Loblaw Companies (TSE:L) Posts Earnings Results

Loblaw Companies (TSE:L) announced its quarterly earnings results on Wednesday. The company reported C$0.67 earnings per share (EPS) for the quarter, FiscalAI reports. The company had revenue of C$15.70 billion for the quarter. Loblaw Companies had a net margin of 3.71% and a return on equity of 19.90%.

Here are the key takeaways from Loblaw Companies’ conference call:

• Strong quarter and full‑year results: Q4 (12‑week) revenue rose 3.5% to CAD 15.5B, adjusted EBITDA increased 4.8% to CAD 1.8B and adjusted diluted EPS grew 10.9%; full‑year revenue was CAD 63.7B and the company repurchased CAD 1.9B of shares in 2025.
• Aggressive store growth and format mix: Loblaw opened 48 hard‑discount stores in 2025 (15 in Q4), added 1.5% grocery and 2.1% drug square footage, and plans roughly ~70 new store openings in 2026 with continued focus on discount and Shoppers expansion.
• PC Financial sale to EQ Bank creates timing noise: The bank’s results are now shown as discontinued operations, the transaction is expected to close later in 2026 (impacting near‑term comparatives), and post‑close Loblaw will hold a proportional share of EQB profits while aiming for increased credit‑card issuance to boost loyalty.
• E‑commerce and AI becoming profitable levers: Digital sales exceeded CAD 4.5B with Q4 digital growth of 19.6%, third‑party delivery has improved online economics (no longer dilutive), and partnerships with OpenAI/Google plus internal AI tools are being deployed to enhance customer experience and operational efficiency.
• Healthcare and pharmacy momentum: Pharmacy and healthcare services same‑store sales rose 5.6%, the company opened its target of 250 in‑store clinics, and Lifemark is expected to deliver about CAD 100M of EBITDA this year, boosting higher‑margin growth avenues.

Loblaw Companies Stock Up 0.5%

Shares of TSE:L opened at C$64.11 on Friday. The firm has a market capitalization of C$75.73 billion, a PE ratio of 31.31, a price-to-earnings-growth ratio of 3.23 and a beta of 0.30. The company has a debt-to-equity ratio of 166.11, a quick ratio of 0.68 and a current ratio of 1.29. Loblaw Companies has a 52-week low of C$45.47 and a 52-week high of C$69.59. The firm has a fifty day moving average of C$63.78 and a 200 day moving average of C$66.98.

Loblaw Companies Cuts Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, December 30th. Investors of record on Tuesday, December 30th were given a $0.1411 dividend. The ex-dividend date was Monday, December 15th. This represents a $0.56 annualized dividend and a yield of 0.9%. Loblaw Companies’s payout ratio is 26.31%.

Key Headlines Impacting Loblaw Companies

Here are the key news stories impacting Loblaw Companies this week:

• Positive Sentiment: Analysts at Desjardins raised their price target to C$70 and maintain a “buy” rating, signaling ~9.6% upside from recent levels. BayStreet.CA
• Positive Sentiment: Scotiabank also raised its target to C$70 and kept an “outperform” call, reinforcing analyst confidence in near-term upside. BayStreet.CA
• Positive Sentiment: Q4 results showed revenue of C$15.70B and C$0.67 EPS, with a 3.71% net margin and 19.9% ROE — headline metrics investors parse as evidence of resilient demand and margin recovery. Press Release
• Positive Sentiment: Management commentary and earnings-call highlights emphasized strong retail revenue growth (retail revenue surpassed $16B in 2025) and value-seeking shopper trends that lifted traffic. Yahoo Finance
• Positive Sentiment: Company announced plans to open ~70 new stores in 2026 focusing on pharmacies and a hard-discount model — a growth/market-share initiative investors typically view as future revenue drivers. Retail Insider
• Neutral Sentiment: Several brokers (TD Securities, BMO Capital Markets) have published bullish research notes and forecasts supporting price appreciation — supportive but already partly reflected by other target raises. American Banking News
• Neutral Sentiment: Full earnings call transcript and coverage are available for deeper read-throughs of guidance, margin drivers and cost initiatives; these details will influence near-term analyst revisions. Seeking Alpha
• Neutral Sentiment: Loblaw announced a partnership with Ducks Unlimited Canada for sustainable agriculture — positive for ESG positioning but unlikely to move near-term earnings. Retail Insider (Sustainability)
• Negative Sentiment: Some consumer backlash surfaced over proposed store redesigns at Loblaw-owned banners (social media/press critiques) — reputational noise that could complicate rollouts or slow customer acceptance in the short term. BlogTO

Analysts Set New Price Targets

A number of brokerages have recently commented on L. Canadian Imperial Bank of Commerce increased their price target on Loblaw Companies from C$58.50 to C$67.00 in a research note on Thursday, November 13th. BMO Capital Markets upped their target price on Loblaw Companies from C$63.00 to C$68.00 and gave the stock a “market perform” rating in a report on Monday. Desjardins increased their target price on Loblaw Companies from C$67.00 to C$70.00 and gave the company a “buy” rating in a research report on Thursday. National Bank Financial lifted their price target on Loblaw Companies from C$62.00 to C$66.00 and gave the company an “outperform” rating in a research note on Wednesday, January 28th. Finally, TD Securities boosted their price target on Loblaw Companies from C$65.00 to C$75.00 and gave the stock a “buy” rating in a report on Monday. Six equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of C$92.63.

About Loblaw Companies

Loblaw is one of Canada’s largest grocery, pharmacy, and general merchandise retailers, operating the most expansive store footprint in Ontario and maintaining sizable presences in provinces like Quebec and British Columbia. Key grocery banners include Loblaw, No Frills, and Maxi, while its pharmaceutical operations are the product of its 2014 acquisition of Shoppers Drug Mart. The firm carries a robust private-label assortment, with top sellers like President’s Choice and No Name. In addition to its retail operations, Loblaw oversees a financial-services business, which provides credit card services and guaranteed investment certificates, and also operates its PC Optimum loyalty program.