Sprouts rallies after Q1 EPS beat, buybacks, and reaffirmed 2026 outlook
SFM•Sprouts Farmers Market shares are jumping after reporting Q1 2026 EPS of $1.71, beating expectations, on net sales of $2.33B (+4% year over year) with comps down 1.7%. The company also reiterated its full-year 2026 outlook (sales growth 4.5%–6.5%, EPS $5.32–$5.48) and highlighted $140M of Q1 buybacks.
1) What’s moving the stock
Sprouts Farmers Market is surging after releasing first-quarter 2026 results that came in better than feared on profitability. The company posted diluted EPS of $1.71 for the quarter ended March 29, 2026, and reported net sales of $2.33 billion, up 4% from the prior year, as investors focused on earnings resilience, cash generation, and capital returns. (investors.sprouts.com)
2) Key numbers investors are reacting to
Comparable-store sales fell 1.7%, but Sprouts still delivered EPS above consensus and emphasized continued momentum in higher-growth areas such as e-commerce. Management also noted it repurchased 1.9 million shares for $140 million in the quarter and ended Q1 with $252 million in cash and no balance on its revolving credit facility, supporting the view that the balance sheet can fund expansion and buybacks simultaneously. (investors.sprouts.com)
3) Guidance and what it signals for 2026
Sprouts kept its full-year 2026 outlook intact on a 52-week basis, calling for net sales growth of 4.5% to 6.5% and diluted EPS of $5.32 to $5.48, alongside 40+ new store openings. It also provided second-quarter guidance for comparable-store sales of (2)% to 0% and EPS of $1.32 to $1.36, framing the near-term as a continuation of tough comparisons and a cautious consumer backdrop with expectations for improvement later in the year. (investors.sprouts.com)
