A natural-food retailer opened 15 stores, while sales at existing locations fell 0.9%

RBC Capital downgraded Sprouts Farmers Market (SFM) to Sector Perform, cutting its price target to $49.00 from $111.00. The stock is near its 52-week low, down 41% over the past year. The firm cited margin concerns and lowered its earnings estimates for 2026 and 2027. Sprouts' Q3 2026 earnings missed expectations, with revenue of $2.3 billion and adjusted earnings of $1.21 per share.

Sprouts Farmers Market (SFM) reported Q3 2026 sales of $2.3B, up 5% YoY, but comparable store sales fell 0.9%. The decline was partly due to a cyclospora disruption. E-commerce sales grew 12%. Gross margin decreased to 38.2%. The company revised its full-year outlook, expecting total sales growth of 4.3% and comparable store sales of -1.7%. It plans to open 42 net new stores and invest in affordability, technology, and supply chain. Net income was $113M, with diluted EPS at $1.21, down 1% YoY.

Sprouts Farmers Market (SFM) opened 15 stores in Q3, ending with 504 locations. E-commerce sales rose 12%, accounting for 16% of total sales. The company plans a pricing reset in Q4 to address traffic pressure. Full-year sales growth is expected at 4.3% with comparable-store sales at -1.7%. SFM projects Q4 comparable-store sales of -2% to -4% and EPS of $0.47-$0.51. Management highlighted investments in affordability and long-term growth strategies.

Sprouts Farmers Market (SFM) reported Q3 2026 net sales of $2.3B, up 5% YoY but below estimates. Comparable sales fell 0.9%, driven by a 3.3% drop in customer transactions. EPS of $1.21 missed forecasts by $0.02. Shares plunged 21.6% after-hours to $48.59. The company cut full-year guidance, citing traffic declines and plans to focus on affordability.

Maplebear (Instacart's parent) rose 3% on potential DoorDash acquisition news. Chipotle gained over 5% with same-store sales beating estimates. ServiceNow dropped 15% after missing profit expectations. Fortinet fell 25% due to lower-than-expected gross margin. Microsoft rose 2% with strong earnings. Alphabet declined 9% with negative free cash flow. Other movers include Align Technology, Sprouts Farmers Market, Ford, FedEx, Honeywell Aerospace, and Carvana.

Sprouts (SFM) reported Q3 2026 revenue of $2.30B, missing estimates by 1.3%. EPS was $1.21, missing by 1.4%. Adjusted EBITDA beat estimates by 1.1%. Q4 EPS guidance missed estimates. Operating margin was 6.6%, and free cash flow margin declined to 4%. The company added 40 stores year-over-year, with flat same-store sales.