US Foods Holding Corp. (NYSE:USFD) reported fiscal first-quarter 2026 results on Thursday that came in below Wall Street expectations, sending shares down 3.93% in premarket trading.
The foodservice distribution company posted adjusted earnings of $0.78 per share, missing the analyst consensus estimate of $0.81 by $0.03.
Revenue rises but falls short of forecasts
Quarterly revenue totaled $9.61 billion, slightly below analyst expectations of $9.64 billion, though still representing year-over-year growth of 2.8%.
The increase in sales was supported by 1.4% growth in case volume along with 1.0% food cost inflation.
Independent restaurant case volume increased 4.6% during the quarter, while healthcare and hospitality volumes rose 3.7% and 5.0%, respectively.
Profitability improves despite margin pressure
Net income edged up 0.9% to $116 million.
Adjusted EBITDA increased 6.2% year-over-year to $413 million, while adjusted EBITDA margin expanded by 14 basis points to 4.3%.
The company said a $33 million unfavorable year-over-year LIFO adjustment weighed on gross profit growth.
Gross profit rose 2.4% to $1.7 billion during the quarter.
CEO points to market share gains and resilient demand
“During the first quarter, we accelerated year-over-year independent restaurant case growth, gained share with our target customer types and delivered 15% Adjusted Diluted EPS growth despite a deteriorating macro environment and weather-related disruptions,” said Dave Flitman, CEO.
Share repurchases continue as guidance remains unchanged
US Foods repurchased $125 million worth of shares during the quarter.
The company also maintained a net debt-to-adjusted EBITDA ratio of 2.6x, improving from 2.7x at the end of fiscal 2025.
US Foods reaffirmed its fiscal 2026 outlook, projecting net sales growth of 4% to 6%.
The company also maintained guidance for adjusted EBITDA growth of 9% to 13% and adjusted diluted EPS growth of 18% to 24%.
The midpoint of the adjusted EPS growth outlook, at 21%, aligns with the company’s long-term financial targets.
More about US Foods
US Foods is one of the largest foodservice distributors in the United States, supplying restaurants, healthcare facilities, hospitality businesses, and other foodservice operators. The company provides food products, kitchen supplies, and logistics services through a nationwide distribution network.