Performance Food Group Company (NYSE:PFGC) posted better-than-expected fiscal first-quarter 2026 results on Wednesday, delivering double-digit revenue growth and higher profitability — yet its shares slipped 2.07% in premarket trading as investors focused on higher expenses and lower net income.
The foodservice distribution company reported adjusted earnings of $1.18 per share, topping the consensus estimate of $1.12, while revenue climbed 10.8% year-over-year to $17.1 billion, ahead of forecasts for $16.87 billion.
Total case volume rose 9.4% from a year earlier, fueled by a 16.6% jump in independent foodservice case volume. On an organic basis, independent case volume grew 6.3%, underscoring strong momentum in the company’s core operations. Gross profit increased 14.3% to $2.0 billion, while adjusted EBITDA grew 16.6% to $480.1 million.
“Our organization began fiscal 2026 with strong results, building upon our momentum and finishing the quarter with solid sales growth and share gains,” said George Holm, Chairman and CEO of Performance Food Group.
However, net income fell 13.3% to $93.6 million, as operating expenses rose 15.7% to $1.8 billion. The company cited higher personnel costs, legal expenses related to shareholder activity, and acquisition-related spending as the main drivers.
Looking ahead, PFGC expects second-quarter net sales of $16.4–$16.7 billion and adjusted EBITDA between $450–$470 million. For the full fiscal year, it raised its revenue outlook to $67.5–$68.5 billion, up from a previous range of $67–$68 billion, while maintaining adjusted EBITDA guidance of $1.9–$2.0 billion.
By segment, Foodservice revenue jumped 18.8% to $9.1 billion, Convenience sales grew 3.5% to $6.6 billion, and Specialty sales edged down 0.7% to $1.3 billion.
Despite the solid top-line growth and improved profitability, the stock’s decline suggests investors remain cautious about rising costs and margin pressures heading into the next quarter.