10-Q · July 29, 2026
Sprouts delivered Q2 revenue of $2.326 billion, up 5% year over year but modestly below the prior quarter's $2.33 billion, while diluted EPS of $1.37 rose 1% year over year but fell from $1.71 in Q1. Gross margin…
Earnings analysis · 10-Q
SFM earnings analysis
Filed October 28, 2026 · Our reading of the company's report
The latest report
Sprouts delivered Q3 revenue of $2.305 billion, up approximately 4.8% year over year, but diluted EPS of $1.21 missed the $1.23 consensus estimate and operating income fell to $152.8 million from $157.4 million.…
Read full summary
Sprouts delivered Q3 revenue of $2.305 billion, up approximately 4.8% year over year, but diluted EPS of $1.21 missed the $1.23 consensus estimate and operating income fell to $152.8 million from $157.4 million. Comparable-store sales declined 0.9%, with Q4 guidance calling for a further 2.0%-4.0% decline, signaling continued near-term traffic and affordability pressure. The company maintained a growth-oriented outlook of approximately 4.3% full-year sales growth, 42 net new stores, and approximately $605 million of EBIT, while repurchasing 1,126,323 shares.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.21
- Operating margin
- 6.63%
What stood out
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Sales grew year over year
Q3 revenue was $2.305 billion, up approximately 4.8% from $2.2 billion in Q3 2025, although it was below the $2.331 billion consensus estimate.
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Full-year outlook remains intact
The company expects approximately 4.3% full-year 2026 net sales growth, approximately $605 million of EBIT, and approximately $4.80 of diluted EPS.
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Unit expansion continues
Management expects 42 net new stores in fiscal 2026 and approximately $310 million of capital expenditures, supporting continued unit expansion.
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Share repurchases remained active
The company repurchased 1,126,323 shares during the quarter, leaving approximately $536.785 million available under the repurchase authorization.
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No credit-agreement borrowings
As of September 27, 2026, the company had no outstanding borrowings under its Credit Agreement, limiting near-term floating-rate debt exposure.
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Controls remained effective
Disclosure controls and procedures were concluded to be effective as of September 27, 2026, with no material changes in internal control over financial reporting during the quarter.
What to watch
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Earnings and operating income missed
Diluted EPS was $1.21 versus the $1.23 consensus estimate, and Q3 operating income declined to $152.8 million from $157.4 million a year earlier.
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Negative comparable-store sales
Comparable-store sales declined 0.9% in Q3, while Q4 guidance calls for a further comparable-store sales decline of 2.0% to 4.0%, indicating continued traffic and affordability pressure.
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Earnings growth lagged sales
Q3 diluted EPS of $1.21 declined from $1.22 in Q3 2025, despite revenue growth of approximately 4.8%.
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Capital allocation pressure
The company authorized approximately $310 million of full-year 2026 capital expenditures while also repurchasing 1,126,323 shares in Q3, creating competing uses of cash if operating performance weakens.
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Planned insider share sales
The CEO entered a new Rule 10b5-1 plan covering sales of up to 206,896 shares from December 14, 2026 through May 4, 2027, following termination of a prior plan covering up to 122,830 shares.
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Floating-rate exposure remains
The company identifies SOFR-based interest-rate exposure under its Credit Agreement; although borrowings were $0 as of September 27, 2026, future borrowings could be affected by rate fluctuations.
Management's outlook
The filing-related Q3 update provides Q4 2026 diluted EPS guidance of $0.47-$0.51, Q4 comparable-store sales guidance of -2.0% to -4.0%, and full-year 2026 expectations of approximately 4.3% net sales growth, approximately $605 million of EBIT, approximately $4.80 diluted EPS, 42 net new stores, and approximately $310 million of capital expenditures. No change versus the prior outlook was disclosed.
Earlier filings 4
10-Q · April 29, 2026
Sprouts Farmers Market (SFM) reported a Q1 2026 revenue of $2.33 billion, representing a 4% increase year-over-year. Although diluted EPS decreased to $1.71 from $1.81 due to lower net income, management remains focused…
10-K · February 19, 2026
Sprouts (SFM) shows multi-year top-line and margin improvement driven by store growth, product innovation and supply‑chain initiatives. Fiscal 2025 benefitted from opening 112 new stores (2021–2025), Sprouts Brand…
10-Q · October 29, 2025
Sprouts reported a year-over-year revenue increase to $2,200,430 (thousands) and diluted EPS of $1.22 for the thirteen weeks ended September 28, 2025, with gross profit of $851,051 and operating income of $157,398.…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.