Grocery Outlet (NASDAQ:GO) Issues FY 2026 Earnings Guidance

Grocery Outlet (NASDAQ:GO) updated its FY 2026 earnings guidance on Wednesday. The company provided EPS guidance of 0.450-0.550 for the period, compared to the consensus EPS estimate of 0.770. The company issued revenue guidance of $4.6 billion-$4.7 billion, compared to the consensus revenue estimate of $4.8 billion.

Analyst Ratings Changes

GO has been the topic of a number of recent research reports. Zacks Research downgraded Grocery Outlet from a “strong-buy” rating to a “hold” rating in a research report on Friday, November 14th. Jefferies Financial Group reaffirmed a “hold” rating and set a $7.00 price target (down from $18.00) on shares of Grocery Outlet in a research report on Thursday. TD Cowen reissued a “hold” rating on shares of Grocery Outlet in a report on Thursday. Deutsche Bank Aktiengesellschaft set a $11.00 target price on shares of Grocery Outlet in a report on Thursday, January 8th. Finally, UBS Group reaffirmed a “neutral” rating and set a $11.50 price target on shares of Grocery Outlet in a research report on Thursday, December 18th. Eleven analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the company has an average rating of “Reduce” and a consensus target price of $10.68.

Grocery Outlet Stock Performance

NASDAQ GO opened at $6.34 on Friday. Grocery Outlet has a 12-month low of $6.20 and a 12-month high of $19.41. The firm has a 50-day moving average price of $9.72 and a two-hundred day moving average price of $12.70. The company has a market capitalization of $622.19 million, a P/E ratio of -2.77, a P/E/G ratio of 1.79 and a beta of 0.50. The company has a quick ratio of 0.25, a current ratio of 1.30 and a debt-to-equity ratio of 0.40.

Grocery Outlet (NASDAQ:GO) last issued its quarterly earnings results on Wednesday, March 4th. The company reported $0.19 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.21 by ($0.02). The company had revenue of $1.22 billion for the quarter, compared to analyst estimates of $1.23 billion. Grocery Outlet had a positive return on equity of 5.67% and a negative net margin of 4.80%.The company’s quarterly revenue was up 10.7% compared to the same quarter last year. During the same period in the prior year, the company earned $0.15 EPS. Grocery Outlet has set its FY 2026 guidance at 0.450-0.550 EPS. Analysts anticipate that Grocery Outlet will post 0.63 earnings per share for the current year.

Key Grocery Outlet News

Here are the key news stories impacting Grocery Outlet this week:

• Positive Sentiment: Q4 sales and cash-flow bright spots: revenue rose ~10.7% year?over?year and operating cash flow improved materially, giving management some liquidity to execute restructuring. Q4 deep dive
• Positive Sentiment: Management action on store portfolio: Grocery Outlet retained Gordon Brothers to market leasehold opportunities as part of an Optimization Plan, signaling steps to monetize underperforming locations. Gordon Brothers retained
• Neutral Sentiment: Company published the Q4 results, slide deck and earnings-call transcript; investors can review management commentary for details on the Optimization Plan and turnaround timeline. Press release / slides
• Negative Sentiment: Big non-cash charges drove a large operating and net loss: management reported ~$113.8M long?lived asset impairment, $149.0M goodwill impairment and ~$45.9M restructuring charges, producing a sizable operating loss and large GAAP net loss. That shock to profitability is the primary catalyst for the selloff. Holzer investor alert
• Negative Sentiment: Guidance missed expectations: FY2026 EPS guidance of $0.45–$0.55 and revenue guidance below consensus signaled slower recovery, prompting analysts to cut forecasts and price targets. Zacks earnings recap
• Negative Sentiment: Store closures and large fiscal loss: company announced closing 36 stores after reporting a $224.9M net loss for fiscal 2025 — a concrete sign of execution issues and margin pressure. Store closures
• Negative Sentiment: Analyst downgrades and price-target cuts: multiple firms (Jefferies, Morgan Stanley, Wells Fargo, DA Davidson, Telsey, others) lowered ratings/targets after Q4 results — increases selling pressure and reduces buy-side conviction. Jefferies downgrade
• Negative Sentiment: Legal/investigator scrutiny: two law firms announced investigations into possible securities-law issues tied to the company’s disclosures, adding regulatory risk and potential litigation overhang. Ademi investigation

Hedge Funds Weigh In On Grocery Outlet

Hedge funds and other institutional investors have recently modified their holdings of the business. Aster Capital Management DIFC Ltd boosted its stake in Grocery Outlet by 1,030.4% in the fourth quarter. Aster Capital Management DIFC Ltd now owns 2,532 shares of the company’s stock valued at $26,000 after buying an additional 2,308 shares in the last quarter. Kestra Advisory Services LLC bought a new stake in shares of Grocery Outlet during the fourth quarter worth $35,000. State of Wyoming boosted its holdings in shares of Grocery Outlet by 96.9% during the 4th quarter. State of Wyoming now owns 7,886 shares of the company’s stock valued at $80,000 after acquiring an additional 3,880 shares in the last quarter. Olympiad Research LP acquired a new position in Grocery Outlet in the 4th quarter worth about $101,000. Finally, XTX Topco Ltd bought a new stake in shares of Grocery Outlet during the fourth quarter worth about $105,000. Institutional investors own 99.87% of the company’s stock.

Grocery Outlet Company Profile

Grocery Outlet Holding Corp. (NASDAQ: GO) is a specialty discount retailer that offers consumers deeply discounted groceries by purchasing excess inventory, closeouts, and overstocks from manufacturers and distributors. Headquartered in Emeryville, California, the company operates two primary banners—Grocery Outlet and Fresh2Go—with a combined footprint of more than 400 stores. Its product assortment spans fresh produce, meat, dairy, bakery items, household staples, natural and organic offerings, and select specialty products, all sold at significant markdowns compared to conventional supermarkets.

The company’s unique buying model enables it to source inventory through opportunistic purchases of surplus freight, discontinued items, and closeout deals, which it then passes on as savings to its customers.