Zacks Research Issues Positive Outlook for SFM Earnings

Key Points

• Zacks Research raised its earnings outlook for Sprouts Farmers Market, increasing its Q3 2026 EPS estimate to $1.32 from $1.29 and lifting several forward-year forecasts, including FY2026 at $5.57 per share.
• Sprouts recently beat quarterly expectations, reporting $1.71 EPS on revenue of $2.33 billion, both slightly ahead of consensus estimates, while also issuing FY2026 guidance of $5.32-$5.48 EPS.
• Wall Street remains divided on the stock, with analysts split between Buy and Hold ratings and a consensus rating of “Hold,” alongside an average price target of $96.08.

Sprouts Farmers Market, Inc. (NASDAQ:SFM - Free Report) - Investment analysts at Zacks Research lifted their Q3 2026 EPS estimates for shares of Sprouts Farmers Market in a note issued to investors on Wednesday, May 13th. Zacks Research analyst Team now anticipates that the company will earn $1.32 per share for the quarter, up from their prior estimate of $1.29. The consensus estimate for Sprouts Farmers Market's current full-year earnings is $5.57 per share. Zacks Research also issued estimates for Sprouts Farmers Market's Q4 2026 earnings at $1.20 EPS, FY2026 earnings at $5.57 EPS, Q1 2027 earnings at $1.86 EPS, Q3 2027 earnings at $1.36 EPS and FY2027 earnings at $5.73 EPS.

A number of other research firms also recently weighed in on SFM. Wall Street Zen downgraded Sprouts Farmers Market from a "buy" rating to a "hold" rating in a report on Saturday, February 21st. BMO Capital Markets reaffirmed a "market perform" rating and set a $70.00 price target on shares of Sprouts Farmers Market in a research report on Friday, February 20th. The Goldman Sachs Group set a $111.00 price objective on shares of Sprouts Farmers Market in a research note on Friday, February 20th. Wells Fargo & Company cut their price objective on shares of Sprouts Farmers Market from $110.00 to $100.00 and set an "overweight" rating for the company in a report on Friday, February 20th. Finally, UBS Group decreased their target price on shares of Sprouts Farmers Market from $108.00 to $75.00 and set a "neutral" rating on the stock in a research report on Wednesday, February 18th. Seven research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and an average price target of $96.08.

Sprouts Farmers Market Stock Performance

SFM opened at $86.96 on Friday. The company has a debt-to-equity ratio of 0.07, a current ratio of 0.92 and a quick ratio of 0.42. The business has a fifty day simple moving average of $77.88 and a 200 day simple moving average of $77.95. Sprouts Farmers Market has a 1 year low of $64.75 and a 1 year high of $182.00. The company has a market capitalization of $8.18 billion, a PE ratio of 16.72, a price-to-earnings-growth ratio of 1.87 and a beta of 0.68.

Sprouts Farmers Market (NASDAQ:SFM - Get Free Report) last posted its earnings results on Wednesday, April 29th. The company reported $1.71 EPS for the quarter, beating the consensus estimate of $1.67 by $0.04. The company had revenue of $2.33 billion for the quarter, compared to the consensus estimate of $2.32 billion. Sprouts Farmers Market had a return on equity of 36.06% and a net margin of 5.70%.The firm's revenue for the quarter was up 4.1% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.81 earnings per share. Sprouts Farmers Market has set its FY 2026 guidance at 5.320-5.480 EPS and its Q2 2026 guidance at 1.320-1.360 EPS.

Insider Activity at Sprouts Farmers Market

In other Sprouts Farmers Market news, SVP Kim Coffin sold 313 shares of the stock in a transaction dated Friday, March 20th. The shares were sold at an average price of $83.97, for a total transaction of $26,282.61. Following the sale, the senior vice president directly owned 23,332 shares in the company, valued at $1,959,188.04. This represents a 1.32% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Brandon F. Lombardi sold 406 shares of the firm's stock in a transaction dated Friday, May 1st. The shares were sold at an average price of $82.04, for a total transaction of $33,308.24. Following the completion of the transaction, the insider directly owned 6,801 shares in the company, valued at approximately $557,954.04. This represents a 5.63% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 130,156 shares of company stock worth $10,600,146 in the last quarter. 1.30% of the stock is currently owned by corporate insiders.

Institutional Trading of Sprouts Farmers Market

Several large investors have recently made changes to their positions in SFM. Barlow Wealth Partners Inc. bought a new stake in shares of Sprouts Farmers Market in the 3rd quarter valued at $16,724,000. Federated Hermes Inc. raised its stake in Sprouts Farmers Market by 89.8% during the 3rd quarter. Federated Hermes Inc. now owns 928,668 shares of the company's stock worth $101,039,000 after buying an additional 439,425 shares during the period. Campbell & CO Investment Adviser LLC bought a new position in Sprouts Farmers Market in the third quarter worth approximately $9,339,000. Teacher Retirement System of Texas grew its stake in Sprouts Farmers Market by 89.6% in the third quarter. Teacher Retirement System of Texas now owns 69,062 shares of the company's stock valued at $7,514,000 after acquiring an additional 32,635 shares during the period. Finally, Dynamic Technology Lab Private Ltd raised its position in shares of Sprouts Farmers Market by 171.9% during the third quarter. Dynamic Technology Lab Private Ltd now owns 51,310 shares of the company's stock worth $5,583,000 after purchasing an additional 32,440 shares during the period.

Trending Headlines about Sprouts Farmers Market

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

• Positive Sentiment: Zacks Research raised its earnings outlook for several periods, including FY2026 to $5.57 per share, Q1 2027 to $1.86, Q3 2027 to $1.36, FY2027 to $5.73, and FY2028 to $6.11. Higher forward EPS estimates can support the stock by reinforcing expectations for continued profit growth.
• Positive Sentiment: The firm also lifted its Q3 2026 estimate to $1.32 per share and its Q1 2028 estimate to $1.98, suggesting analysts still see improving earnings power over time.
• Neutral Sentiment: Sprouts recently reported quarterly results that topped expectations, with earnings of $1.71 per share versus $1.67 expected and revenue of $2.33 billion versus $2.32 billion expected, which helped confirm the company’s fundamentals after its latest earnings report.
• Neutral Sentiment: Shares also saw unusually heavy call option buying, with traders purchasing 21,952 call contracts, far above normal volume. That can signal bullish sentiment, but it may also reflect short-term speculation rather than a durable fundamental move.
• Negative Sentiment: Not all revisions were positive: Zacks trimmed some near-term estimates, including Q2 2026, Q4 2026, and Q2/Q4 2027 by small amounts. Those minor cuts may be weighing on sentiment by highlighting some caution around upcoming quarters.

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.

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