Sprouts Farmers Market (NASDAQ:SFM) Posts Quarterly Earnings Results, Beats Estimates By $0.04 EPS

Sprouts Farmers Market (NASDAQ:SFM) posted its earnings results on Wednesday. The company reported $1.71 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.67 by $0.04, FiscalAI reports. Sprouts Farmers Market had a return on equity of 38.21% and a net margin of 5.95%.The firm had revenue of $2.33 billion for the quarter, compared to analysts’ expectations of $2.33 billion. During the same period in the previous year, the firm earned $1.81 earnings per share. The business’s revenue was up 4.1% compared to the same quarter last year. Sprouts Farmers Market updated its FY 2026 guidance to 5.320-5.480 EPS and its Q2 2026 guidance to 1.320-1.360 EPS.

Here are the key takeaways from Sprouts Farmers Market’s conference call:

• Q1 total sales were $2.3 billion (+4%) with comps down 1.7% and diluted EPS of $1.71 (-6%); management maintained full?year sales guidance of 4.5%–6.5%, raised FY EPS to $5.32–$5.48 (assumes ?$300M buybacks), and guided Q2 comps to -2%–0% with EPS of $1.32–$1.36.
• Profitability faced headwinds as gross margin fell 20 bps to 39.4% primarily from loyalty investment and unfavorable shrink, SG&A rose (fixed?cost deleverage), and management expects ~75 bps of EBIT margin pressure in Q2 from lower comps, loyalty annualization and higher fuel costs.
• Supply?chain progress: meat self?distribution is nearly complete and the new Northern California distribution center opens in Q2, with self?distribution already contributing margin benefits.
• Strategic growth drivers remain intact — Sprouts launched ~1,500 new items YTD, organic penetration is high (>55% of produce; >34% of total sales), e?commerce grew ~10% to ~16% of sales, and loyalty/personalization initiatives are scaling with vendor support.
• Affordability actions are underway (selective price cuts and more focused promotions on core basket items such as coffee); early tests show unit uplift, but management is measuring returns before broader rollouts to balance traffic gains with margin impact.

Sprouts Farmers Market Stock Up 17.7%

Shares of NASDAQ SFM traded up $12.60 during trading on Thursday, reaching $83.73. The company had a trading volume of 2,813,481 shares, compared to its average volume of 2,679,997. Sprouts Farmers Market has a 12-month low of $64.75 and a 12-month high of $182.00. The stock has a market cap of $7.92 billion, a PE ratio of 15.75, a P/E/G ratio of 1.55 and a beta of 0.67. The business’s 50-day moving average is $76.08 and its 200 day moving average is $79.87. The company has a quick ratio of 0.44, a current ratio of 0.93 and a debt-to-equity ratio of 0.06.

Analyst Ratings Changes

Several equities analysts have recently issued reports on the company. Royal Bank Of Canada reduced their target price on Sprouts Farmers Market from $140.00 to $114.00 and set an “outperform” rating on the stock in a research note on Friday, February 20th. BMO Capital Markets reissued a “market perform” rating and set a $70.00 target price on shares of Sprouts Farmers Market in a research note on Friday, February 20th. The Goldman Sachs Group set a $111.00 target price on Sprouts Farmers Market in a research note on Friday, February 20th. Zacks Research raised Sprouts Farmers Market from a “strong sell” rating to a “hold” rating in a research note on Monday, January 12th. Finally, Barclays reduced their target price on Sprouts Farmers Market from $122.00 to $100.00 and set an “overweight” rating on the stock in a research note on Wednesday, February 18th. Seven research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $96.00.

Key Sprouts Farmers Market News

Here are the key news stories impacting Sprouts Farmers Market this week:

• Positive Sentiment: Q1 EPS beat: Sprouts posted $1.71 EPS versus the $1.67 consensus, a small upside that helped calm near?term earnings concerns. Sprouts Farmers Q1 Earnings Top Estimates on New Stores and E-commerce
• Positive Sentiment: New stores and digital growth: Management cited new-store openings and ~10% e?commerce growth as key drivers of sales growth, suggesting multiple channels are offsetting some brick?and?mortar weakness. Sprouts Farmers Market, Inc. Reports First Quarter 2026 Results
• Neutral Sentiment: Revenue roughly in line: Sales were $2.33B (about consensus) and up ~4.1% year?over?year — growth but not accelerating. Investors should note topline met expectations, limiting surprise risk. MarketBeat Q1 Coverage and Materials
• Neutral Sentiment: Call materials available: The earnings call transcript and slide deck give color on merchandising, supply chain and customer engagement priorities that will drive execution. Review the transcript for margin cadence. Earnings Call Transcript
• Negative Sentiment: Guidance shy of Street: Sprouts issued Q2 EPS guidance of $1.320–1.360 (consensus ~1.360) and FY 2026 EPS of $5.320–5.480 (consensus ~5.520); revenue guide also below consensus — a modest headwind that tempers upside. Company Press Release with Guidance
• Negative Sentiment: Comparable sales and margin pressure: Management noted comps were down and margins were pressured versus year?ago levels (FY/quarter EPS below last year), raising near?term profitability concerns. Zacks Coverage on Q1 Results

Insider Transactions at Sprouts Farmers Market

In other news, insider Timmi Zalatoris sold 426 shares of the stock in a transaction on Monday, March 23rd. The stock was sold at an average price of $78.52, for a total value of $33,449.52. Following the sale, the insider directly owned 13,045 shares of the company’s stock, valued at approximately $1,024,293.40. This represents a 3.16% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, SVP Kim Coffin sold 313 shares of the stock in a transaction on Friday, March 20th. The stock was sold at an average price of $83.97, for a total value of $26,282.61. Following the completion of the sale, the senior vice president directly owned 23,332 shares in the company, valued at approximately $1,959,188.04. This represents a 1.32% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 129,750 shares of company stock valued at $10,566,838. 1.30% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Sprouts Farmers Market

Institutional investors have recently modified their holdings of the business. Newbridge Financial Services Group Inc. purchased a new stake in shares of Sprouts Farmers Market during the second quarter valued at $29,000. FWL Investment Management LLC boosted its position in shares of Sprouts Farmers Market by 72.5% during the third quarter. FWL Investment Management LLC now owns 426 shares of the company’s stock valued at $46,000 after buying an additional 179 shares during the last quarter. State of Wyoming bought a new position in Sprouts Farmers Market in the second quarter valued at about $77,000. Ossiam bought a new position in Sprouts Farmers Market in the third quarter valued at about $74,000. Finally, Empowered Funds LLC bought a new position in Sprouts Farmers Market in the fourth quarter valued at about $69,000.

About Sprouts Farmers Market

Sprouts Farmers Market, Inc (NASDAQ: SFM) is a specialty grocery retailer focused on fresh, natural and organic foods. Headquartered in Phoenix, Arizona, the company operates stores designed to offer an open-market shopping experience, emphasizing quality produce sourced from regional farmers alongside organic pantry staples, dairy, meat and seafood. Sprouts’ product assortment also includes bulk foods, vitamins and supplements, a deli and prepared foods, reflecting its commitment to wellness and affordable healthy living.

Founded in 2002 by members of the Boney family, Sprouts began as a single farmers market in Chandler, Arizona.