Sprouts Stock Plunges 21%: Shoppers Are Visiting Less

Sprouts Farmers Market stock plunged about 21% in after-hours trading on Wednesday, October 28, 2026, after the specialty grocer missed earnings and revenue estimates, reported falling comparable sales, and cut its full-year profit forecast. It was one of the biggest after-hours losers of a brutal earnings night, second only to Fortinet among large movers.

What happened, in short

Sprouts reported third-quarter earnings of $1.21 per share, down from $1.22 a year earlier and below analyst expectations of about $1.22 to $1.23. Revenue rose about 5% from a year earlier to $2.30 billion, missing Wall Street's $2.33 billion estimate. Net income was $113.4 million. The numbers themselves were close — the guidance and the sales trend underneath them were what sent the stock down.

Why it's blowing up

The headline miss was small. The story inside the quarter was not. Comparable-store sales fell 0.9%, a sharp reversal from 5.9% growth a year earlier. Customers spent 2.5% more per visit on average, but they made 3.3% fewer shopping trips than a year ago. In other words, Sprouts is not losing the shoppers it still has — it is seeing them less often, and that frequency drop overwhelmed the bigger baskets.

Management then warned that the fourth quarter will be weaker still. Sprouts expects comparable sales to fall 2% to 4% in the fourth quarter, and it lowered its full-year earnings forecast to approximately $4.80 per share, excluding an extra fiscal week, from $5.32 to $5.40 previously. A cut of that size, paired with a negative sales outlook for the busiest grocery quarter of the year, is what turned a one-cent earnings miss into a roughly one-fifth loss in market value after hours.

The lettuce outbreak that hit the whole aisle

Part of the pressure was outside Sprouts' control. A nationwide Cyclospora outbreak linked to contaminated lettuce, first publicly identified in July, discouraged shoppers from buying fresh produce. Sprouts estimated the outbreak reduced its quarterly comparable sales by about 0.6 percentage points — more than half of the reported decline.

Sprouts is not alone in that hit, which is why traders read the report as a sector signal, not just a company one. Kroger reported just 0.2% comparable-sales growth last quarter, down from 3.4% a year earlier, and also blamed the Cyclospora outbreak, estimating a 0.35-percentage-point drag. Albertsons reported a 0.8% decline in comparable sales earlier this month and withdrew its annual financial forecasts as it launched a broader turnaround effort. When three different grocers point to softer trips and the same produce outbreak, investors start to price a weaker consumer, not just a weaker quarter.

Key facts

Stock move: Down about 21% in after-hours trading on Wednesday, October 28, 2026; shares were already down about 22% year to date at Wednesday's close.
Earnings: $1.21 per share, versus $1.22 a year earlier and consensus of about $1.22 to $1.23.
Revenue: $2.30 billion, up about 5% year on year, versus a $2.33 billion consensus estimate.
Comparable sales: Down 0.9%, versus up 5.9% a year earlier; trips down 3.3%, average spending per visit up 2.5%.
Outbreak drag: An estimated 0.6 percentage points of comparable sales lost to the Cyclospora lettuce outbreak.
Guidance: Fourth-quarter comparable sales expected down 2% to 4%; full-year earnings cut to about $4.80 per share from $5.32 to $5.40.

What's next

The next test is whether the trip decline is mostly the outbreak fading from fresh-produce aisles, or a lasting change in how often customers shop for natural and organic food at premium prices. Sprouts' own fourth-quarter outlook says management expects the pressure to deepen before it eases, so the burden of proof now sits with the holiday quarter. Watch comparable sales, trip counts, and any update on produce demand when Sprouts next reports. For the wider grocery sector, Kroger and Albertsons have already told a similar story this season — softer visits, cautious guidance, and no quick return to last year's growth.

This report describes what happened and why markets reacted. It is not a recommendation to buy, sell, or hold any security.

Sources

FAQ

Why did Sprouts Farmers Market stock fall 21%?

Sprouts missed earnings and revenue estimates, reported a 0.9% fall in comparable sales, and cut full-year earnings guidance to about $4.80 per share from $5.32 to $5.40, sending shares down about 21% after hours.

What were Sprouts' Q3 2026 earnings and revenue?

Sprouts earned $1.21 per share on revenue of $2.30 billion, up about 5% year on year. Both figures came in below analyst estimates of roughly $1.22 to $1.23 per share and $2.33 billion.

How did the Cyclospora outbreak affect Sprouts?

The company estimated the lettuce-linked Cyclospora outbreak cut about 0.6 percentage points from quarterly comparable sales, as shoppers bought less fresh produce. Kroger cited a similar drag.

What did Sprouts guide for the fourth quarter?

Sprouts expects fourth-quarter comparable sales to fall 2% to 4%, a weaker outlook than the third quarter's 0.9% decline.

Sprouts Stock Plunges 21%: Shoppers Are Visiting Less — and Guidance Just Got Cut