Abstract

Vital Farms, Inc. will report quarterly results on February 26, 2026 Pre-Market, with expectations pointing to double-digit growth in revenue, EBIT, and adjusted EPS while investors gauge margin resilience and business mix to assess momentum into the next fiscal period.

Market Forecast

Based on current estimates for the quarter ending near February 26, 2026, Vital Farms, Inc. is projected to deliver revenue of 214.44 million, a year-over-year increase of 33.76%, adjusted EPS of 0.391, up 136.92% year-over-year, and EBIT of 23.48 million, up 168.54% year-over-year. Explicit margin guidance is not indicated; investors will benchmark the upcoming gross profit margin against the prior quarter’s 37.68% and the net profit margin against 8.25% to assess operational efficiency and pricing/mix effectiveness.

Eggs and egg-related products remain the company’s central revenue driver, supported by disciplined pricing and consistent demand patterns; the outlook implies continued momentum while margins hinge on mix quality and cost control. Butter and butter-related products contributed 6.30 million last quarter; while smaller in scale, ongoing distribution and brand adjacency can support incremental growth from a low base.

Last Quarter Review

Vital Farms, Inc. reported revenue of 198.94 million, a gross profit margin of 37.68%, GAAP net profit attributable to the parent company of 16.42 million, a net profit margin of 8.25%, and adjusted EPS of 0.36, which was up 125.00% year-over-year. A notable highlight was the company’s revenue outperformance versus estimates by 7.22 million, accompanying EBIT of 21.40 million that surpassed consensus, indicating leverage from volume, pricing, and expense discipline. Main business highlights: eggs and egg-related products generated 192.63 million, representing 96.83% of total revenue, while butter contributed 6.30 million; overall company revenue grew 37.20% year-over-year, signaling broad-based strength across the portfolio and channels.

Current Quarter Outlook (with major analytical insights)

Core Egg Business: Scale, Mix, and Margin Benchmarks

Eggs and egg-related products anchor Vital Farms, Inc.’s financial profile and will shape the headline numbers in the upcoming release. The current revenue estimate of 214.44 million implies a year-over-year increase of 33.76%; translating this into the core eggs business suggests continued demand strength and mix consistency that can sustain a comparable trajectory. Investors will pay careful attention to how that revenue converts into operating profitability and whether gross margins hold near the prior quarter’s 37.68%. Mix can be a critical factor: if higher-value product lines maintain their share within the assortment, it supports gross margin preservation; alternatively, if promotional intensity rises, the near-term margin could soften even while volumes expand.

The prior quarter’s net margin of 8.25% provides a baseline for assessing net efficiency in the context of anticipated EBIT growth of 168.54% year-over-year this quarter. This amplification in EBIT expectations far exceeds the revenue growth rate, which, if realized, implies operating leverage and disciplined overhead management. Pricing stability and cost inputs will matter for translating top-line gains into bottom-line growth; any shift in input costs or logistics could nudge margins, so the reported results and management commentary around cost containment will be key lenses for interpreting the durability of earnings power. A clear beat on adjusted EPS versus the 0.391 estimate would likely reflect a combination of resilient mix, controlled expenses, and favorable conversion of gross profit into EBIT.

Butter and Adjacent Value-Added Products: Low-Base Expansion and Contribution

Butter and butter-related products contributed 6.30 million in the last quarter, a modest portion of company revenue. Despite its smaller scale, the category’s growth potential lies in adjacency to the core eggs franchise and opportunities to extend household penetration through cross-category merchandising and brand recognition. From an earnings standpoint, even moderate expansion in butter can enhance the margin profile if the product set carries attractive unit economics and if distribution broadens in a cost-efficient manner.

The contribution from butter will not determine the direction of the headline numbers, but it can incrementally support revenue growth while offering a margin tailwind if the mix skews toward higher-value formats. The category’s scale allows for outsized percentage growth without requiring large absolute investments, which can be accretive to EBIT if variable costs are absorbed effectively across existing supply and logistics frameworks. In this quarter’s print, investors will look for signs of sustained category development—such as consistent sell-through and stable pricing—to validate the long-run potential for butter to become a more meaningful contributor to both revenue and profitability, even if eggs remain dominant in the near term.

Stock Price Drivers This Quarter: Variance vs. Estimates, Margin Trajectory, and Guidance Signals

The primary stock price drivers will be the variance versus consensus estimates on revenue and adjusted EPS, the trajectory of gross margin relative to the prior quarter’s 37.68%, and indications from EBIT performance versus the forecasted 23.48 million. A beat on revenue accompanied by margin preservation would be constructive, but the market will likely differentiate between volume-led growth and mix-led growth, with the latter generally perceived as more sustainable and supportive of earnings quality. The conversion of gross profit into EBIT and net income will be assessed against expense management in selling, general, and administrative lines, and how those costs scale with top-line gains.

Guidance color for subsequent quarters—whether qualitative or quantitative—can also influence the stock’s immediate reaction. If management points to steady demand patterns and consistent pricing while emphasizing continued operational efficiency, it would reinforce the case for ongoing EPS expansion beyond the quarter, given the strong year-over-year growth embedded in the current estimates (EPS up 136.92%, EBIT up 168.54%). Conversely, signs of near-term cost volatility or heavier promotional activity could temper expectations around margin trajectory even if revenue meets targets. The interplay between adjusted EPS and EBIT performance will be particularly salient, as it captures both operating efficiency and any non-operating items that affect net outcomes. Investors will also parse commentary for working capital discipline and inventory management, since those elements affect cash conversion and can act as confirmation of earnings quality, especially when revenue growth is robust.

Analyst Opinions

Bullish vs. bearish ratio: bullish 100%, bearish 0% during the January 1, 2026 to February 19, 2026 window. Needham reiterated a Buy rating on Vital Farms, Inc., with a price target of 45.00, reflecting confidence in the company’s ability to convert double-digit revenue growth into outsized EBIT and EPS gains this quarter. Telsey Advisory also maintained a Buy rating, with a price target of 50.00, aligning with expectations for continued strength in the core eggs category and supportive mix, alongside disciplined expense control that could preserve or enhance margins relative to the prior quarter’s benchmarks.

These bullish views are consistent with the forecast data showing revenue of 214.44 million (+33.76% year-over-year), expected EBIT of 23.48 million (+168.54% year-over-year), and adjusted EPS of 0.391 (+136.92% year-over-year). The analysts’ stance implies that the market is calibrating to a scenario where scale benefits and operating leverage continue to materialize. In the last reported quarter, Vital Farms, Inc. delivered revenue and EBIT that exceeded estimates, with adjusted EPS of 0.36 up 125.00% year-over-year, offering tangible evidence of execution momentum. With those results as a reference point, the prevailing institutional view is that the company can sustain performance, provided mix stays favorable and expenses remain disciplined.

From a near-term perspective, a constructive outcome would feature revenue meeting or exceeding the 214.44 million estimate alongside a gross margin near or above 37.68% and net margin close to the 8.25% precedent. Such a profile would likely confirm the earnings conversion implied by the EBIT and EPS estimates, validating the Buy ratings and associated price targets. If Vital Farms, Inc. articulates steady demand conditions and demonstrates an ability to manage input costs and operational overhead effectively, the path for sustained earnings growth into subsequent quarters strengthens, which aligns with the bullish majority view. In contrast, notable margin compression or a miss on EPS relative to 0.391 could prompt reassessment, but the current consensus among covered institutions skews toward confidence in the company’s capacity to deliver on the growth embedded in estimates.

In summary, institutions tracking Vital Farms, Inc. in early 2026 predominantly see favorable risk-reward premised on continued top-line expansion, operating leverage, and resilient margin outcomes. The combination of strong last-quarter execution and robust current-quarter forecasts supports the buying posture reiterated by Needham and Telsey Advisory, with the upcoming report poised to validate whether the company sustains its upward trajectory in revenue, EBIT, and adjusted EPS while keeping margins aligned with prior performance benchmarks.