By Ethan BrooksPublix Super Markets reported a 0.6% decline in comparable-store sales for the third quarter of 2026 on November 2, marking its fifth consecutive quarter of moderating sales growth. The Lakeland, Florida-based grocery chain cited lower prescription medication prices under federal Medicare reforms and cautious household spending across its southeastern footprint.
Total revenue for the three months ended September 26, 2026, edged up 1% year over year to $15.5 billion, compared with $15.4 billion in the third quarter of 2025. That modest top-line gain followed a 1% total sales increase and a 0.5% comparable-store sales drop during the second quarter ended June 27, 2026. The consecutive quarterly contractions contrast sharply with the 7.3% revenue surge the supermarket operator recorded during the second quarter of fiscal 2025.
Net earnings for the third quarter fell 9.9% year over year to $1.1 billion, or $1,066 million, down from $1.2 billion, or $1,183 million, a year earlier. GAAP diluted earnings per share declined to $0.33 from $0.37 in the prior-year period. Excluding net unrealized gains on equity securities, adjusted net earnings totaled $908 million, or $0.29 per share, down 7.3% from $980 million, or $0.30 per share, in the third quarter of 2025.
Federal Drug Pricing Reforms and Consumer Pressures
Management attributed the ongoing comparable-store sales slide primarily to the Medicare maximum fair price mandate, which took effect on January 1, 2026, under the federal Inflation Reduction Act. The provision lowered negotiated prices for 10 widely prescribed medications, directly reducing dollar sales volume across in-store pharmacy counters. At the same time, persistent inflation and broader economic headwinds have prompted shoppers to pare back discretionary grocery purchases.
Chief Executive Officer Kevin Murphy noted in a statement that many customers continue to feel the effects of a challenging economy. He praised store associates for delivering premier customer service and care across the employee-owned chain during a period of tighter household budgets. Across the wider Business and retail landscape, regional grocers have faced similar top-line pressures as value-conscious shoppers trade down to lower-cost staples.
Nine-Month Results and Stock Valuation Update
For the nine months ended September 26, 2026, total revenue rose 1.4% to $47.4 billion from $46.8 billion a year earlier, while comparable-store sales declined 0.4%. Nine-month GAAP net earnings slipped 1.5% to $3.5 billion, or $3,517 million, compared with $3.6 billion, or $3,569 million, in 2025, leaving GAAP diluted earnings per share unchanged at $1.10. Excluding net unrealized gains on equity investments, nine-month adjusted net earnings decreased 2.8% to $3.1 billion, or $0.97 per share, down from $3.2 billion, or $0.98 per share, a year ago.
Effective November 1, 2026, the company lowered its private stock price from $19.60 to $18.70 per share, following an earlier reduction from $20.45 to $19.60 per share on August 1. Shares of the Lakeland-based grocer are not publicly traded and are made available for sale exclusively to current associates and members of its board of directors.
Pharmacy Initiatives and Regional Store Expansion
To support pharmacy foot traffic, the retailer joined the federal Medicare GLP-1 Bridge program during the third quarter, allowing eligible Medicare enrollees to access select weight-loss medications for a $50 monthly copayment through December 31, 2027. Throughout the first nine months of 2026, the company also opened 23 new supermarkets, remodeled 78 existing locations, and closed 12 stores. In early October 2026, the chain reached a regional milestone by opening its 10th store in Kentucky—its newest expansion state—before signing a lease for a new store in Culpeper, Virginia, late in the month.
