Q2 26 EPS Adjusted
$0.20
BEAT +60.90%
Est. $0.12
Includes $5.4 million in net restructuring charges related to the Optimization Plan, $0.6 million in asset impairment, $1.3 million in amortization of purchase accounting assets and deferred financing costs, and $7.5 million in other non-recurring items
Q2 26 Revenue
$1.19B
BEAT +2.18%
Est. $1.17B
vs S&P Since Q2 26
+16.8%
BEATING MARKET
GO +15.5% vs S&P -1.3%
Market Reaction
Did GO Beat Earnings? Q2 2026 Results
Grocery Outlet Holding Corp. Delivered a stronger-than-expected second quarter of fiscal 2026, beating on both the top and bottom lines even as its business transformation continued to weigh on results. The discount grocer posted adjusted EPS of $0.2… Read more Grocery Outlet Holding Corp. Delivered a stronger-than-expected second quarter of fiscal 2026, beating on both the top and bottom lines even as its business transformation continued to weigh on results. The discount grocer posted adjusted EPS of $0.20, well ahead of the $0.12 consensus estimate by 60.90%, while net sales rose 1.1% year-over-year to $1.19 billion, clearing the $1.17 billion analyst estimate by 2.18%. The outperformance came despite meaningful headwinds: gross margin contracted 40 basis points to 30.2%, pressured by promotional activity and inventory markdowns tied to closures under the Optimization Plan, which has now shuttered all 36 targeted underperforming stores. A federal securities lawsuit alleging the company misrepresented its growth prospects through aggressive expansion adds a layer of legal uncertainty to the recovery story. Still, management responded with upward guidance revisions, raising its fiscal 2026 adjusted EBITDA outlook to $225 million to $235 million and diluted adjusted EPS to $0.51 to $0.55, signaling confidence that the steepest comp-store pressures may be easing.
Key Takeaways
- • Net sales growth of 1.1% driven by new store openings
- • Comparable store sales declined 0.3%, improving from first quarter trends
- • Transaction count increased 1.8% while average transaction size decreased 2.1%
- • Gross margin declined 40 basis points to 30.2% due to promotional activity and inventory markdowns from Optimization Plan store closures
- • Improvements in inventory management partially offset gross margin pressure
- • Capital expenditures decreased significantly due to fewer new store openings and absence of prior-year warehouse investments
GO Forward Guidance & Outlook
The company revised fiscal 2026 guidance upward on key metrics. Net sales are now expected at $4.70 to $4.72 billion (previously $4.60 to $4.72 billion). Comparable store sales outlook improved to -0.5% to 0.0% (from -2.0% to 0.0%). Gross margin narrowed to 29.8%-30.0% (from 29.7%-30.0%). Adjusted EBITDA raised to $225 million to $235 million (from $220 million to $235 million). Diluted adjusted EPS raised to $0.51 to $0.55 (from $0.45 to $0.55). New store openings remain at 30 to 33 (net of Optimization Plan closures). Capital expenditures (net of tenant improvement allowances) unchanged at $170 million. The Optimization Plan is expected to be substantially completed by Q1 fiscal 2027 with estimated net total restructuring charges of $15 million to $24 million across fiscal 2026 and 2027.
GO YoY Financials
Q2 2026 vs Q2 2025, source: SEC Filings
“We delivered second-quarter results ahead of our outlook, as efforts to strengthen our opportunistic offering and value perception gained traction.”
— Jason Potter, Q2 2026 Earnings Press Release
GO Earnings Trends
GO vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
GO EPS Trend
Earnings per share: estimate vs actual
GO Revenue Trend
Quarterly revenue: estimate vs actual
GO Quarterly Results
6 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q2 26 BEAT Includes $5.4 million in net restructuring charges related to the Optimization Plan, $0.6 million in asset impairment, $1.3 million in amortization of purchase accounting assets and deferred financing costs, and $7.5 million in other non-recurring items | $0.12 | $0.20 | +60.90% | $1.19B | +2.18% |
| Q1 26 BEAT | $0.02 | $0.05 | +120.26% | $1.17B | +1.38% |
| Q4 25 MISS FY | $0.21 | $0.19 | -8.92% | $1.22B | -1.07% |
| FY Full Year | $0.78 | $0.76 | -2.93% | $4.69B | -0.17% |
| Q3 25 BEAT | $0.19 | $0.21 | +11.46% | $1.17B | -0.94% |
| Q2 25 BEAT | $0.17 | $0.23 | +32.87% | $1.18B | -0.66% |
| Q1 25 BEAT | $0.07 | $0.13 | +82.84% | $1.13B | +0.11% |