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Albertsons (ACI) is making a nice move higher today after reporting its Q2 (Aug) results that featured a solid EPS beat, while revenue rose 2% yr/yr to $18.92 bln, roughly in line with expectations.

• Identical sales increased +2.2%, a slight deceleration from +2.8% in Q1 (May), in line with expectations and adjusted for a 12 bps impact from the Colorado labor dispute.
• Digital platforms continue to drive growth, with e-commerce up 23% and pharmacy up 19% on strong GLP-1 demand and share gains.
• Management noted that e-commerce growth isn't flattening, with penetration now well above 9%, serving as an engine for customer acquisition, retention, and engagement.
• Boosting sentiment was the $750 mln accelerated share repurchase program, with management emphasizing that its stock remains underappreciated and undervalued.
• The company also nudged the lower end of its ID sales guidance to 2.20-2.75% from 2.00-2.75%, and raised its FY26 EPS guidance to $2.06-2.19 from $2.03-2.16, reflecting the accretive nature of the share buyback.

Briefing.com Analyst Insight

This was a good quarter for ACI and enough to get the stock moving again after trending near its lows. The company is delivering on its strategic pillars, with e-commerce and pharmacy driving meaningful gains and loyalty metrics strengthening. While these channels carry lower margins, they continue to build customer stickiness and frequency, helping ACI fend off growing competition from club and mass retailers. The $750 mln buyback and tighter cost discipline reinforce management's confidence and provide support as it works toward its 2026 growth algorithm.