Sprouts Farmers Market (NASDAQ:SFM) Issues Quarterly Earnings Results

Sprouts Farmers Market (NASDAQ:SFM) issued its earnings results on Wednesday. The company reported $1.37 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.35 by $0.02, FiscalAI reports. Sprouts Farmers Market had a net margin of 5.70% and a return on equity of 36.06%. The company had revenue of $2.33 billion during the quarter, compared to analysts’ expectations of $2.32 billion. During the same period last year, the company posted $1.35 earnings per share. The firm’s quarterly revenue was up 4.7% compared to the same quarter last year. Sprouts Farmers Market updated its Q3 2026 guidance to 1.200-1.240 EPS and its FY 2026 guidance to 5.320-5.400 EPS.

Here are the key takeaways from Sprouts Farmers Market’s conference call:

• Second-quarter sales rose 5% to $2.3 billion, driven by strong new-store performance, while comparable sales declined 1%. Diluted EPS increased 1% to $1.37, and e-commerce sales grew more than 12% to approximately 16% of total sales.
• The consumer backdrop remains pressured by inflation, elevated fuel costs, and affordability concerns, with lower-engaged and lower-income customers reducing trip frequency and basket units. Affordability tests improved units but produced a slower-than-expected traffic response.
• Sprouts maintained its full-year outlook on a 52-week basis, including sales growth of 5.5%-6.5%, comps of negative 0.5% to positive 0.5%, EBIT of $675 million-$685 million, and EPS of $5.32-$5.40. Third-quarter EBIT margin is expected to decline about 50 basis points due to fixed-cost deleverage, fuel costs, and increased store openings.
• New stores continue to outperform expectations, with 42 net openings now planned for 2026 and more than 110 executed leases in the pipeline. Recent store vintages are comping positively, supporting management’s confidence in long-term expansion.
• Innovation, Sprouts brand products, e-commerce, and supply-chain initiatives remain areas of strength, while nearly 85% of stores now receive fresh meat through Sprouts distribution centers. The company also generated $369 million of year-to-date operating cash flow and repurchased $210 million of stock through the second quarter.

Sprouts Farmers Market Trading Up 12.1%

SFM traded up $9.55 during trading on Thursday, hitting $88.71. The company’s stock had a trading volume of 1,651,868 shares, compared to its average volume of 2,489,537. The firm’s 50 day moving average price is $81.76 and its 200-day moving average price is $77.95. The stock has a market cap of $8.34 billion, a PE ratio of 17.10, a PEG ratio of 2.05 and a beta of 0.67. Sprouts Farmers Market has a twelve month low of $64.75 and a twelve month high of $160.49. The company has a debt-to-equity ratio of 0.07, a current ratio of 0.92 and a quick ratio of 0.42.

Sprouts Farmers Market News Roundup

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

• Positive Sentiment: JPMorgan upgraded SFM to “overweight” from “neutral” and raised its price target to $103 from $80, signaling greater confidence in Sprouts’ growth outlook and implying substantial upside from recent trading levels. Benzinga analyst upgrade report
• Positive Sentiment: Second-quarter results exceeded expectations. Sprouts reported adjusted earnings of $1.37 per share versus the $1.35 consensus estimate, while revenue reached $2.33 billion compared with expectations of $2.32 billion. Revenue increased 4.7% year over year, and EPS matched the prior-year quarter despite a challenging consumer environment. Sprouts Farmers Market earnings report
• Neutral Sentiment: The earnings-call transcript and presentation highlighted the company’s quarterly performance, with investors focused on health-oriented consumer demand, loyalty growth, traffic trends and margin management. Q2 2026 earnings call transcript
• Negative Sentiment: Forward guidance was below Wall Street expectations. Sprouts forecast third-quarter EPS of $1.20–$1.24, below the $1.30 consensus, and full-year EPS of $5.32–$5.40 versus the $5.57 consensus. Full-year revenue guidance of $9.3–$9.4 billion also trailed the $9.5 billion estimate, raising concerns about near-term growth and profitability. Sprouts Farmers Q2 earnings and guidance report

Insiders Place Their Bets

In other news, COO Nicholas Konat sold 12,538 shares of the stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $87.90, for a total value of $1,102,090.20. Following the completion of the sale, the chief operating officer owned 66,119 shares of the company’s stock, valued at $5,811,860.10. This represents a 15.94% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Jack Sinclair sold 10,788 shares of Sprouts Farmers Market stock in a transaction on Tuesday, July 7th. The shares were sold at an average price of $84.87, for a total transaction of $915,577.56. Following the transaction, the chief executive officer owned 269,980 shares in the company, valued at $22,913,202.60. The trade was a 3.84% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 45,310 shares of company stock worth $3,873,881 over the last ninety days. 1.30% of the stock is owned by company insiders.

Institutional Investors Weigh In On Sprouts Farmers Market

Institutional investors and hedge funds have recently modified their holdings of the stock. Mercer Global Advisors Inc. ADV raised its holdings in shares of Sprouts Farmers Market by 57.4% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 8,535 shares of the company’s stock valued at $655,000 after buying an additional 3,111 shares during the period. Summit Global Investments boosted its holdings in Sprouts Farmers Market by 5.2% in the 4th quarter. Summit Global Investments now owns 7,802 shares of the company’s stock worth $622,000 after acquiring an additional 384 shares during the period. Beacon Pointe Advisors LLC grew its position in Sprouts Farmers Market by 33.2% in the fourth quarter. Beacon Pointe Advisors LLC now owns 2,650 shares of the company’s stock valued at $211,000 after acquiring an additional 660 shares in the last quarter. State of Tennessee Department of Treasury grew its position in Sprouts Farmers Market by 6.1% in the fourth quarter. State of Tennessee Department of Treasury now owns 45,861 shares of the company’s stock valued at $3,654,000 after acquiring an additional 2,631 shares in the last quarter. Finally, Mackenzie Financial Corp raised its stake in shares of Sprouts Farmers Market by 167.7% during the fourth quarter. Mackenzie Financial Corp now owns 17,163 shares of the company’s stock valued at $1,373,000 after purchasing an additional 10,751 shares during the period.

Analyst Ratings Changes

Several analysts have weighed in on the company. Royal Bank Of Canada reissued an “outperform” rating and issued a $114.00 target price on shares of Sprouts Farmers Market in a report on Monday, June 1st. Evercore restated an “outperform” rating on shares of Sprouts Farmers Market in a research report on Monday. Deutsche Bank Aktiengesellschaft reissued a “hold” rating on shares of Sprouts Farmers Market in a research note on Thursday. Melius Research lowered Sprouts Farmers Market from a “hold” rating to a “sell” rating and set a $70.00 target price on the stock. in a research note on Monday, April 6th. Finally, JPMorgan Chase & Co. upgraded Sprouts Farmers Market from a “neutral” rating to an “overweight” rating and increased their target price for the company from $80.00 to $103.00 in a report on Thursday. Eight analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $98.38.

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.