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

Sprouts Farmers Market (NASDAQ:SFM) announced its quarterly earnings data on Thursday. The company reported $0.92 EPS for the quarter, topping analysts’ consensus estimates of $0.89 by $0.03, Zacks reports. Sprouts Farmers Market had a net margin of 5.93% and a return on equity of 38.03%. The business had revenue of $2.15 billion for the quarter, compared to analyst estimates of $2.15 billion. During the same quarter in the previous year, the firm posted $0.79 earnings per share. The firm’s revenue for the quarter 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 Trading Up 0.3%

Shares of Sprouts Farmers Market stock traded up $0.18 during trading on Thursday, reaching $67.85. 3,495,642 shares of the stock were exchanged, compared to its average volume of 2,961,601. 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 firm has a market cap of $6.61 billion, a price-to-earnings ratio of 13.12, a price-to-earnings-growth ratio of 0.67 and a beta of 0.75. Sprouts Farmers Market has a 1 year low of $64.75 and a 1 year high of $182.00. The stock’s fifty day moving average is $74.91 and its 200 day moving average is $99.20.

Sprouts Farmers Market News Roundup

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

• Positive Sentiment: Q4 earnings beat consensus: Sprouts reported roughly $0.92–$0.93 EPS, topping the Zacks/Street estimate (~$0.89) and showing y/y EPS improvement — a near-term earnings positive. Sprouts Q4 Press Release
• Positive Sentiment: Investor interest: Reports that billionaire Philippe Laffont has been buying SFM shares can attract other institutional attention and support the stock. Why is billionaire Philippe Laffont buying Sprouts Farmers Market stock?
• Positive Sentiment: Management refresh: Sprouts named Don Clark as chief merchandising officer and Mandy Rassi as chief customer officer while a longtime merchandising executive retires — a move that can be read positively if it accelerates merchandising and customer initiatives. Management Changes
• Neutral Sentiment: Revenue essentially in line: Q4 revenue was about $2.15B, matching expectations — comforting but not a catalyst by itself. Sprouts Q4 Earnings: What Key Metrics Have to Say
• Neutral Sentiment: Positive media/analysis pieces highlight SFM as an attractive natural/organic grocery name — useful for sentiment but not immediate fundamentals. Why Sprouts Farmers Market is One of the Best Natural and Organic Food Stocks to Buy Now
• Negative Sentiment: Management trimmed guidance: Q1 2026 EPS guidance (1.660–1.700) and FY2026 EPS guidance (5.280–5.440) were both issued below consensus (Q1 ~1.81; FY ~5.68), and revenue guidance ($9.2B–$9.4B) missed the consensus — likely the main source of selling pressure despite the beat. Q4 and Full-Year 2025 Results
• Negative Sentiment: Execution/expansion concerns: coverage noting the Promethos exit and mixed longer-term returns raises questions about the expansion play and valuation, which could weigh on sentiment until guidance trends improve. Promethos Exit Tests Confidence In Sprouts Expansion And Valuation Story
• Negative Sentiment: Valuation debate: recent pieces checking valuation after mixed returns may keep some investors cautious given the gap between past highs and current price levels. Sprouts Valuation Check

Analyst Ratings Changes

SFM has been the topic of a number of recent research reports. JPMorgan Chase & Co. dropped their price target on Sprouts Farmers Market from $124.00 to $91.00 and set a “neutral” rating for the company in a report on Thursday, October 30th. UBS Group dropped their target price on Sprouts Farmers Market from $108.00 to $75.00 and set a “neutral” rating for the company in a report on Wednesday. Roth Mkm restated a “neutral” rating and issued a $91.00 price target on shares of Sprouts Farmers Market in a research note on Thursday, October 30th. Bank of America lowered their price target on shares of Sprouts Farmers Market from $200.00 to $160.00 and set a “buy” rating on the stock in a research report on Thursday, October 23rd. Finally, The Goldman Sachs Group dropped their price objective on shares of Sprouts Farmers Market from $152.00 to $130.00 and set a “buy” rating for the company in a research note on Wednesday, February 4th. Eight equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. According to MarketBeat.com, Sprouts Farmers Market has a consensus rating of “Moderate Buy” and a consensus price target of $121.54.

Insider Activity at Sprouts Farmers Market

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

Hedge Funds Weigh In On Sprouts Farmers Market

Several institutional investors and hedge funds have recently modified their holdings of SFM. Newbridge Financial Services Group Inc. purchased a new position in Sprouts Farmers Market in the second quarter worth about $29,000. FWL Investment Management LLC boosted its holdings in shares of Sprouts Farmers Market by 72.5% in the third quarter. FWL Investment Management LLC now owns 426 shares of the company’s stock worth $46,000 after buying an additional 179 shares during the last quarter. Empowered Funds LLC bought a new stake in Sprouts Farmers Market during the fourth quarter valued at approximately $69,000. Parkside Financial Bank & Trust grew its position in Sprouts Farmers Market by 542.5% during the fourth quarter. Parkside Financial Bank & Trust now owns 861 shares of the company’s stock valued at $69,000 after buying an additional 727 shares during the period. Finally, Ossiam purchased a new stake in Sprouts Farmers Market during the third quarter valued at approximately $74,000.

Sprouts Farmers Market Company Profile

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.