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

Sprouts Farmers Market (NASDAQ:SFM) released its earnings results 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 company had revenue of $2.15 billion for the quarter, compared to analysts’ expectations of $2.15 billion. During the same quarter last year, the business earned $0.79 EPS. The firm’s revenue was up 7.6% compared to the same quarter last year. 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 Stock Down 3.1%

Sprouts Farmers Market stock traded down $2.09 during trading on Friday, reaching $65.76. The stock had a trading volume of 1,615,773 shares, compared to its average volume of 2,905,677. Sprouts Farmers Market has a 52-week low of $64.75 and a 52-week high of $182.00. The business has a 50 day moving average price of $74.67 and a 200 day moving average price of $98.98. 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 $6.40 billion, a PE ratio of 12.74, a P/E/G ratio of 0.68 and a beta of 0.75.

Insider Activity at Sprouts Farmers Market

In related news, CMO Alisa Gmelich sold 3,161 shares of the firm’s stock in a transaction that occurred on Friday, December 12th. The shares were sold at an average price of $79.39, for a total value of $250,951.79. Following the transaction, the chief marketing officer owned 5,552 shares in the company, valued at approximately $440,773.28. This trade represents a 36.28% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, insider John Scott Neal sold 17,471 shares of the firm’s stock in a transaction on 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 transaction, the insider directly owned 14,178 shares in the company, valued at approximately $1,207,965.60. This represents a 55.20% decrease in their position. The SEC filing for this sale provides additional information. Company insiders own 1.10% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of SFM. Beacon Pointe Advisors LLC increased its position in shares of Sprouts Farmers Market by 33.2% in the 4th quarter. Beacon Pointe Advisors LLC now owns 2,650 shares of the company’s stock worth $211,000 after purchasing an additional 660 shares during the last quarter. Hilltop Holdings Inc. bought a new position in Sprouts Farmers Market during the 3rd quarter worth approximately $210,000. Quarry LP acquired a new position in shares of Sprouts Farmers Market in the 3rd quarter worth approximately $208,000. Aster Capital Management DIFC Ltd increased its holdings in shares of Sprouts Farmers Market by 20.4% in the 4th quarter. Aster Capital Management DIFC Ltd now owns 2,151 shares of the company’s stock valued at $171,000 after acquiring an additional 364 shares during the last quarter. Finally, UMB Bank n.a. raised its position in shares of Sprouts Farmers Market by 88.7% during the 4th quarter. UMB Bank n.a. now owns 2,123 shares of the company’s stock valued at $169,000 after acquiring an additional 998 shares in the last quarter.

Analyst Ratings Changes

SFM has been the subject of several research analyst reports. Wells Fargo & Company set a $100.00 price target on Sprouts Farmers Market in a report on Friday. Royal Bank Of Canada restated an “outperform” rating and set a $114.00 price objective on shares of Sprouts Farmers Market in a report on Friday. Zacks Research raised shares of Sprouts Farmers Market from a “strong sell” rating to a “hold” rating in a research note on Monday, January 12th. Deutsche Bank Aktiengesellschaft cut shares of Sprouts Farmers Market from a “buy” rating to a “hold” rating and set a $88.00 target price on the stock. in a report on Thursday, January 8th. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of Sprouts Farmers Market in a report on Monday, December 29th. Eight analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $112.23.

Trending Headlines about Sprouts Farmers Market

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

• Positive Sentiment: Q4 beat and healthy sales growth — Sprouts reported $0.92 EPS vs. consensus $0.89 and revenue of $2.15B (+7.6% y/y), with solid margins and ROE that underline operating strength this quarter. MarketBeat Q4 Results
• Positive Sentiment: Institutional buying: billionaire Philippe Laffont has added SFM to his holdings, which can signal activist interest or conviction from a well‑known value investor. MSN: Why Laffont is Buying
• Positive Sentiment: Leadership additions: Sprouts named Don Clark as Chief Merchandising Officer and Mandy Rassi as Chief Customer Officer, with an orderly succession on the merchandising team as the prior CMO retires — a governance/operational positive. BusinessWire: Management Changes
• Neutral Sentiment: Full disclosures available — the earnings call transcript and slide deck provide detail for investors to model comps, margins and category performance. Review the transcript and presentation for guidance drivers. Seeking Alpha Transcript
• Negative Sentiment: Guidance disappointed — SFM lowered Q1 2026 EPS to $1.660–1.700 (consensus ~$1.81) and FY 2026 EPS to $5.280–5.440 (consensus ~$5.68); revenue guidance of $9.2B–$9.4B missed the ~$9.7B Street view. This is the main driver of near‑term downside pressure. BusinessWire: Q4 & FY Results
• Negative Sentiment: Analyst target cut — Bank of America trimmed its price target from $104 to $92 while keeping a “buy” rating, reducing near‑term analyst upside and signaling more conservative expectations. Benzinga: BofA PT Cut
• Negative Sentiment: Technical/valuation context — SFM is trading below its 50‑day and 200‑day moving averages and near its 52‑week low, which can amplify downside as momentum investors and some algos respond to the weaker guidance and target cut. (Background performance: opened at $67.85; 50‑day $74.67; 200‑day $98.98.)

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.