METRO earnings
METRO's next results are expected on November 18, 2026. METRO's key watch is whether food traffic and margins recover after Laval.
What has METRO guided for FY2027?
METRO’s price can reach C$114.62 by October 2029, hinging on food recovery, pharmacy growth, productivity gains and the valuation multiple. That implies a 23% total return including dividends. Management targets annual sales growth of 2%–4% and adjusted diluted EPS growth of 8%–10%, assuming no material labour or distribution-centre disruption. By the end of FY2027, it expects C$7.5 million in recurring annualized net earnings improvement from network changes. The plan includes 10 Metro-to-Food-Basics conversions.
Management expects recurring annualized net earnings improvement by the end of Fiscal 2027. Annualized means the full-year run rate once the changes are complete, not cash already earned. A separate provincial tax holiday related to Terrebonne’s automated distribution centre supports earnings through approximately Fiscal 2027, but it is temporary and cannot substitute for lasting operating savings.
| The period guided | Low | High | The date it was given | |
|---|---|---|---|---|
| Opening of about a dozen new or converted stores (stores) | Fiscal 2026 | 12 | 12 | Aug 12, 2026 |
| Conversion of 10 Metro stores to the Food Basics discount banner (stores) | By end Fiscal 2027 | 10 | 10 | Aug 12, 2026 |
| Closure of a satellite warehouse (warehouses) | By end Fiscal 2027 | 1 | 1 | Aug 12, 2026 |
| Closure of our dedicated e-commerce fulfillment centre in Montreal (centres) | By end Fiscal 2027 | 1 | 1 | Aug 12, 2026 |
| Recurring annualized net earnings improvement | By end Fiscal 2027 | 7.5 | 7.5 | Aug 12, 2026 |
| Provincial tax holiday related to the commissioning of our new automated distribution centre | Approximately Fiscal 2025–2027 | 66.0 | 66.0 | Dec 10, 2025 |
Did METRO keep its past earnings promise?
Before Q3, METRO guided adjusted earnings per share, or adjusted EPS, of C$1.22–C$1.27. It reported C$1.24, inside that range. Adjusted EPS is profit per share after removing or rearranging items management treats as unusual. It aims to show the ongoing business more clearly, much as a household budget might separate a regular salary from a one-time repair bill.
What has METRO's revenue and profit trend been over the last eight quarters?
Profit fell more sharply than sales. Gross margin declined to 18.8% from 19.8%, while operating income fell to C$330.0 million from C$470.8 million. METRO estimated the strike’s effect at C$90 million before tax and C$66 million after tax. The damage included lost sales and margins, inventory losses, third-party logistics and security costs. METRO did not adjust reported net earnings for the strike.
| Jul 2026 | Mar 2026 | Dec 2025 | Sep 2025 | Jul 2025 | Mar 2025 | Dec 2024 | Sep 2024 | |
|---|---|---|---|---|---|---|---|---|
| Revenue | 6,970.4 | 5,113.0 | 5,285.8 | 5,108.7 | 6,871.0 | 4,909.9 | 5,117.1 | 4,938.4 |
| Gross margin | 18.8% | 20.1% | 19.7% | 20.0% | 19.8% | 20.0% | 19.7% | 19.7% |
| Operating income | 330.0 | 364.3 | 339.0 | 320.4 | 470.8 | 324.9 | 347.9 | 323.8 |
| Net income | 211.1 | 246.5 | 225.5 | 216.0 | 322.8 | 219.4 | 258.8 | 219.4 |
| EPS, diluted | 1.00 | 1.16 | 1.05 | 1.00 | 1.48 | 0.99 | 1.16 | 0.98 |
| = Free cash flow | 133.5 | 388.0 | -65.1 | 249.9 | 391.9 | 209.8 | -40.1 | 234.2 |
What this means. These are fiscal quarters, so they usually cover 12 weeks and one quarter covers 16 weeks instead of always covering three calendar months.
What should METRO watchers look for in the next results?
The strike lasted nearly six months. Workers ratified a new collective agreement on September 24, with a gradual return to work beginning September 27. METRO said the return would be gradual because its contingency network was less effective than its own network. The important evidence will be the speed of returning traffic, assortment and sales, alongside the lasting distribution costs created by the new agreement.