United Natural Foods Inc. (NYSE:UNFI) reported fiscal second-quarter 2026 results that exceeded profit forecasts but came in below analyst expectations on revenue.
Shares of the grocery wholesaler rose 0.41% in pre-market trading following the announcement.
The company posted adjusted earnings per share of $0.62, surpassing the analyst consensus estimate of $0.51 by $0.11. Revenue, however, declined 2.6% year over year to $7.95 billion, missing the $8.11 billion forecast and down from $8.16 billion in the same quarter last year.
UNFI said the revenue decline included an impact of nearly 500 basis points related to optimization initiatives, largely tied to the planned transition away from its distribution center in Allentown, Pennsylvania.
Adjusted EBITDA increased 23.4% to $179 million, up from $145 million in the year-ago period. Net income reached $20 million, or $0.31 per diluted share, compared with a net loss of $3 million, or -$0.05 per diluted share, in the second quarter of fiscal 2025.
“In the second quarter, disciplined execution of our value creation strategy delivered growth in profitability and free cash flow ahead of our projections, which enabled us to further strengthen our balance sheet and increase our financial flexibility,” said Sandy Douglas, UNFI’s CEO.
The company also raised its full-year fiscal 2026 earnings outlook, now expecting adjusted EPS between $2.30 and $2.70. The midpoint of $2.50 is above the analyst consensus estimate of $2.18. However, UNFI reduced its revenue guidance to a range of $31.0 billion to $31.4 billion, with the midpoint of $31.2 billion below the consensus forecast of $31.93 billion.
Free cash flow for the quarter totaled $243 million, representing a 25.9% increase from $193 million in the same period last year. The company’s net leverage ratio improved to 2.7x, the lowest level since fiscal 2023. During the quarter, UNFI repurchased nearly 750,000 shares for approximately $25 million.