Fourth-quarter and full-year fiscal 2026
Filed Aug 12, 2026Performance Food Group Company Reports Fourth-Quarter and Full-Year Fiscal 2026 Results Strong Independent Case Volume and Cash Flow Generation; Announces Full-Year 2027 Financial Guidance
Fourth-quarter net sales, gross profit, net income, Adjusted EBITDA, and total case volume all increased, supported by independent Foodservice growth, favorable mix, acquisitions, and inflation-driven pricing. Full-year operating cash flow and free cash flow also increased materially.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Fourth-quarter total case volumeother | 3.5% | – | increased 3.5% |
| Fourth-quarter total organic case volumeother | 1.8% | – | increased 1.8% |
| Fourth-quarter total Independent Foodservice case volumeother | 8.0% | – | increased 8.0% |
| Fourth-quarter organic Independent Foodservice case volumeother | 5.8% | – | increased 5.8% |
| Fourth-quarter net salesGAAP | $18.0 billion | – | increased 6.4% |
| Fourth-quarter gross profitGAAP | $2.2 billion | – | improved 8.3% |
| Fourth-quarter operating expensesGAAP | $1.8 billion | – | rose 6.4% |
| Fourth-quarter net incomeGAAP | $162.3 million | – | increased 23.4% |
| Fourth-quarter effective tax rateGAAP | approximately 26.8% | – | – |
| Fourth-quarter Adjusted EBITDAnon-GAAP | $587.5 million | – | rose 7.4% |
| Fourth-quarter diluted EPSGAAP | $1.03 per share | – | increased 22.6% |
| Fourth-quarter Adjusted Diluted EPSnon-GAAP | $1.59 per share | – | increased 2.6% |
| Fiscal 2026 total case volumeother | 5.1% | – | increased 5.1% |
| Fiscal 2026 total organic case volumeother | 2.8% | – | increased 2.8% |
| Fiscal 2026 total Independent Foodservice case volumeother | 10.2% | – | increased 10.2% |
| Fiscal 2026 organic Independent Foodservice case volumeother | 5.9% | – | increased 5.9% |
| Fiscal 2026 net salesGAAP | $67.8 billion | – | grew 7.2% |
| Fiscal 2026 gross profitGAAP | $8.1 billion | – | grew 9.1% |
| Fiscal 2026 operating expensesGAAP | $7.2 billion | – | rose 9.1% |
| Fiscal 2026 net incomeGAAP | $359.3 million | – | increased 5.6% |
| Fiscal 2026 effective tax rateGAAP | approximately 26.0% | – | – |
| Fiscal 2026 Adjusted EBITDAnon-GAAP | $1,929.4 million | – | increased 9.2% |
| Fiscal 2026 diluted EPSGAAP | $2.29 per share | – | increased 5.0% |
| Fiscal 2026 Adjusted Diluted EPSnon-GAAP | $4.55 per share | – | increased 1.6% |
| Fiscal 2026 operating cash flowGAAP | $1,413.7 million | – | – |
| Fiscal 2026 capital expendituresother | $384.1 million | – | a decrease of $121.9 million versus the prior year |
| Fiscal 2026 free cash flownon-GAAP | $1,029.6 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| FoodserviceRecent acquisitions, an increase in selling price per case as a result of inflation, and organic case volume growth. | $9.8 billion | – | increased 6.8% |
| ConvenienceCase volume. | $6.8 billion | – | increased 5.7% |
Capital returns
- During the quarter ended June 27, 2026, the Company repurchased and subsequently retired less than 0.1 million shares of common stock, for a total of $0.3 million or an average cost of $83.18 per share.
- During the fiscal year ended June 27, 2026, the Company repurchased and subsequently retired less than 0.1 million shares of common stock, for a total of $1.5 million or an average cost of $83.12 per share.
- As of June 27, 2026, $498.5 million remained available for share repurchases.
- The current share repurchase program has an expiration date of May 27, 2029.
What drove it
- Fourth-quarter net sales growth was primarily driven by an increase in selling price per case as a result of inflation, an increase in organic cases sold, including a favorable shift in mix of cases sold, and recent acquisitions.
- Overall product cost inflation for the Company was approximately 4.7% for the fourth quarter of fiscal 2026 and approximately 4.5% for fiscal 2026.
- Fourth-quarter gross profit growth reflected growth and mix of cases sold, including growth in the independent channel, recent acquisitions, and vendor rebates and promotional incentives.
- Independent sales as a percentage of total Foodservice sales were 43.1% for the fourth quarter of fiscal 2026.
- Foodservice gross profit contributing to Adjusted EBITDA increased 7.8%, driven by favorable case mix, including more Performance Brands products sold to independent customers, recent acquisitions, and case growth.
- Fiscal 2026 operating cash flow benefited from higher cash-based operating income and income tax refunds of $52.3 million.
Concerns
- Fourth-quarter operating expenses rose 6.4% to $1.8 billion, driven by acquisitions, fuel expense, personnel expenses, and depreciation and amortization.
- Fiscal 2026 operating expenses rose 9.1% to $7.2 billion, including personnel costs, acquisition costs, depreciation and amortization, fuel, legal and professional fees related to shareholder activism and the clean team agreement with US Foods Holding Corp., and insurance expense.
- The fourth-quarter effective tax rate was approximately 26.8% compared to 25.6% in the fourth quarter of fiscal 2025.
- Advanced purchases of inventory to take advantage of preferred pricing partially offset the increase in fiscal 2026 operating cash flow.
- Foodservice Adjusted EBITDA increased 2.2%, while operating expenses impacting Foodservice Adjusted EBITDA increased 9.9%.
What to watch
- Total independent case volume increased 8.0% in the fourth quarter and 10.2% in fiscal 2026.
- Organic independent case volume increased 5.8% in the fourth quarter and 5.9% in fiscal 2026.
- The balance between selling-price growth from inflation and organic case-volume growth.
- Operating-expense pressure from wages, commissions, fuel, insurance, depreciation and amortization, and acquisitions.
- Execution of the share repurchase program, with $498.5 million remaining available as of June 27, 2026.
Balance sheet and cash flow
- In fiscal 2026, PFG provided $1,413.7 million in cash flow from operating activities compared to $1,210.1 million in cash flow from operating activities in the prior year.
- In fiscal 2026, PFG invested $384.1 million in capital expenditures, a decrease of $121.9 million versus the prior year.
- In fiscal 2026, PFG delivered free cash flow of $1,029.6 million compared to free cash flow of $704.1 million in the prior year.
Analysis
PFG closed fiscal 2026 with broad fourth-quarter growth. Net sales increased 6.4% to $18.0 billion, gross profit improved 8.3% to $2.2 billion, net income increased 23.4% to $162.3 million, and Adjusted EBITDA rose 7.4% to $587.5 million. Total case volume increased 3.5%, while total Independent Foodservice case volume increased 8.0% and organic independent case volume increased 5.8%, demonstrating stronger growth in the independent channel than total volume growth.
The sales result reflected both price and volume. Management cited an increase in selling price per case due to inflation, organic cases sold, favorable case mix, and recent acquisitions. Overall product cost inflation was approximately 4.7% in the fourth quarter. Gross profit grew faster than sales, aided by the independent channel, which generates higher gross profit because of additional services, acquisitions, vendor rebates, and promotional incentives. Foodservice independent sales represented 43.1% of total Foodservice sales, and Foodservice gross profit contributing to Adjusted EBITDA increased 7.8%.
Expense growth remained a key offset. Fourth-quarter operating expenses rose 6.4% to $1.8 billion, while Foodservice operating expenses impacting Adjusted EBITDA increased 9.9%. The company cited acquisition-related costs, higher fuel prices and miles driven, personnel expenses, insurance, and depreciation and amortization. The fourth-quarter effective tax rate increased to approximately 26.8% from 25.6%. These expense and tax items help explain why Adjusted Diluted EPS increased 2.6%, less than the 22.6% increase in GAAP diluted EPS.
For fiscal 2026, net sales grew 7.2% to $67.8 billion and Adjusted EBITDA increased 9.2% to $1,929.4 million. Cash generation strengthened, with operating cash flow of $1,413.7 million and free cash flow of $1,029.6 million, compared with $1,210.1 million and $704.1 million, respectively, in the prior year. Capital expenditures were $384.1 million, a decrease of $121.9 million versus the prior year. The company repurchased $1.5 million of stock during the fiscal year and had $498.5 million remaining under its authorization. Although the release announces full-year fiscal 2027 guidance, the supplied filing text does not include the numerical outlook, preventing an assessment of the guide or a comparison with prior guidance. Prior-quarter figures were also not supplied.
Management, verbatim
Our solid execution throughout the year produced a strong finish to fiscal 2026. Consistent market share gains across our business units translated into strong revenue growth and record-setting EBITDA results. We enter fiscal 2027 with significant momentum, reflected in the outlook we are providing today. I want to thank PFG associates across the Company for making these results possible and positioning us for another strong year ahead.
Scott McPherson, President & Chief Executive Officer
Not in the filing
stated, not guessed- Full-year fiscal 2027 numerical guidance, including revenue, gross margin, operating expenses, tax rate, earnings, Adjusted EBITDA, cash flow, capital expenditures, and other guided metrics
- Previous-quarter outlook needed to compare reported results with prior guidance
- Fourth-quarter and fiscal 2026 GAAP gross margin
- Fourth-quarter and fiscal 2026 GAAP operating income
- Fourth-quarter operating cash flow, free cash flow, and capital expenditures
- Cash, cash equivalents, total debt, and net debt
- Dividend information
- Absolute prior-year amounts for reported fourth-quarter and fiscal 2026 net sales, gross profit, operating expenses, net income, Adjusted EBITDA, diluted EPS, Adjusted Diluted EPS, and case-volume metrics where only a change or dollar increase was provided
- Prior-quarter amounts and quarter-over-quarter changes for reported metrics
- Convenience segment case-volume, profitability, and full driver disclosure because the supplied filing text ends during the Convenience segment discussion
- Other segment results, if any, beyond the portion of Foodservice and Convenience results included in the supplied text
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.