As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q4. Today, we are looking at non-discretionary retail stocks, starting with Kroger (NYSE: KR).

Food is non-discretionary because it's essential for life (maybe not those Oreos?), so consumers naturally need a place to buy it. Selling food is a notoriously tough business, however, as the costs of procuring and transporting oftentimes perishable products and operating stores fit to sell those products can be high. Competition is also fierce because the alternatives are numerous. While online competition threatens all of retail, grocery is one of the least penetrated because of the nature of the product. Still, we could be one startup or innovation away from a paradigm shift.

The 9 non-discretionary retail stocks we track reported a mixed Q4. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 0.9% below.

While some non-discretionary retail stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.9% since the latest earnings results.

Kroger (NYSE: KR)

With a sprawling network of over 2,400 locations offering digital pickup services, Kroger (NYSE: KR) operates supermarkets, pharmacies, and fuel centers across 35 states, offering customers groceries, household items, and private-label products.

Kroger reported revenues of $34.73 billion, up 1.2% year on year. This print fell short of analysts’ expectations by 0.8%. Overall, it was a mixed quarter for the company with a narrow beat of analysts’ gross margin estimates but a slight miss of analysts’ revenue estimates.

Kroger delivered the weakest performance against analyst estimates of the whole group. Interestingly, the stock is up 6.4% since reporting and currently trades at $72.37.

Read our full report on Kroger here, it’s free.

Best Q4: Dollar General (NYSE: DG)

Appealing to the budget-conscious consumer, Dollar General (NYSE: DG) is a discount retailer that sells a wide range of household essentials, groceries, apparel/beauty products, and seasonal merchandise.

Dollar General reported revenues of $10.91 billion, up 5.9% year on year, outperforming analysts’ expectations by 0.9%. The business had a very strong quarter with an impressive beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.

Dollar General scored the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 17.1% since reporting. It currently trades at $120.06.

Is now the time to buy Dollar General? Access our full analysis of the earnings results here, it’s free.

Weakest Q4: Grocery Outlet (NASDAQ: GO)

Due to its differentiated procurement and buying approach, Grocery Outlet (NASDAQ: GO) is a discount grocery store chain that offers substantial discounts on name-brand products.

Grocery Outlet reported revenues of $1.22 billion, up 10.7% year on year, falling short of analysts’ expectations by 0.6%. It was a softer quarter as it posted full-year revenue guidance missing analysts’ expectations significantly and full-year EBITDA guidance missing analysts’ expectations significantly.

As expected, the stock is down 25.4% since the results and currently trades at $6.56.

Read our full analysis of Grocery Outlet’s results here.

Sprouts (NASDAQ: SFM)

Playing on the secular trend of healthier living, Sprouts Farmers Market (NASDAQ: SFM) is a grocery store chain emphasizing natural and organic products.

Sprouts reported revenues of $2.15 billion, up 7.6% year on year. This print was in line with analysts’ expectations. Zooming out, it was a mixed quarter as it also logged an impressive beat of analysts’ EBITDA estimates but full-year EPS guidance missing analysts’ expectations significantly.

The stock is up 14% since reporting and currently trades at $77.38.

Read our full, actionable report on Sprouts here, it’s free.

Target (NYSE: TGT)

With a higher focus on style and aesthetics compared to other large general merchandise retailers, Target (NYSE: TGT) serves the suburban consumer who is looking for a wide range of products under one roof.

Target reported revenues of $30.45 billion, down 1.5% year on year. This result met analysts’ expectations. Overall, it was a strong quarter as it also recorded full-year EPS guidance exceeding analysts’ expectations and a beat of analysts’ EPS estimates.

Target had the slowest revenue growth among its peers. The stock is up 2.9% since reporting and currently trades at $116.44.

Read our full, actionable report on Target here, it’s free.

Market Update

Late in 2025 into early 2026, there was hand wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure?

These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.