Albertsons Companies reported second-quarter fiscal 2026 net sales and other revenue of $18.9 billion, with digital sales increasing 11% as the company launched a broader turnaround and cost-savings initiative.
The company reported net income of $51.5 million, or $0.11 per share, for the quarter ended September 12, 2026.
Adjusted net income was $179 million, or $0.36 per share, while adjusted EBITDA totaled $784 million.
Identical sales decreased 0.8% during the quarter.
Albertsons said pharmacy and digital remained areas of strength, with pharmacy sales continuing to grow despite Inflation Reduction Act headwinds and digital sales increasing 11%.
Net sales and other revenue declined slightly from $18.92 billion in the prior-year quarter to $18.89 billion.
Gross margin was 26.8%, compared with 27.0% a year earlier.
Excluding fuel and LIFO expense, gross margin declined 17 basis points, primarily reflecting higher delivery and handling costs associated with digital growth and increased shrink.
Those pressures were partially offset by improved pharmacy margins.
Selling and administrative expenses represented 25.6% of revenue, compared with 25.4% in the prior-year quarter.
Albertsons said disciplined productivity and cost-management initiatives helped offset inflationary pressure on operating expenses and higher merger-related litigation costs.
The company invested $899.6 million in capital expenditures during the first 28 weeks of fiscal 2026.
Those investments included completion of 38 store remodels, seven new store openings, and continued spending on digital and technology platforms.
Albertsons also continued returning capital to shareholders.
The company paid a quarterly dividend of $0.17 per share in August and announced another $0.17-per-share dividend payable November 6, 2026.
Albertsons repurchased 26 million shares for approximately $387.6 million during the first 28 weeks of fiscal 2026.
The company is also accelerating its broader turnaround strategy through ACI Edge, an operating structure realignment announced in July.
ACI Edge consolidated Albertsons’ 11 divisions into four regions and centralized center-store merchandising under a single enterprise team.
Albertsons said the initiative is intended to accelerate execution, increase accountability, improve operating performance, strengthen competitiveness, and create greater long-term shareholder value.
The company is now conducting a comprehensive review of its customer strategy, cost structure, operating model, portfolio of banners, markets, assets and businesses, and capital allocation priorities.
Albertsons said it plans to identify additional opportunities to simplify the organization, improve decision-making, reduce costs, and reinvest savings into customer value.
The company is no longer providing a fiscal 2026 outlook while that review is underway.
Albertsons expects to provide a refreshed short- and long-term financial framework alongside its comprehensive turnaround plan during its fourth-quarter earnings call.
The company also plans to host an investor day in spring 2027.
As of September 12, 2026, Albertsons operated 2,240 stores, including 1,709 in-store pharmacies, 408 fuel centers, 22 dedicated distribution centers, and 19 manufacturing facilities across 35 states and the District of Columbia.
KEY QUOTES:
“Although our second quarter performance was in-line with the expectations in our revised outlook, our results do not reflect the potential of the Company. We are launching a comprehensive business review to speed up improvements in Albertsons’ performance and tackle even harder a cost structure we can no longer afford. Our work will find opportunities to simplify the organization, improve decision-making, reinvest savings in customer value, and boost long-term shareholder returns.”
Susan Morris, Chief Executive Officer of Albertsons Companies
