Albertsons Faces Near-Term Earnings Uncertainty, BofA Says

10:59 AM EDT, 10/14/2026 (MT Newswires) -- Albertsons (ACI) delivered solid fiscal Q2 results but also announced that it is no longer providing fiscal 2026 guidance until a comprehensive business review is completed during fiscal Q4, BofA Securities said in a note Wednesday. The company's "earnings power and valuation could both see pressure over the next 12-18 months as [Albertsons] reviews its customer strategy, cost structure, operating model, portfolio of banners, market assets [and] businesses and capital allocation priorities," the note said. Additionally, a growing number of initiatives at Albertsons has "contributed to operational complexity, competing priorities and higher operating costs without effectively improving key metrics," BofA said. The investment firm said it sees "near-term earnings pressures as lower-income consumers continue to trade down, supplier cost increases could further challenge affordability and risk of share loss may be rising in a competitive grocery environment." Albertsons reported a fiscal Q2 adjusted net income Tuesday of $0.36 per diluted share, down from $0.44 a year earlier. Analysts polled by FactSet expected $0.33. Net sales and other revenue for the quarter ended Sept. 12 were $18.89 billion, down from $18.92 billion a year earlier. Analysts expected $18.87 billion. BofA also noted that the retailer's gross margin of 26.8% was slightly above the consensus estimate. BofA downgraded Albertsons' rating to underperform from neutral and cut its price target to $12 from $16. Price: 12.68, Change: -0.04, Percent Change: -0.31