Loblaw Companies (TSE:L) Announces Quarterly Earnings Results

Loblaw Companies (TSE:L) announced its quarterly earnings results on Wednesday. The company reported C$0.67 earnings per share for the quarter, FiscalAI reports. The business had revenue of C$15.70 billion during 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 Down 1.0%

Shares of TSE:L traded down C$0.64 during trading hours on Thursday, reaching C$63.16. The stock had a trading volume of 274,823 shares, compared to its average volume of 1,271,275. Loblaw Companies has a 1 year low of C$45.47 and a 1 year high of C$69.59. The firm’s 50 day moving average is C$63.75 and its 200-day moving average is C$67.00. The stock has a market capitalization of C$74.60 billion, a price-to-earnings ratio of 30.85, a P/E/G 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 Cuts Dividend

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

Loblaw Companies News Roundup

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

• Positive Sentiment: Q4 results showed revenue and profit growth driven by higher store traffic from value-seeking shoppers; strong top-line performance is the primary catalyst for the stock move. Loblaw Companies Ltd (LBLCF) Q4 2025 Earnings Call Highlights
• Positive Sentiment: Detailed earnings coverage and transcript show management emphasizing margin discipline and growth initiatives, giving investors confidence in execution. Q4 2025 Earnings Call Transcript
• Positive Sentiment: Retail revenue for 2025 exceeded C$16 billion, underlining sustained sales momentum across Loblaw’s banners. Loblaw retail revenue surpasses $16 billion in 2025
• Positive Sentiment: Company plans to open ~70 new stores in 2026, focusing on pharmacies and a hard-discount model—this signals an aggressive growth push that could expand market share. Loblaws Plans 70 New Stores in 2026
• Positive Sentiment: Several analyst shops (TD Securities, BMO) issued bullish notes/price-target upgrades after results, supporting near-term upside. TD Securities Analyst Says Stock Price Expected to Rise BMO Capital Markets Forecast
• Neutral Sentiment: Sustainability partnership with Ducks Unlimited Canada may improve ESG credentials long term but is unlikely to move near-term earnings materially. Ducks Unlimited Canada partnership
• Negative Sentiment: Public criticism of proposed store redesigns at Shoppers Drug Mart/No Frills could create short-term reputational noise and political scrutiny in consumer-facing markets. Canadians are roasting proposed glow-ups

Analyst Ratings Changes

A number of research analysts have commented on the company. TD Securities upped their price target on Loblaw Companies from C$65.00 to C$75.00 and gave the stock a “buy” rating in a research note on Monday. Royal Bank Of Canada boosted their price objective on Loblaw Companies from C$68.00 to C$72.00 and gave the company an “outperform” rating in a report on Friday, January 23rd. Desjardins upgraded Loblaw Companies from a “hold” rating to a “buy” rating and raised their target price for the company from C$62.00 to C$67.00 in a report on Thursday, December 4th. Canadian Imperial Bank of Commerce boosted their price target on shares of Loblaw Companies from C$58.50 to C$67.00 in a research note on Thursday, November 13th. Finally, National Bank Financial increased their price target on shares of Loblaw Companies from C$62.00 to C$66.00 and gave the stock an “outperform” rating in a research report on Wednesday, January 28th. Six equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of C$91.63.

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.