Sprouts Reports Q3 Net Income of $113.4 Million and Sets Fourth-Quarter Outlook

Sprouts Farmers Market (Nasdaq: SFM) reported third-quarter 2026 results in an 8-K accepted Wednesday, Oct. 28, 2026, at 4:04 p.m. ET. The filing attaches a press release, two investor presentations and the company's outlook for the fourth quarter and full year.

Sales rose while profit slipped. Net sales for the 13 weeks ended Sept. 27 totaled $2.3 billion, up 5% from a year earlier. Comparable store sales fell 0.9%. Net income was $113.4 million, down from $120.1 million, and diluted earnings per share were $1.21, compared with $1.22 in the same quarter of 2025. For scale, fiscal 2025 revenue was $8.81 billion, so the quarter's sales equal about a quarter of a typical year.

Margins and cash in the quarter

Gross profit was $880.8 million, a gross margin of 38.2% versus 38.7% a year earlier. Income from operations was $152.8 million, compared with $157.4 million. The company repurchased 1.1 million shares for $89 million, excluding excise tax.

Sprouts ended the quarter with $229 million in cash and an undrawn $600 million revolving credit facility. Year to date, operating cash flow was $555 million, and capital expenditures net of landlord reimbursement were $275 million.

The press release attributes part of the quarter to a challenging consumer environment and a cyclospora disruption. Chief Executive Jack Sinclair said the company is increasing investments in affordability and customer engagement. The company opened a record 15 new stores in the quarter, bringing its count to 504 stores in 25 states.

Fourth-quarter and full-year outlook

For the fourth quarter, on a 13-week basis, Sprouts expects comparable store sales to decline 2.0% to 4.0%, and diluted EPS of $0.47 to $0.51.

Fiscal 2026 will have 53 weeks, with the extra week falling in the fourth quarter. The company estimates the extra week adds about $190 million in sales, $20 million in income before interest and taxes, and $0.16 in diluted EPS.

On a 52-week basis, the full-year outlook calls for net sales growth of about 4.3%, comparable store sales down about 1.7%, EBIT of about $605 million, and diluted EPS of about $4.80. The company also expects 42 net new stores and capital expenditures net of landlord reimbursements of about $310 million.

What happens next

Sprouts will hold an earnings conference call at 5:00 p.m. ET on Oct. 28, 2026, where executives will discuss the quarter further. A webcast replay is expected at about 8:00 p.m. ET that day. The company said its investor presentation may be updated through later filings. It also said it does not intend to update its forward-looking statements except as required by law.

The company did not say how much of the fourth-quarter comparable-sales outlook it attributes to the cyclospora disruption.