| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 80 | 13.9x | 17.8x | Top tier | |
Growth | 59 | 7.2% | 7.1% | Around median | |
Quality | 74 | 14.9% | 4.5% | Top tier | |
Safety | 71 | 2.3x | 2.6x | Top tier | |
Capital Return | 52 | — | 2.12% | Around median | |
Momentum | 26 | -39.7% | 2.9% | Bottom tier | |
Sentiment | 67 | 10 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Sprouts Farmers Market operates a network of grocery stores specializing in healthy, fresh, and organic foods and products associated with specific nutritional attributes, such as seed oil-free products and products rich in fiber and protein and supportive of gut health. The company generates revenue from in-store sales and delivery and pickup channels through Instacart, DoorDash, and Uber Eats, with differentiation based on fresh products, innovation, and the Sprouts brand; in fiscal Q2 2026, private-label products accounted for 26% of sales, while organic products exceeded 30% of sales.
In fiscal Q2 2026, sales reached $2.3 billion, up $105 million or 5% year over year, driven by the performance of new stores despite a 1% decline in comparable-store sales. Gross profit was $900.6 million, and gross margin was 38.7%, down 12 basis points, while net income was $129.2 million and diluted earnings per share were $1.37, up 1% year over year. Earnings before interest and taxes were also $174 million, and selling, general, and administrative expenses faced 30 basis points of pressure as they rose to $683 million.
The sales mix reflects expansion beyond the traditional store; e-commerce grew by more than 12% and accounted for approximately 16% of fiscal Q2 2026 sales, while more than half of dairy and produce sales came from organic items. According to EDGAR data, the twelve-month period included in the 2026 data recorded revenue of $9.0 billion, gross profit of $3.5 billion, and net income of $502.9 million, compared with revenue of $8.8 billion and net income of $523.7 million in fiscal 2025; this indicates revenue growth alongside a decline in net profit from the prior fiscal-year level.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $90, within a range of $82 to $103, with a consensus Buy rating. The average target is approximately 36% below the 52-week range high of $141.24, and even the highest target of $103 remains below that high, reflecting a more conservative reassessment amid declining comparable sales and margin pressure. The lowest target of $82 is above the 52-week range low of $64.75, so the valuation range combines expectations of a recovery with continued caution regarding the pace of existing-store growth.
Figures in the text are as of 2026-09-02; the live price is shown at the top of the page.
Sales rose 5% to $2.3 billion, an increase of $105 million year over year. Growth came from the strong performance of new stores, while comparable-store sales declined 1%. E-commerce also grew by more than 12% and accounted for approximately 16% of sales. The company ended the quarter with 490 stores across 25 states.
Management expects total sales growth of between 5.5% and 6.5% on a 52-week basis, with comparable sales between negative 0.5% and positive 0.5%. It expects earnings before interest and taxes of between $675 million and $685 million and diluted earnings per share of between $5.32 and $5.40. The outlook assumes share repurchases of at least $300 million and net capital expenditures of approximately $310 million. Fiscal 2026 will consist of 53 weeks, with the additional week occurring at the end of Q4.
Sprouts opened seven stores during fiscal Q2 2026, and management said new stores generally performed above its expectations. The four most recent store classes also achieved positive comparable-store sales growth. The company targets 42 net new stores in fiscal 2026, including at least 15 stores in Q3. The plan is supported by more than 110 executed leases and 155 approved locations.
The company launched approximately 1,300 new items in fiscal Q2 2026, focusing on organic, seed oil-free, fiber-rich, and protein-rich products. Launches include Pasturebird chicken across the network, seed oil-free frozen potatoes, and fresh organic bread priced at $4. The Sprouts brand accounted for 26% of sales, while organic products exceeded 30% of total sales. Management said products launched during the prior year clearly outperformed growth for the store as a whole.
Gross margin declined 12 basis points to 38.7% in fiscal Q2 2026 due to investment in loyalty and higher fuel costs, partially offset by self-distribution and vendor participation. Selling, general, and administrative expenses rose to $683 million, with efficiency deteriorating by 30 basis points due to weak comparable sales and investments. Management expects approximately 50 basis points of pressure on the earnings before interest and taxes margin in Q3. It also included $2.5 million in fuel costs in each quarter of the second half of fiscal 2026.
E-commerce grew by more than 12% in fiscal Q2 2026 and now represents approximately 16% of sales through Instacart, DoorDash, and Uber Eats. Management said most digital-channel customers also shop in stores and are among its highest-value customers. In the supply chain, the Northern California center began operating, and approximately 85% of stores are now supplied with fresh meat through Sprouts distribution centers. The company is also testing self-distribution of selected Sprouts brand items to improve service and profitability.
