Saputo’s second-quarter adjusted EPS was C$0.55, above the C$0.49 estimate. High-protein dairy ingredients helped lift margins, despite softer cheese markets and ongoing cost pressures.
Saputo Inc. (TSX: SAP) reported results for the second quarter of fiscal 2027, which ended September 30, 2026. Its adjusted diluted EPS from continuing operations rose to C$0.55 from C$0.43 a year earlier, beating the estimate by 12.2%. Revenue from continuing operations increased 3.6% to C$4.256 billion. Adjusted EBITDA rose 13.8% to C$438 million, and its margin grew to 10.3% from 9.4%. High-protein ingredients and a better product mix supported the results, while inflation and weaker cheese markets weighed on performance.
Recent earnings trend
Saputo Inc
SAP.TO
SAP.TO
Saputo Inc
WealthAwesomeMarket cap
$17.46B
P/E
26.0x
52W high
$44.81
52W low
$35.90
1W change
+9.10%
Beta
0.13
Analyst Price Targets
Based on analyst covering SAP · as of Oct 23, 2026
Wall Street analysts forecast SAP stock price to rise 5.8% over the next 12 months.
Consensus
Moderately BullishBased on avg. target vs last close (formal rating unavailable for Canadian listings)
Avg. Target
C$46.55
+5.8% Upside
Previously C$46.70 on Oct 5, 2026
Current Price
C$43.99
Last close
Targets are snapshotted when they change. Unchanged figures keep their original date. Not financial advice.
Wealth Awesome Price Forecast
WA ModelStatistical 90-day price range based on SAP's historical volatility
30-Day Vol
27.4%
Annualized
90-Day Vol
26.0%
Annualized
Trend (90d)
+19.8%
Annualized drift
90d Mean
C$47.21
Expected price
| Horizon | Expected | 68% Range (1σ) |
|---|---|---|
| 30 trading days | C$45.04 | C$40.98 – C$49.50 |
| 60 trading days | C$46.11 | C$40.34 – C$52.70 |
| 90 trading days | C$47.21 | C$40.08 – C$55.61 |
Methodology: Range is calculated using 30-day realized volatility via geometric Brownian motion (log-normal model). 68% band = ±1σ, 95% band = ±2σ. This is a statistical model, not a prediction. Past volatility does not guarantee future results. Not financial advice.
Analyst coverage: 8 analyst(s) cover this name; upcoming EPS consensus is available.
Beat estimates in 4 of the last 4 comparable quarter(s).
| Fiscal period | Report date | Actual EPS | Estimate | Surprise |
|---|---|---|---|---|
| 2026-12-31 | 2027-02-04 | — | 0.5800 | — |
| 2026-09-30 | 2026-11-05 | 0.5500 | 0.4900 | +12.2% |
| 2026-06-30 | 2026-08-06 | 0.4900 | 0.4500 | +8.9% |
| 2026-03-31 | 2026-06-04 | 0.4100 | 0.3900 | +5.1% |
| 2025-12-31 | 2026-02-05 | 0.5700 | 0.5400 | +5.6% |
| 2025-09-30 | 2025-11-06 | 0.4800 | 0.4600 | +4.3% |
Investor takeaway: Saputo beat earnings estimates and expanded its adjusted EBITDA margin. High-protein ingredients, higher volumes and operational efficiencies helped drive the gains. But continuing-operations results are separate from total net earnings, which also include discontinued operations. Saputo announced the sale of its UK Dairy Division and said it returned about C$300 million to shareholders through share repurchases and dividends. For Canadian investors, the key question is whether ingredient demand and strong execution can support profits as prices ease and input costs remain high. See the Saputo stock page for more coverage.
C$438 million
Saputo’s adjusted EBITDA from continuing operations rose 13.8% year over year to C$438 million. Its margin increased to 10.3% from 9.4%. High-protein dairy ingredients led the gains, along with higher volumes, a better product mix and operational efficiencies. Adjusted EBITDA offers a clearer view of the quarter’s operating performance than total net earnings, which also include discontinued operations.
Bull case
High-protein ingredients drove most of the growth in adjusted EBITDA and margins. Capacity investments, higher sales volumes and a better product mix also helped. In the U.S., adjusted EBITDA rose 23%, and the margin increased to 9.6% from 7.8%. Australia posted its eighth straight quarter of year-over-year adjusted EBITDA growth. Saputo also pointed to improvements in manufacturing, warehousing and its distribution network. Management says selling the UK division could help the company focus its business and strengthen its balance sheet.
Bear case
Some of the improvement came from strong prices for high-protein ingredients, which may not last. Management said prices have eased from their peak, though demand remains strong. Softer cheese markets and higher labour, fuel, transportation and packaging costs remain concerns, as do elevated selling and administrative expenses. In Canada, adjusted EBITDA was flat year over year, while the margin slipped to 12.7% from 13.0%. Weakness in the pizza category also hurt mozzarella and pizza-cheese volumes. The stock’s valuation and recent gains could leave investors with less room for disappointment.
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