A positioning grid is a key clamping structure for fixing the transverse and axial positions of fuel assemblies in nuclear reactors, and it is generally prepared by the transverse stamping of a Zr-4 sheet. However, the texture formed in the processing process of Zr-4 sheets can affect formability, resulting in cracking in the stamping process. Therefore, the relationship between the formability of Zr-4 sheets and the normal Kearns factor (Fn) of basal texture was studied in this paper. The results showed that the Zr-4 sheet with an Fn equaling 0.720, prepared by an isobaric reduction rolling process, would crack in the stamping process. To avoid the cracking during stamping, the formability improvement of Zr-4 sheets based on texture optimization was discussed. By using the finite element model (FEM) and a visco plastic self-consistent (VPSC) model coupled simulation, the relationship between the initial textures and formabilities of Zr-4 sheet is established. It is found that the hardening exponents (n) decreased with increasing Fns in VPSC simulations. Meanwhile, as the Fn increases, cracks are prone to occur at the bottom corner of the stamped sheet in finite element simulation. Given the results from FEM and VPSC simulations, it is proposed that the Fn should be controlled to be less than 0.7 for preventing cracks in the sheet during stamping. Additionally, a new rolling process named non-isobaric reduction rolling was designed in which the Fn of the Zr-4 sheet is successfully reduced to 0.690. The stamping results indicate that the sheet is free of cracks under an Fn of 0.690. Therefore, texture optimization with the proposed rolling process can improve the formability of Zr-4 sheets, which effectively solves the cracking problem of Zr-4 sheets.