US Foods Reports Q3 FY2026 Earnings & Tightens Full-Year Guidance

US Foods Holding Corp. (NYSE: USFD) Q3 FY2026 Earnings Summary

Financial Performance

• Net Sales: Rose 2.1% year-over-year to $10.4 billion, supported by a 1.3% increase in total case volume and food cost inflation of 0.4%.
• Gross Profit: Reached $1.9 billion (+8.6% YoY), driven by volume growth, improved cost of goods sold, and a $49 million favorable LIFO adjustment. Adjusted Gross Profit grew 5.7% to $1.9 billion.
• Operating Expenses: Increased 4.2% YoY to $1.5 billion due to higher distribution, selling, and administrative costs, partially offset by administrative cost streamlining.
• Net Income & EPS: Net income increased 42.5% to $218 million (margin of 2.1%, up 60 bps). Diluted EPS reached $1.00 (+49.3% YoY).
• Adjusted Metrics: Adjusted EBITDA increased 9.9% to $555 million (Adjusted EBITDA margin expanded 38 bps to 5.3%). Adjusted Diluted EPS rose 17.8% to $1.26.

Operational & Segment Highlights

• Case Volume: Total case volume increased 1.3% (organic +1.2%). Growth was led by independent restaurants (+5.0%), healthcare (+3.3%), and hospitality (+3.7%), offset by a 1.5% decrease in chain volume.
• Market Share: Extended independent restaurant market share gains to 22 consecutive quarters and healthcare to 24 consecutive quarters.

Balance Sheet, Cash Flow & Capital Allocation

• Operating Cash Flow: Generated $1,160 million in operating cash flow over the first nine months of FY2026 compared to $1,076 million in the prior-year period.
• Capital Expenditures: Cash capex totaled $266 million year-to-date.
• Net Debt & Leverage: Net Debt stood at $5.1 billion, with the Net Debt to Adjusted EBITDA leverage ratio declining to 2.4x from 2.7x at the end of FY2025.
• Share Repurchases: Repurchased $191 million of common stock in Q3 ($690 million YTD), leaving $450 million remaining under the authorized share repurchase program.
• M&A: Closed the acquisition of Prime Line Distributors, an independent specialty Italian food distributor based in Fort Lauderdale, Florida.

Updated FY2026 Guidance

US Foods tightened its full-year guidance ranges to reflect sustained macroeconomic softness and elevated fuel costs:

• Net Sales Growth: 4% to 5% (previously 4% to 6%)
• Adjusted EBITDA Growth: 9% to 11% (previously 9% to 13%)
• Adjusted Diluted EPS Growth: 18% to 20% (previously 18% to 24%)
• Note: Guidance accounts for an extra (53rd) operating week in FY2026, which is projected to add roughly 1% to total case and Adjusted EBITDA growth.