Sprouts Farmers Market, Inc.(SFM)Stock Analysis
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Rank #196 of 2,879 stocksTOP 10%
Rankings refresh quarterly once 80% of peers have filed (~45 days after quarter-end). Next update: ~Aug 14, 2026.
Revenue Growth
Profitability
Balance Sheet
Earnings Quality
Free Cash Flow
Institutional Flow
Revenue Scale
Dilution Risk
SFM Stock Analysis & AI Quality Score
AI stock analysis and institutional research for Sprouts Farmers Market, Inc. (SFM), a Consumer Staples sector company. 13F Pro's AI-powered ranking engine scores SFM at 73.4/100 on a 32-signal composite quality model, placing it at rank #196 of 2,879 stocks — the top 10% of the AI-ranked universe. SFM scores in the top quartile across balance sheet strength (92.7), revenue scale (85.6), earnings quality (79.8). Based on the latest XBRL financial filings (Q1 2026), Sprouts Farmers Market, Inc. reports quarterly revenue of $2.3B, net income of $163.7M, an operating margin of 9.2%. Top institutional holders of SFM by reported 13-F value include FMR, BlackRock,, VANGUARD PORTFOLIO MANAGEMENT, based on the most recent SEC filings. SFM trades on the Nasdaq exchange and files with the SEC under CIK 1575515. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate SFM daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for Sprouts Farmers Market, Inc. directly from SEC EDGAR. Sprouts Farmers Market, Inc.'s 13F Pro composite quality score has ranged between 8 and 74 since 2021, currently 73.4 — an improving long-term trajectory across 56 quarterly and live scoring snapshots.
What's Driving SFM's Business? Latest 10-Q Breakdown
✓ 14/14 datapoints verifiedAI-extracted from Sprouts Farmers Market, Inc.'s 10-Q filed 2026-04-29 — Q1 FY2026 (thirteen weeks ended March 29, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Net sales rose 4% to $2.33B despite comparable store sales declining 1.7%, driven by 6 new store openings, but net income fell 9% to $163.7M due to loyalty program impact and margin pressure.
Biggest Revenue Drivers
Total revenue: $2,329.2M+4% YoY
Includes produce, meat and meat alternatives, seafood, deli, bakery, floral and dairy.
Includes grocery, vitamins and supplements, bulk items, frozen foods, beer and wine, and natural health and body care.
Largest Expense Items
Increased due to higher sales volume and loyalty program impact.
Increase primarily due to new stores opened since comparable period; SG&A as percent of sales rose 0.4 percentage points.
Reflects depreciation for new store locations and remodel initiatives.
Margins: Gross margin declined 20 basis points to 39.4%, primarily driven by the impact of the loyalty program launched in July 2025 and unfavorable shrink. Operating margin compressed as SG&A deleverage from negative comparable store sales and depreciation increases outweighed gross profit gains.
Watch Items from the Filing
- Comparable store sales declined 1.7% in Q1 2026 versus +11.7% growth in Q1 2025, indicating significant deceleration and consumer spending challenges.
- Loyalty program launched July 2025 negatively impacted gross margin by estimated amount not separately disclosed; program requires ongoing monitoring for customer adoption and margin recovery.
- Litigation: Harvest Sherwood disputes with counterclaims seeking ~$42M damages from company; trial set June 2026. Company countersuing for ~$65M on breach and other claims.
- Securities class action and derivative litigation filed by shareholders alleging false statements on customer resilience; currently stayed pending resolution of class action with no loss estimate available.
- New 10-year corporate headquarters lease (commenced 2025) with $110M total non-cancellable payments; $85.3M recorded as finance obligation with construction completion expected H2 2026.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
Revenue
Q1 2026
$2.3B
Net Income
Q1 2026
$163.7M
Free Cash Flow
Q1 2026
$134.1M
Operating Margin
Q1 2026
9.2%
Revenue & Net Income
Earnings Per Share
Key Financials Over Time
Export Financial Table · Pro+Revenue
+20.5% YoYNet Income
+45.7% YoYOperating Income
+40.8% YoYEPS (Diluted)
+56.9% YoYTotal Assets
+18.6% YoYTotal Debt
Op. Cash Flow
+73.8% YoY| Metric | FY 2024 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|
| Revenue | $7.72B +20.5% | $6.40B +5.0% | $6.10B -5.7% | $6.47B +14.8% | $5.63B +8.2% | $5.21B |
| Net Income | $380.6M +45.7% | $261.2M +7.0% | $244.2M -15.1% | $287.4M +92.1% | $149.6M -5.6% | $158.5M |
| Operating Income | $504.5M +40.8% | $358.4M +7.3% | $334.1M -14.7% | $391.7M +80.2% | $217.4M -2.5% | $222.9M |
| EPS (Diluted) | $3.75 +56.9% | $2.39 +13.8% | $2.10 -13.6% | $2.43 +94.4% | $1.25 +2.5% | $1.22 |
| Total Assets | $3.64B +18.6% | $3.07B +5.0% | $2.92B +4.2% | $2.81B +3.1% | $2.72B +62.5% | $1.68B |
| Total Debt | — | $250.0M +0.0% | $250.0M | — | — | $453.0M |
| Operating Cash Flow | $645.2M +73.8% | $371.3M +1.8% | $364.8M -26.2% | $494.0M +39.1% | $355.2M +20.7% | $294.4M |
AI Insight: SFM Financial Trends
Sprouts shows strong Q1 seasonality with revenue jumping 8.4% and operating income surging 75% quarter-over-quarter, but underlying trends remain choppy.
• Revenue increased from $2,149M in Q4 2025 to $2,329M in Q1 2026, marking the highest quarterly revenue on record.
• Operating income rebounded from $123M in Q4 2025 to $215M in Q1 2026, nearly matching Q1 2025's $226M peak.
• Operating cash flow doubled from $139M in Q4 2025 to $235M in Q1 2026, showing strong seasonal working capital management.
⚠ Revenue declined sequentially in three of the last four quarters before Q1 2026, suggesting underlying growth challenges outside seasonal peaks.
⚠ Operating margins remain volatile, ranging from 5.7% to 10.1% across recent quarters without clear improvement trajectory.
AI Insight: SFM Ratio Trends
SFM exhibits strong Q1 seasonality with operating margins consistently spiking above 9% each first quarter.
• Operating margin jumped from 5.7% in Q4 2025 to 9.2% in Q1 2026, mirroring the Q1 2025 spike to 10.1%.
• ROIC surged from 35.1% in Q4 2025 to 60.1% in Q1 2026, following the same seasonal pattern as prior year.
• Net profit margin expanded from 4.2% in Q4 2025 to 7.0% in Q1 2026, consistent with Q1 seasonality.
⚠ Q4 margins consistently weaken with operating margin falling to 5.3% in 2024 and 5.7% in 2025.
⚠ Post-Q1 margin compression appears predictable but investors should monitor if Q2-Q4 2026 maintains year-over-year improvements.
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Top Institutional Holders of SFM
FMR LLC
$985.3M12,774,138 shBlackRock, Inc.
$809.5M10,494,904 shVANGUARD PORTFOLIO MANAGEMENT LLC
$382.2M4,954,725 shVANGUARD CAPITAL MANAGEMENT LLC
$330.4M4,283,917 shMORGAN STANLEY
$301.3M3,906,186 shNORDEA INVESTMENT MANAGEMENT AB
$263.4M3,410,703 shSTATE STREET CORP
$242.9M3,148,762 shRENAISSANCE TECHNOLOGIES LLC
$188.0M2,437,374 shGEODE CAPITAL MANAGEMENT, LLC
$156.4M2,026,752 shDIMENSIONAL FUND ADVISORS LP
$147.1M1,906,904 sh
| Fund | Value | Shares |
|---|---|---|
| FMR LLC | $985.3M | 12,774,138 |
| BlackRock, Inc. | $809.5M | 10,494,904 |
| VANGUARD PORTFOLIO MANAGEMENT LLC | $382.2M | 4,954,725 |
| VANGUARD CAPITAL MANAGEMENT LLC | $330.4M | 4,283,917 |
| MORGAN STANLEY | $301.3M | 3,906,186 |
| NORDEA INVESTMENT MANAGEMENT AB | $263.4M | 3,410,703 |
| STATE STREET CORP | $242.9M | 3,148,762 |
| RENAISSANCE TECHNOLOGIES LLC | $188.0M | 2,437,374 |
| GEODE CAPITAL MANAGEMENT, LLC | $156.4M | 2,026,752 |
| DIMENSIONAL FUND ADVISORS LP | $147.1M | 1,906,904 |
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Is SFM a good stock to buy?
13F Pro's AI-powered analysis of Sprouts Farmers Market, Inc. (SFM) draws on SEC EDGAR-sourced fundamentals, institutional 13F holdings, and insider Form 4 transactions in the Consumer Staples sector (listed on Nasdaq). The 32-signal AI Quality Score, current rank, and full bull/bear verdict for SFM are available on the SFM stock profile dashboard — with the same data, AI insights, ratios, and institutional activity refreshed after every 10-K, 10-Q, 13F, and Form 4 filing.
Which hedge funds own SFM?
Institutional investors are required to disclose their holdings quarterly via SEC Form 13F. 13F Pro aggregates these filings to show which hedge funds, mutual funds, and asset managers are buying or selling SFM. Combined with insider transaction data from Form 4 filings and AI-powered analysis from 10 specialized research agents, 13F Pro provides a comprehensive view of Sprouts Farmers Market, Inc.'s investment landscape.