Weis Markets Net Income Jumps 30% as Comp Sales Keep Slipping

Weis Markets grew net income more than 30% year over year to $22.2 million in its third quarter, the company reported Tuesday. The rebound follows a near-10% profit decline in Q2.

The profit gain came despite soft comparable-store sales. Comps excluding fuel fell 1.2% in Q3. That marks the second straight quarterly decline: comps rose just over 1% in Q1, then dropped nearly half a percentage point in Q2.

How volatile has Weis Markets' fiscal 2026 been?

Net income has swung sharply all year. Q1 brought a 42.5% year-over-year jump, to almost $28 million. Q2 reversed course with a decline of nearly 10%, to about $23 million. Q3's $22.2 million result restored growth.

Total revenue has been the steadier line. It grew 4.6% in both Q1 and Q2, and ticked up 3% in Q3 to approximately $1.3 billion.

What drove the Q3 revenue increase?

CEO Jonathan H. Weis, who also serves as chairman and president, credited fuel and new stores. He said in a statement: "Higher fuel sales, reflecting both retail price inflation and increased gallons sold, along with sales from new stores, supported the quarter's total revenue increase."

He also named the drags on sales: "Inflation Reduction Act-related pharmacy pricing changes, egg price deflation and lower produce demand during the Cyclospora outbreak moderated sales performance."

How much did pharmacy pricing rules cost?

The Inflation Reduction Act's Medicare maximum fair price provisions, effective Jan. 1, cut pharmacy revenue growth by approximately $14.6 million in the quarter. The company said the hit reduced total revenue growth by 1.2 percentage points — a substantial bite out of the quarter's 3% top-line gain.

Sam Silverstein contributed reporting to this story.

What does this mean going forward?

Weis Markets enters Q4 with a proven ability to grow profit despite falling comps, but the pharmacy pricing headwind is structural, not seasonal, and will persist into future quarters unless prescription economics change.