Weis Markets Reports Third Quarter 2026 Results

Weis Markets posts strong Q3 growth despite pharmacy headwinds and declares steady dividend.

What the company is saying

Weis Markets, Inc. highlights a 3.0% year-over-year increase in third quarter total revenue to $1.28 billion, with comparable store sales up 1.3%. The company attributes growth primarily to higher fuel sales and new store openings, while acknowledging that pharmacy sales were negatively impacted by $14.56 million due to Inflation Reduction Act Medicare pricing changes. Chairman, President and CEO Jonathan H. Weis credits improved inventory shrink, lower internal supply chain costs, and ongoing investments in people, process, and technology for the higher gross profit margin of 25.5%. The company notes that egg price deflation and reduced produce demand during a Cyclospora outbreak also moderated sales. Weis Markets emphasizes its continued support for customers through price investments and loyalty programs, and communicates confidence in operational efficiency gains. The Board declared a quarterly cash dividend of $0.34 per share, reinforcing a stable return to shareholders.

What the data suggests

The third quarter saw total revenue rise to $1.28 billion from $1.24 billion, a 3.0% increase, with gross profit up 5.8% to $324.61 million and net income up 31.4% to $22.21 million. Earnings per share climbed to $0.90 from $0.69. Year-to-date, revenue reached $3.81 billion, up 4.1%, and net income totaled $72.92 million, an 18.1% increase. Gross profit margin improved to 25.5% for the quarter and 25.9% year-to-date. Pharmacy sales were hit by $14.56 million in Q3 and $32.75 million year-to-date from Medicare pricing changes, reducing revenue growth by 1.2 and 0.9 percentage points, respectively. Comparable store sales excluding fuel declined 1.2% in Q3 and 0.1% year-to-date, indicating underlying softness outside fuel. Operating income rose 38.6% to $28.51 million for the quarter. The company’s disclosure is comprehensive, with all key financials and the impact of regulatory changes quantified.

Analysis

The announcement is highly factual and supported by detailed, realised financial metrics: revenue, gross profit, net income, EPS, and margins are all disclosed for both the quarter and year-to-date, with clear year-over-year comparisons. The only forward-looking claim is the company's ongoing investment in price, loyalty marketing, people, process, and technology, but this is presented as a continuation rather than a new, aspirational initiative, and no exaggerated language or unsubstantiated projections are used. All other claims are realised and quantified, including the impact of regulatory headwinds. There is no evidence of narrative inflation or overstatement; the tone is proportionate to the results. No large capital outlay is paired with long-dated, uncertain returns, and all benefits discussed are either already realised or will be realised in the immediate term (e.g., the declared dividend).

Risk flags

• ●Regulatory risk remains elevated as pharmacy sales were reduced by $14.56 million in Q3 and $32.75 million year-to-date due to the Inflation Reduction Act Medicare maximum fair price provisions. Further regulatory changes could continue to pressure this segment.
• ●Comparable store sales excluding fuel declined 1.2% in the quarter and 0.1% year-to-date, suggesting that core grocery and non-fuel categories are underperforming relative to headline growth. This exposes the business to risk if fuel sales growth moderates.
• ●The company cites improved inventory shrink and supply chain costs as drivers of margin improvement, but does not provide specific figures for these operational gains. Without quantification, the sustainability of these improvements is less certain.

Bottom line

Weis Markets delivered robust third quarter and year-to-date financial results, with revenue, gross profit, and net income all rising meaningfully versus 2025. Fuel sales and new store openings are the main growth engines, while pharmacy sales face ongoing regulatory headwinds that have already reduced revenue by tens of millions. The company’s core non-fuel comparable sales are flat to down, which could be a concern if fuel tailwinds fade. The declared $0.34 per share dividend signals confidence in cash flow and shareholder returns. Investors should focus on whether core grocery and pharmacy trends stabilize and if operational efficiency gains are sustained. The most important takeaway is that headline growth is strong but partly reliant on fuel, with regulatory and category-specific risks still present.

Announcement summary

(NYSE:WMK) Weis Markets, Inc. reported financial results for the 13-week third quarter and 39-week year-to-date periods ended September 26, 2026. Total revenue for the third quarter was $1.28 billion, up 3.0% from $1.24 billion in the same period of 2025, driven primarily by higher fuel sales and sales from new stores, partially offset by lower sales in pharmacy, dairy, and produce. Pharmacy sales were negatively impacted by approximately $14.56 million due to Inflation Reduction Act Medicare maximum fair price provisions effective January 1, 2026, reducing total revenue growth by about 1.2 percentage points. Third quarter comparable store sales increased 1.3%, while comparable store sales excluding fuel decreased 1.2%. Gross profit for the third quarter increased 5.8% to $324.61 million, with gross profit margin rising to 25.5% from 24.8% in 2025. Income from operations for the quarter increased 38.6% to $28.51 million. Net income for the third quarter was $22.21 million, a 31.4% increase from $16.90 million in 2025. Third quarter earnings per share were $0.90 compared to $0.69 in the prior year. For the 39-week year-to-date period, total revenue was $3.81 billion, up 4.1% from $3.66 billion in 2025, with growth driven by higher fuel sales, new stores, and increases in grocery and pharmacy sales. Year-to-date pharmacy sales were negatively impacted by $32.75 million from the same Medicare pricing provisions, reducing total revenue growth by about 0.9 percentage points. Year-to-date comparable store sales increased 1.9%, while comparable store sales excluding fuel decreased 0.1%. Year-to-date gross profit increased 7.8% to $983.26 million, with gross profit margin up to 25.9% from 25.0% in 2025. Income from operations for the year-to-date period increased 28.6% to $93.31 million. Year-to-date net income totaled $72.92 million, up 18.1% from $61.73 million in 2025. Year-to-date earnings per share were $2.95 compared to $2.38 in the prior year. On October 29, 2026, the Board of Directors declared a quarterly cash dividend of $0.34 per share, payable November 23, 2026, to shareholders of record as of November 9, 2026. Chairman, President and CEO Jonathan H. Weis stated that higher fuel sales, new store sales, and improved inventory shrink and supply chain costs contributed to the improved results, while pharmacy pricing changes, egg price deflation, and lower produce demand during the Cyclospora outbreak moderated sales. The company continues to invest in price, loyalty marketing, people, process, and technology to enhance customer value and operational efficiency. Management provided a two-year stacked comparable store sales analysis, with third quarter two-year stacked comparable store sales up 3.8% and year-to-date up 3.6%.

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