Grocery Outlet (NASDAQ:GO) Updates FY 2026 Earnings Guidance

Key Points

• Grocery Outlet updated FY 2026 guidance, projecting EPS of $0.45 to $0.55 versus Wall Street’s $0.47 estimate. It also guided revenue to $4.6 billion to $4.7 billion, roughly in line with consensus.
• The company’s latest quarterly results came in slightly ahead of expectations, with EPS of $0.05 versus the $0.02 estimate and revenue of $1.17 billion versus $1.15 billion expected. Despite the beat, the stock traded lower on the day.
• Analyst sentiment remains cautious, with multiple firms cutting price targets and the stock carrying a consensus “Reduce” rating. Insider activity was mixed, though CEO Jason J. N. Potter made a significant stock purchase in March.

Grocery Outlet (NASDAQ:GO - Get Free Report) issued an update on its FY 2026 earnings guidance on Wednesday morning. The company provided EPS guidance of 0.450-0.550 for the period, compared to the consensus EPS estimate of 0.470. The company issued revenue guidance of $4.6 billion-$4.7 billion, compared to the consensus revenue estimate of $4.7 billion.

Wall Street Analyst Weigh In

GO has been the subject of several research reports. DA Davidson set a $8.00 price objective on shares of Grocery Outlet in a research note on Thursday, March 5th. Morgan Stanley reduced their target price on shares of Grocery Outlet from $11.00 to $7.00 and set an "equal weight" rating on the stock in a report on Thursday, March 5th. Weiss Ratings raised shares of Grocery Outlet from a "sell (d-)" rating to a "sell (d)" rating in a research report on Friday, May 1st. TD Cowen reiterated a "hold" rating on shares of Grocery Outlet in a research note on Thursday, March 5th. Finally, Jefferies Financial Group reaffirmed a "hold" rating and issued a $7.00 price objective (down from $18.00) on shares of Grocery Outlet in a report on Thursday, March 5th. Eleven analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Reduce" and a consensus price target of $10.68.

Grocery Outlet Trading Down 2.8%

Shares of NASDAQ GO traded down $0.22 during trading on Wednesday, hitting $7.74. 5,129,866 shares of the company traded hands, compared to its average volume of 3,358,351. Grocery Outlet has a 1 year low of $5.66 and a 1 year high of $19.41. The company has a 50-day moving average price of $7.19 and a 200-day moving average price of $9.49. The company has a quick ratio of 0.32, a current ratio of 1.37 and a debt-to-equity ratio of 0.49. The firm has a market capitalization of $765.64 million, a P/E ratio of -3.38, a P/E/G ratio of 2.30 and a beta of 0.66.

Grocery Outlet (NASDAQ:GO - Get Free Report) last issued its earnings results on Wednesday, May 13th. The company reported $0.05 earnings per share for the quarter, topping the consensus estimate of $0.02 by $0.03. The company had revenue of $1.17 billion during the quarter, compared to the consensus estimate of $1.15 billion. Grocery Outlet had a positive return on equity of 5.93% and a negative net margin of 4.80%.Grocery Outlet has set its FY 2026 guidance at 0.450-0.550 EPS. On average, equities analysts predict that Grocery Outlet will post 0.37 EPS for the current year.

Insider Activity at Grocery Outlet

In other news, CEO Jason J. N. Potter purchased 110,252 shares of the firm's stock in a transaction on Monday, March 23rd. The stock was purchased at an average cost of $6.35 per share, with a total value of $700,100.20. Following the purchase, the chief executive officer owned 684,618 shares in the company, valued at $4,347,324.30. This trade represents a 19.20% increase in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP Steven K. Wilson sold 4,721 shares of the company's stock in a transaction on Monday, March 16th. The shares were sold at an average price of $6.06, for a total value of $28,609.26. Following the completion of the transaction, the executive vice president directly owned 120,171 shares in the company, valued at $728,236.26. This represents a 3.78% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have acquired 899,905 shares of company stock valued at $5,396,307 and have sold 89,493 shares valued at $524,431. 4.50% of the stock is currently owned by corporate insiders.

More Grocery Outlet News

Here are the key news stories impacting Grocery Outlet this week:

• Neutral Sentiment: Investors are waiting for Grocery Outlet’s Q1 2026 earnings update, with analysts looking for clues on whether value-focused shopping trends are helping sales and whether promotions and store closures are still pressuring margins. Grocery Outlet Holding Corp Q1 2026: Everything You Need To Know Ahead Of Earnings
• Neutral Sentiment: Several firms reiterated that shareholders who bought GO between August 5, 2025 and March 4, 2026 may have claims in the pending class action, with the lead-plaintiff deadline approaching on May 15. The recurring legal reminders are keeping the stock in focus, even though they do not change fundamentals directly. Deadline Alert article
• Negative Sentiment: The lawsuits allege Grocery Outlet expanded too quickly, relied on aggressive store growth to support results, and may need additional store closures and asset write-downs to complete its restructuring plan. That narrative can pressure the shares because it raises concerns about the sustainability of growth and profitability. Holzer & Holzer lawsuit reminder

Institutional Trading of Grocery Outlet

Hedge funds have recently modified their holdings of the company. T. Rowe Price Investment Management Inc. boosted its stake in shares of Grocery Outlet by 54.0% in the 4th quarter. T. Rowe Price Investment Management Inc. now owns 15,763,945 shares of the company's stock valued at $159,216,000 after purchasing an additional 5,528,722 shares in the last quarter. Invesco Ltd. grew its holdings in shares of Grocery Outlet by 106.5% in the 4th quarter. Invesco Ltd. now owns 1,914,410 shares of the company's stock valued at $19,336,000 after buying an additional 987,367 shares during the period. Vident Advisory LLC increased its stake in Grocery Outlet by 19.9% during the 4th quarter. Vident Advisory LLC now owns 16,965 shares of the company's stock worth $171,000 after purchasing an additional 2,817 shares in the last quarter. Mackenzie Financial Corp raised its stake in shares of Grocery Outlet by 0.5% in the 4th quarter. Mackenzie Financial Corp now owns 4,709,721 shares of the company's stock valued at $47,757,000 after purchasing an additional 22,418 shares during the period. Finally, Empowered Funds LLC increased its stake in Grocery Outlet by 4.6% in the 4th quarter. Empowered Funds LLC now owns 435,665 shares of the company's stock valued at $4,400,000 after buying an additional 19,183 shares during the last quarter. Institutional investors own 99.87% of the company's stock.

Grocery Outlet Company Profile

Grocery Outlet Holding Corp. NASDAQ: GO is a specialty discount retailer that offers consumers deeply discounted groceries by purchasing excess inventory, closeouts, and overstocks from manufacturers and distributors. Headquartered in Emeryville, California, the company operates two primary banners—Grocery Outlet and Fresh2Go—with a combined footprint of more than 400 stores. Its product assortment spans fresh produce, meat, dairy, bakery items, household staples, natural and organic offerings, and select specialty products, all sold at significant markdowns compared to conventional supermarkets.

The company's unique buying model enables it to source inventory through opportunistic purchases of surplus freight, discontinued items, and closeout deals, which it then passes on as savings to its customers.

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