EYE Stock Up Following Q4 Earnings & Revenue Beat, Margins Rise

National Vision Holdings, Inc. EYE delivered fourth-quarter 2025 adjusted earnings per share (EPS) from continuing operations of 15 cents compared to a loss of 4 cents a year ago. The figure surpassed the Zacks Consensus Estimate by 172.73%.

GAAP earnings from continuing operations were 4 cents per share compared to a loss of 36 cents in the prior-year quarter.

Full-year 2025 adjusted EPS came in at 80 cents, up 53.8% year over year.

National Vision’s Revenues

Net revenues from continuing operations in the fourth quarter were $503.4 million, which surpassed the Zacks Consensus Estimate by 0.81%. The top line rose 15.1% from the year-ago quarter’s number, driven by the 53rd week, Adjusted Comparable Store Sales Growth and new store sales.

In the fourth quarter, comparable store sales grew 6.6% year over year. Adjusted comparable store sales growth was 4.8%. National Vision opened 12 new stores and closed four America’s Best stores, ending the quarter with 1,250 stores. Overall, the store count rose 0.8% year over year.

For the full year, the company’s revenues totaled $1.99 billion, up 9% year over year and also beat the Zacks Consensus Estimate by 0.5%.

Following the earnings announcement yesterday, EYE shares rose 9.1%, closing the session at $29.04.

National Vision’s Q4 Margin Performance

On a consolidated basis, the gross profit in the fourth quarter rose 16% from the prior-year quarter’s level to $292.7 million. The gross margin expanded 45 basis points (bps) to 58.1% despite a 13.9% rise in the cost of revenues (comprising products, services and plans).

National Vision Holdings, Inc. Price, Consensus and EPS Surprise

National Vision Holdings, Inc. price-consensus-eps-surprise-chart | National Vision Holdings, Inc. Quote

SG&A expenses increased 12.1% year over year to $261.2 million. The adjusted operating margin was 6.3%, which expanded 186 bps year over year.

EYE’s Financial Position

National Vision exited the fourth quarter of 2025 with cash and cash equivalents of $38.7 million compared with $73.9 million at the end of 2024.

The cumulative net cash flow from operating activities at the end of the quarter was $146.3 million compared with $133.6 million a year ago.

National Vision’s 2026 View

National Vision provided its outlook for the 52 weeks ending Jan. 2, 2027.

Net revenues are projected in the range of $2.033 billion-$2.091 billion. The Zacks Consensus Estimate for the metric is currently pegged at $2.06 billion.

Adjusted EPS is estimated to be between 85 cents and $1.09. The Zacks Consensus Estimate is currently pegged at 90 cents.

Our Take on National Vision

National Vision ended the fourth quarter of 2025 with better-than-expected earnings and revenues.  The company saw traffic growth in its three customer cohorts — managed care, progressive and outside Rx customers — along with strong average ticket growth. Expansion of both margins is also highly encouraging.

In 2025, the number of exams performed by the doctor network increased over the last year, while metrics across ticket, NPS and conversion improved, contributing to profit expansion. National Vision also made significant progress in its lens leadership initiative, growing in key lens products like anti-reflective coating, advanced materials, Transitions and progressives.The company has multiple frame launches lined up this year, including a range of sought-after premium fast fashion and lifestyle brands like Burberry, True Religion, kate spade, Polo Ralph Lauren and Costa at America’s Best.

EYE’s Zacks Rank and Other Key Picks

National Vision currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks from the broader medical space are Intuitive Surgical ISRG, Cardinal Health CAH and Align Technology ALGN.

Intuitive Surgical, currently sporting a Zacks Rank #1 (Strong Buy), reported a fourth-quarter 2025 adjusted EPS of $2.53, which surpassed the Zacks Consensus Estimate by 12.4%. Revenues of $2.87 billion beat the Zacks Consensus Estimate by 4.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.

ISRG has an estimated long-term earnings growth rate of 15.7% compared with the industry’s 12.7% growth. The company beat earnings estimates in each of the trailing four quarters, the average surprise being 13.24%.

Cardinal Health, carrying a Zacks Rank #2 at present, posted a second-quarter fiscal 2026 adjusted EPS of $2.63, exceeding the Zacks Consensus Estimate by 10%. Revenues of $65.6 billion topped the Zacks Consensus Estimate by 0.9%.

CAH has a long-term earnings growth rate of 15% compared with the industry’s 9.6% growth. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 9.3%.

Align Technology, carrying a Zacks Rank #2 at present, posted a fourth-quarter 2025 adjusted EPS of $3.29, exceeding the Zacks Consensus Estimate by 10.1%. Revenues of $1.05 billion outperformed the Zacks Consensus Estimate by 5.3%.

ALGN has an estimated long-term earnings growth rate of 10.1% compared with the industry’s 9.5% growth. The company’s earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 6.16%.

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This article originally published on Zacks Investment Research (zacks.com).

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