lease obligations | $882.2 | $534.0 |
| Current operating lease obligations | $740.6 | $736.7 |
| Other current liabilities | $1,518.5 | $1,183.8 |
| Total current liabilities | $8,648.7 | $7,824.0 |
| Long-term debt and finance lease obligations | $8,446.0 | $8,412.6 |
| Long-term operating lease obligations | $5,848.2 | $5,613.6 |
| Deferred income taxes | $595.4 | $630.6 |
| Other long-term liabilities | $2,252.0 | $2,448.9 |
| Class A common stock | $6.0 | $6.0 |
| Additional paid-in capital | $2,239.7 | $2,219.4 |
| Treasury stock, at cost | -$2,238.1 | -$1,850.5 |
| Accumulated other comprehensive income | $80.3 | $83.2 |
| Retained earnings | $1,345.1 | $1,378.1 |
| Total stockholders' equity | $1,433.0 | $1,836.2 |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $27,223.3 | $26,765.9 |
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