Sprouts' revenue growth has moderated from 18.7% in Q1 2025 to roughly 4.7% in Q3 2026, and operating margin compressed from 10.2% to 6.6% over the same span, suggesting the expansion phase is maturing.
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue growth has decelerated from 18.7% in Q1 2025 to 4.7% in Q3 2026 while operating margin compressed from 10.2% to 6.6%, suggesting weakening operating leverage despite a stable 38.2% gross margin.
Sprouts plans to enter the Midwest and Northeast starting in 2027, unlocking long-term unit growth potential.
Sprouts offers a variety of fresh, natural, and organic food products, catering to consumers seeking healthier eating habits.
Sprouts stands out with affordable, healthy products, appealing to cost-conscious consumers looking for better food choices.
Trailing total returns as of 11/7/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q4 2026Latest Oct 28, 2026 | $1.21-1.6% vs $1.23 | $2.3B-1.2% vs $2.3B |
Q3 2026 Jul 29, 2026 | $1.37+2.2% vs $1.34 | $2.3B+0.1% vs $2.3B |
Q2 2026 Apr 29, 2026 | $1.71+2.4% vs $1.67 | $2.3B+0.3% vs $2.3B |
Q1 2026 Feb 19, 2026 | $0.92+3.4% vs $0.89 | $2.1B-0.2% vs $2.2B |
Sprouts Farmers Market, Inc. plummeted after the company reported a double miss for Q3. Comparable store sales are trending downward, ultimately also questioning SFM's margin level. The Q4 guidance suggests very sharp weakness ahead. Competitive intensity seems to be eroding SFM's earnings power.
Sprouts Farmers Market has shifted from a momentum play to a value stock amid macro headwinds and food safety outbreaks. Q3 earnings revealed declining comp sales and a significant reduction in full-year guidance, triggering a ~20% post-earnings stock drop. I am downgrading SFM to a neutral rating, citing a lack of near-term catalysts and a balanced risk/reward profile.
New store openings and supply chain control offer a path to restore margins that pricing cuts alone cannot achieve.
Sprouts Farmers Market's Q3 earnings and sales miss estimates as weak comps and margin pressure weigh on results, prompting a lower 2026 outlook.
Benchmark SFM against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Sprouts Farmers Market, Inc. (SFM)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $49.10 | $4.58B | 9.27 | 14.08% | 5.45% | 33.82% | — | |
| $28.61 | $659.2M | 13.97 | 7.19% | 3.55% | 21.11% | 1.65% | |
| $135.30 | $149.47B | 24.91 | 7.12% | 9.73% | 59.77% | 1.21% | |
| $67.70 | $41.74B | 37.94 | 0.35% | 0.73% | 17.15% | 2% | |
| $12.79 | $6.26B | -121.69 | 3.46% | -0.06% | -2.78% | 4.61% | |
| $125.52 | $1T | 45.36 | 4.73% | 3% | 21.32% | 0.75% |
Sprouts Farmers Market, Inc. (SFM) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Verify the primary filings, follow material updates, and answer the remaining questions.
Sprouts Farmers Market, Inc. (SFM) SEC filings — annual & quarterly reports (10-K, 10-Q)
Oct 28, 2026·SEC
Oct 14, 2026·SEC
Jul 29, 2026·SEC
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Sprouts Farmers Market, Inc. (SFM) stock FAQ — growth, dividends, profitability & financials explained
Sprouts Farmers Market, Inc. (SFM) reported $9.11B in revenue over the trailing twelve months. Revenue was $8.81B in fiscal year 2025. That is 696% more than the $1.11B of fiscal year 2011.
Sprouts Farmers Market, Inc. (SFM) grew revenue by 5.3% over the trailing twelve months, compared with the twelve months before.
Yes. Sprouts Farmers Market, Inc. (SFM) earned $496.2M in net income over the trailing twelve months (a 5.4% net margin).
Sprouts Farmers Market, Inc. (SFM) had a return on equity (ROE) of 33.8% over the trailing twelve months. That is well above the market's typical 10-15%.
Sprouts Farmers Market, Inc. (SFM) generated $335.6M in free cash flow over the trailing twelve months.
