The Kroger Co (LTS:0JS2) Operating Income: $1,975 Mil (TTM As of Apr. 2026)


LTS:0JS2 The Kroger Co LTS:0JS2
69 GF Score
Price $55.52
GF Value $65.97
Valuation Modestly Undervalued
! 1 Warning Sign
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What is The Kroger Co Operating Income?

The Kroger Co LTS:0JS2 -0.04% 69 Operating Income is $1,975 Mil as of Apr. 2026. GuruFocus rates LTS:0JS2 with a GF Score™ of 69/100 and a GF Value™ of $65.97 (Modestly Undervalued). The stock has 1 warning sign investors should review.

The Kroger Co's Operating Income for the three months ended in Apr. 2026 was $1,407 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Apr. 2026 was $1,975 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. The Kroger Co's Operating Income for the three months ended in Apr. 2026 was $1,407 Mil. The Kroger Co's Revenue for the three months ended in Apr. 2026 was $46,121 Mil. Therefore, The Kroger Co's Operating Margin % for the quarter that ended in Apr. 2026 was 3.05%.

Warning Sign:

The Kroger Co operating margin has been in a 5-year decline. The average rate of decline per year is -7.3%.

The Kroger Co's 5-Year average Growth Rate for Operating Margin % was -7.30% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. The Kroger Co's annualized ROC % for the quarter that ended in Apr. 2026 was 10.37%. The Kroger Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Apr. 2026 was 17.75%.

The Kroger Co  (LTS:0JS2) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

The Kroger Co's annualized ROC % for the quarter that ended in Apr. 2026 is calculated as:

ROC % (Q: Apr. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jan. 2026 ) + Invested Capital (Q: Apr. 2026 ))/ count )
=5628 * ( 1 - 23.19% )/( (41801 + 41595)/ 2 )
=4322.8668/41698
=10.37 %

where

Invested Capital(Q: Jan. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=49953 - 11755 - ( 4578 - max(0, 18108 - 14505+4578))
=41801

Invested Capital(Q: Apr. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=50292 - 12461 - ( 4098 - max(0, 17970 - 14206+4098))
=41595

Note: The Operating Income data used here is four times the quarterly (Apr. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

The Kroger Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Apr. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Apr. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jan. 2026  Q: Apr. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=5544/( ( (30942 + max(-5714, 0)) + (31536 + max(-5930, 0)) )/ 2 )
=5544/( ( 30942 + 31536 )/ 2 )
=5544/31239
=17.75 %

where Working Capital is:

Working Capital(Q: Jan. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(2192 + 6892 + 843) - (11755 + 0 + 3886)
=-5714

Working Capital(Q: Apr. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(2101 + 7278 + 729) - (12461 + 0 + 3577)
=-5930

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Apr. 2026) EBIT data.

3. Operating Income is also linked to Operating Margin %:

The Kroger Co's Operating Margin % for the quarter that ended in Apr. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Apr. 2026 )/Revenue (Q: Apr. 2026 )
=1407/46121
=3.05 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

The Kroger Co Operating Income Related Terms

The Kroger Co Operating Income Historical Data

* Premium members only.

The historical data trend for The Kroger Co's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The Kroger Co Operating Income Chart

The Kroger Co Annual Data
Trend Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24 Jan25 Jan26
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3,477.00 4,126.00 3,096.00 3,849.00 1,890.00

The Kroger Co Quarterly Data
Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25 Jul25 Oct25 Jan26 Apr26
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1,322.00 863.00 -1,541.00 1,246.00 1,407.00
LTS:0JS2
69GF Score
The Kroger Co LTS:0JS2
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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The Kroger Co Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Apr. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,975 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of $1,975 Mil mean?
The Kroger Co (LTS:0JS2) has a Operating Income of $1,975 Mil as of Apr. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on The Kroger Co and its competitors.
Is The Kroger Co's Operating Income too high?
The Kroger Co's current Operating Income is $1,975 Mil. Overall, The Kroger Co has a GF Score™ of 69/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does The Kroger Co's Operating Income compare to SFM and ACI?
The Kroger Co's Operating Income of $1,975 Mil can be compared against companies in the Retail - Defensive industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Retail - Defensive company?
A good Operating Income depends on the Retail - Defensive industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on The Kroger Co and its competitors. The Kroger Co's current Operating Income is $1,975 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Kroger Co stock overvalued right now?
Based on GuruFocus' analysis, The Kroger Co (LTS:0JS2) is currently considered Modestly Undervalued. The stock's GF Value™ is $65.97, compared to a current price of $55.52 — trading 15.8% below its estimated fair value. The current Operating Income is $1,975 Mil. The Kroger Co's overall GF Score™ is 69/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For The Kroger Co (LTS:0JS2), the current Operating Income is $1,975 Mil as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is The Kroger Co (LTS:0JS2) Overvalued in 2026?

Based on GuruFocus' analysis, The Kroger Co stock appears to be undervalued. The current stock price of $55.52 is trading 15.8% below its estimated GF Value™ of $65.97. GuruFocus considers The Kroger Co to be Modestly Undervalued.

Key valuation signals for LTS:0JS2:

  • Operating Income: $1,975 Mil
  • GF Value™: $65.97 vs. price of $55.52 (15.8% below fair value)
  • GF Score™: 69/100 with 1 warning sign

No single metric tells the full story. See the LTS:0JS2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

The Kroger Co Business Description

Address 1014 Vine Street, Cincinnati, OH, USA, 45202-1100
Founded in 1883, Kroger is the largest pure-play supermarket operator in the United States, operating roughly 2,700 stores across more than 30 banners. Kroger's business is primarily grocery-led (roughly 78% of sales), spanning fresh food and private-label offerings, complemented by fuel centers (9%) and pharmacies (12%). The firm also generates income from advertising, data analytics, and manufacturing.
69GF Score

Get the complete analysis for LTS:0JS2

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$55.52
Price
$65.97
GF Value