US Foods Holding Corp. (USFD): Results of Operations and Financial Condition
US Foods Holding Corp. (USFD) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 INVESTOR CONTACT: MEDIA CONTACT: Mike Neese Sara Matheu (847) 232-5894 (773) 580-3775 Michael.Neese@usfoods.com Sara.Matheu@usfoods.com US Foods Reports Second Quarter Fiscal Year 2026 Earnings Grew Net Sales 4.5% to $10.5 Billion, Net Income 22.8% to $275 Million an
How this was made
The 30-second read
Why it matters
Traders can update models and expectations using the reported Q2 operating metrics, capital allocation (repurchases), leverage (net debt/EBITDA), and the reaffirmed FY2026 guidance ranges.
Market read
Q2 results and reaffirmed FY2026 guidance provide a direct catalyst for USFD positioning, with margin expansion and independent restaurant volume growth as key themes.
What to watch
Investors may discount non-GAAP performance and scrutinize the drivers of margin expansion (LIFO adjustment, cost productivity) for durability into the back half of FY2026.
US Foods Reports Second Quarter Fiscal Year 2026 Earnings Grew Net Sales 4.5% to $10.5 Billion, Net Income 22.8% to $275 Million and Diluted EPS 29.2% to $1.24
Net sales, volume, gross profit, net income, diluted EPS and Adjusted EBITDA all increased, with margin expansion and reaffirmed Fiscal Year 2026 guidance.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total case volumeother | increased 1.9% | – | increased 1.9% |
| Independent restaurant case volumeother | increased 5.1% | – | increased 5.1% |
| Healthcare volumeother | increased 3.5% | – | increased 3.5% |
| Hospitality volumeother | increased 4.4% | – | increased 4.4% |
| Chain volumeother | decreased 1.5% | – | decreased 1.5% |
| Total organic case volumeother | increased 1.7% | – | increased 1.7% |
| Organic independent restaurant case volumeother | 5.0% organic independent restaurant case volume growth | – | 5.0% organic independent restaurant case volume growth |
| Net salesGAAP | $10.5 billion | – | increased 4.5% |
| Food cost inflationother | 2.3% | – | – |
| Gross profitGAAP | $1.9 billion | – | increased by $142 million, or 8.0% |
| Gross profit as a percentage of Net salesGAAP | 18.2% | – | – |
| Adjusted Gross profitnon-GAAP | $1.9 billion | – | an increase of $123 million, or 6.9% |
| Adjusted Gross profit as a percentage of Net salesnon-GAAP | 18.2% | – | – |
| Operating expensesGAAP | $1.5 billion | – | increased by $71 million, or 5.1% |
| Operating expenses as a percentage of Net salesGAAP | 14.0% | – | – |
| Adjusted Operating expensesnon-GAAP | $1.3 billion | – | an increase of $68 million, or 5.5% |
| Adjusted Operating expenses as a percentage of Net salesnon-GAAP | 12.5% | – | – |
| Net incomeGAAP | $275 million | – | increased by $51 million, or 22.8% |
| Net income marginGAAP | 2.6% | – | an increase of 39 basis points |
| Adjusted EBITDAnon-GAAP | $604 million | – | increased by $56 million, or 10.2% |
| Adjusted EBITDA marginnon-GAAP | 5.7% | – | an increase of 29 basis points |
| Diluted EPSGAAP | $1.24 | – | increased 29.2% |
| Adjusted Diluted EPSnon-GAAP | $1.44 | – | increased 21.0% |
| Cash flow provided by operating activitiesGAAP | $725 million | – | – |
| Cash capital expendituresother | $174 million | – | an increase of $13 million |
| Net Debtother | $5.2 billion | – | – |
| Ratio of Net Debt to Adjusted EBITDAother | 2.6x | – | – |
Fiscal Year 2026 outlook
- RevenueNet Sales growth of 4% to 6%
- NoteAdjusted EBITDA growth of 9% to 13%
- NoteAdjusted Diluted EPS growth of 18% to 24%
- NoteThe guidance provided above includes the impact of a 53rd week in fiscal year 2026, which is expected to add approximately 1% to total case growth and Adjusted EBITDA growth.
Capital returns
- During the second quarter of fiscal year 2026, the Company repurchased 4.4 million shares of common stock for $374 million.
- For the first six months of fiscal year 2026 repurchased 5.8 million shares of common stock for approximately $500 million, inclusive of fees, commissions, and any related excise tax.
- The Company had $640 million in remaining funds authorized under the November 2025 share repurchase program.
What drove it
- Net sales growth was driven by case volume growth and food cost inflation of 2.3%.
- Gross profit increased primarily as a result of an increase in total case volume, improved cost of goods sold, and a $19 million favorable year-over-year LIFO adjustment.
- Operating expenses increased primarily as a result of an increase in total case volume and higher distribution, selling and administrative costs, partially offset by actions to streamline administrative processes and costs.
- Independent restaurant, healthcare and hospitality volumes increased.
Concerns
- Chain volume decreased 1.5%.
- Operating expenses increased by $71 million, or 5.1%.
- Higher net income in the current period was offset by favorable changes in operating assets and liabilities in the prior comparative period.
- The company cited a challenging but stable industry environment.
What to watch
- Independent restaurant case volume growth and total case volume growth.
- Sustainability of gross-profit and Adjusted EBITDA margin expansion.
- Food cost inflation and the impact of the $19 million favorable year-over-year LIFO adjustment.
- Execution against reaffirmed Fiscal Year 2026 guidance, including the expected impact of a 53rd week.
- Further share repurchases under the remaining $640 million authorization.
Balance sheet and cash flow
- Cash flow provided by operating activities for the first six months of fiscal year 2026 and 2025 was $725 million.
- Cash capital expenditures for the first six months of fiscal year 2026 totaled $174 million, an increase of $13 million from the prior year.
- Net Debt at the end of the second quarter of fiscal year 2026 was $5.2 billion.
- The ratio of Net Debt to Adjusted EBITDA was 2.6x at the end of the second quarter of fiscal year 2026, compared to 2.7x at the end of fiscal year 2025.
Analysis
US Foods reported broad second-quarter growth, with net sales of $10.5 billion, up 4.5%, supported by total case-volume growth of 1.9% and food cost inflation of 2.3%. Independent restaurant case volume accelerated to 5.1%, while healthcare and hospitality volume increased 3.5% and 4.4%, respectively. Chain volume decreased 1.5%, making that customer category the principal volume offset cited in the release.
Management, verbatim
Our team delivered another strong quarter, highlighted by accelerating volume growth, record Adjusted EBITDA and Adjusted EBITDA margin and strong Adjusted EPS growth in what remains a challenging but stable industry environment.
Dave Flitman, Chair of the Board and CEO
We expanded margins again this quarter through a combination of volume growth, gross profit gains and cost productivity improvements.
Dirk Locascio, CFO
Not in the filing
stated, not guessed- Period-end date
- Segment revenue by customer type or operating segment
- GAAP operating income
- GAAP operating margin
- Prior-year net sales amount
- Prior-year gross profit amount
- Prior-year operating expenses amount
- Prior-year net income amount
- Prior-year diluted EPS amount
- Prior-year Adjusted EBITDA amount
- Prior-year Adjusted Diluted EPS amount
- Cash balance
- Gross debt balance
- Free cash flow
- Quarterly operating cash flow
- Quarterly capital expenditures
- Dividend information
- Forward guidance for gross margin, operating expenses and tax rate
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is an SEC Form 8-K (Item 2.02) with the company’s Q2 FY2026 earnings release and financial condition details.
Ticker impact
US Foods reported Q2 FY2026 results with net sales up 4.5% to $10.5B, adjusted EBITDA up 10.2% to $604M, and reaffirmed FY2026 guidance.
Likely positive bias for the stock as investors weigh margin expansion, record adjusted EBITDA, and reaffirmed growth guidance.
The filing includes multiple quantified beats versus the prior year (sales, net income, adjusted EBITDA, EPS) and reiterates FY2026 net sales, adjusted EBITDA, and adjusted EPS growth ranges, alongside active repurchases and stable leverage (2.6x).
Market effects
Foodservice distribution demand and margin trends are reinforced by independent restaurant case volume growth and cost productivity commentary.
Primarily US-focused foodservice distribution read-through for domestic consumer and restaurant activity.
Limited direct global impact; mostly relevant to US foodservice supply chain expectations.
Counterpoint
Despite strong adjusted metrics, the company still flags a “challenging but stable” industry, so the market may focus on sustainability of volume growth and food-cost inflation.
Key entities
- public_companyUS Foods Holding Corp.
Reported Q2 FY2026 results, record adjusted EBITDA, share repurchases, and reaffirmed FY2026 guidance.
- executiveDave Flitman
CEO and Chair, cited accelerating volume growth and confidence in share gains and cash flow.
- executiveDirk Locascio
CFO, discussed margin expansion and capital allocation/leverage.
