Sprouts Farmers Market (NASDAQ:SFM) Posts Quarterly Earnings Results, Beats Estimates By $0.03 EPS

Sprouts Farmers Market (NASDAQ:SFM) posted its quarterly earnings data on Thursday. The company reported $0.92 earnings per share for the quarter, topping the consensus estimate of $0.89 by $0.03, Zacks reports. Sprouts Farmers Market had a return on equity of 38.51% and a net margin of 5.95%.The firm had revenue of $2.15 billion during the quarter, compared to analyst estimates of $2.15 billion. During the same period last year, the company posted $0.79 EPS. The business’s quarterly revenue was up 7.6% on a year-over-year basis. Sprouts Farmers Market updated its FY 2026 guidance to 5.280-5.440 EPS and its Q1 2026 guidance to 1.660-1.700 EPS.

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

• Full‑year 2025 results were strong: comparable store sales grew ~7.3%, total sales rose to about $8.8 billion (≈+14%), and diluted EPS was $5.31 (+42%), reflecting margin expansion and execution.
• 2026 is expected to be challenging — on a 52‑week basis management guides comps of -1% to +1%, EBIT $675–695M and EPS $5.28–5.44, with a weak Q1 (comps -3% to -1%) and first‑half margin pressure from fixed‑cost deleverage and loyalty rollouts.
• The loyalty program exceeded sign‑up expectations and pressured gross margin initially, but management is investing in personalization and analytics to use that data to increase frequency, basket and long‑term customer value.
• Operational improvements and assortment differentiation are progressing: self‑distribution for fresh meat now services ~75% of stores (Northern CA DC coming online), shrink has improved, Sprouts Brand is ~26% of sales (> $2B), and >7,000 new SKUs were introduced.
• Strong cash generation underpins shareholder returns — $716M operating cash flow in 2025, $472M in buybacks completed last year, management plans at least $300M of repurchases in 2026 and has ~$836M remaining authorization.

Sprouts Farmers Market Price Performance

Shares of SFM opened at $67.48 on Friday. The business’s fifty day moving average is $74.43 and its 200 day moving average is $98.38. Sprouts Farmers Market has a 12-month low of $64.75 and a 12-month high of $182.00. The company has a quick ratio of 0.53, a current ratio of 1.05 and a debt-to-equity ratio of 0.04. The stock has a market cap of $6.57 billion, a P/E ratio of 12.73, a P/E/G ratio of 0.74 and a beta of 0.75.

Analyst Ratings Changes

Several equities analysts have issued reports on SFM shares. Royal Bank Of Canada dropped their price target on Sprouts Farmers Market from $140.00 to $114.00 and set an “outperform” rating on the stock in a research note on Friday. JPMorgan Chase & Co. lowered their price objective on shares of Sprouts Farmers Market from $88.00 to $77.00 and set a “neutral” rating for the company in a research note on Friday. Evercore reiterated an “outperform” rating on shares of Sprouts Farmers Market in a research report on Tuesday, February 10th. Bank of America cut their target price on shares of Sprouts Farmers Market from $104.00 to $92.00 and set a “buy” rating on the stock in a research note on Friday. Finally, Wells Fargo & Company reduced their price target on shares of Sprouts Farmers Market from $110.00 to $100.00 and set an “overweight” rating for the company in a report on Friday. Eight equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company’s stock. According to MarketBeat.com, Sprouts Farmers Market has an average rating of “Moderate Buy” and an average price target of $108.15.

Insider Buying and Selling at Sprouts Farmers Market

In other news, insider John Scott Neal sold 17,471 shares of the business’s stock in a transaction dated Wednesday, December 3rd. The shares were sold at an average price of $85.20, for a total transaction of $1,488,529.20. Following the completion of the sale, the insider directly owned 14,178 shares of the company’s stock, valued at $1,207,965.60. The trade was a 55.20% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CMO Alisa Gmelich sold 3,161 shares of the company’s stock in a transaction dated Friday, December 12th. The stock was sold at an average price of $79.39, for a total transaction of $250,951.79. Following the completion of the sale, the chief marketing officer owned 5,552 shares in the company, valued at $440,773.28. This represents a 36.28% decrease in their position. The disclosure for this sale is available in the SEC filing. Corporate insiders own 1.10% of the company’s stock.

Institutional Trading of Sprouts Farmers Market

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Bank of America Corp DE raised its stake in shares of Sprouts Farmers Market by 137.0% in the second quarter. Bank of America Corp DE now owns 2,584,923 shares of the company’s stock worth $425,582,000 after purchasing an additional 1,494,014 shares during the last quarter. Voloridge Investment Management LLC grew its holdings in Sprouts Farmers Market by 652.7% during the third quarter. Voloridge Investment Management LLC now owns 1,411,246 shares of the company’s stock worth $153,544,000 after buying an additional 1,223,753 shares in the last quarter. Champlain Investment Partners LLC purchased a new stake in Sprouts Farmers Market in the 4th quarter valued at $81,557,000. Two Sigma Investments LP raised its position in Sprouts Farmers Market by 185.2% in the 3rd quarter. Two Sigma Investments LP now owns 1,300,786 shares of the company’s stock valued at $141,526,000 after buying an additional 844,717 shares during the last quarter. Finally, Alyeska Investment Group L.P. lifted its stake in Sprouts Farmers Market by 73.8% during the 4th quarter. Alyeska Investment Group L.P. now owns 1,974,943 shares of the company’s stock valued at $157,344,000 after acquiring an additional 838,328 shares in the last quarter.

Trending Headlines about Sprouts Farmers Market

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

• Positive Sentiment: Q4 beat on EPS and sales growth — Sprouts reported $0.92 EPS vs. $0.89 consensus and revenue roughly in line, with revenue up ~7.6% YoY; e-commerce rose ~15%, showing continued channel mix tailwinds. This supports the company’s underlying sales momentum. Zacks: Sprouts Q4 Earnings Beat
• Positive Sentiment: Notable investor interest — reports that billionaire Philippe Laffont has been buying SFM shares may provide a vote of confidence from an institutional value-oriented investor. Yahoo Finance: Why Sprouts is Attractive
• Neutral Sentiment: Management changes announced — Sprouts appointed a new chief merchandising officer and a chief customer officer while a long-tenured merchandising executive will retire; this is a routine leadership refresh that could influence merchandising and customer strategy over time. Business Wire: Management Changes
• Neutral Sentiment: Conference materials and call transcripts available — investors can review the company slide deck and earnings call transcript for detailed comps, margin cadence and category trends to refine near-term models. Quarter Presentation
• Negative Sentiment: Softer guidance drove the downside — Sprouts cut Q1 FY2026 EPS guidance to $1.66–$1.70 (consensus ~$1.81) and FY2026 EPS to $5.28–$5.44 (consensus ~$5.68); revenue guidance ($9.2–$9.4B) also trails Street estimates. Management flagged a “soft start” to 2026 and margin pressure ahead, which is the clearest near‑term negative catalyst. Business Wire: Q4 Results & Guidance
• Negative Sentiment: Analysts trimmed targets and tone — JPMorgan cut its price target to $77 and moved to Neutral, while Bank of America trimmed its target to $92 (maintaining Buy). Those reductions and the neutral shift from a major house amplify selling pressure after the light guidance. TickerReport/Benzinga: JPMorgan PT Cut Benzinga: Bank of America PT Trim

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.