Sprouts Farmers Market (SFM) Q3 2026 earnings summary

Executive summary

• Q3 net sales rose 5% YoY to $2,304.7M, led by new-store sales, while comparable sales fell 0.9% amid softer traffic, measured spending and a cyclospora disruption.

• Diluted EPS was $1.21 vs. $1.22 a year earlier; management cited the need for stronger execution, affordability and customer engagement.

• 504 stores operated across 25 states at quarter-end; strategy priorities include ~10% annual unit growth, affordability, supply-chain and technology investment, and personalization.

Financial highlights

• Q3 net sales were $2,304.7M vs. $2,200.4M; gross profit was $880.8M vs. $851.1M, and operating income was $152.8M vs. $157.4M.

• Net income was $113.4M vs. $120.1M; diluted EPS was $1.21 vs. $1.22, with EPS down 1% excluding excise tax.

• 9M net sales increased 5% to $6,960M; operating income was $542.3M vs. $563.1M, net income was $406.3M vs. $433.8M, and diluted EPS was $4.30 vs. $4.38.

Outlook and guidance

• FY26 52-week outlook: net sales growth ~4.3%, comp sales ~-1.7%, EBIT ~$605M, diluted EPS ~$4.80 and 42 net new stores.

• Q4 outlook: comp sales down 2% to 4% and diluted EPS of $0.47 to $0.51 on a 13-week basis.

• FY26 is a 53-week year; the extra week is expected to add $190M in sales, $20M in EBIT and $0.16 in diluted EPS.

• FY26 capex is projected at ~$310M net of landlord reimbursements; affordability, technology and supply-chain investment are expected to pressure near-term margins.

• 2027 guidance will follow assessment of holiday and January affordability actions; 5% EBIT margin is a hoped-for floor, not formal guidance.