US Foods Narrows Fiscal 2026 Outlook After Slower Sales

The Tip Desk · November 5, 2026 · 3 min read

Net sales rose 2.1% to $10.4 billion as the distributor cut the top of its full-year sales, EBITDA and EPS growth ranges.

US Foods Holding Corp. (USFD) reported net sales of $10.4 billion for the third quarter of fiscal 2026, up 2.1% from a year earlier, and tightened its full-year outlook after a slower macroeconomic environment and elevated fuel costs.

The foodservice distributor had previously guided to 4% to 6% net sales growth for the year. It now expects 4% to 5%. Adjusted EBITDA growth is now seen at 9% to 11%, down from 9% to 13%, and adjusted diluted EPS growth at 18% to 20%, down from 18% to 24%. The company said the updated ranges include a 53rd week expected to add about 1% to total case growth and Adjusted EBITDA growth.

Sales growth had been 4.5% in the second quarter. Food cost inflation slowed to 0.4% from 2.3% in that prior quarter. Total case volume rose 1.3%.

Independent restaurant case volume increased 5.0%, matching the 5.0% organic independent restaurant gain the company cited. Healthcare volume rose 3.3% and hospitality 3.7%. Chain volume declined 1.5%. Chief Executive Dave Flitman said the company extended its track record of share gains to 22 consecutive quarters with independent restaurants and 24 consecutive quarters with healthcare.

Gross profit was $1.9 billion, up 8.6%, or $151 million, from the year-ago quarter. The company said the increase came primarily from higher total case volume, improved cost of goods sold, and a $49 million favorable year-over-year LIFO adjustment. Gross profit as a percentage of net sales was 18.3%. Adjusted gross profit, which excludes LIFO reserve adjustments, was $1.9 billion.

Operating expenses were $1.5 billion. Adjusted operating expenses were $1.3 billion. Net income was $218 million, up 42.5% from $153 million a year earlier, and the net income margin was 2.1%. Diluted earnings were $1.00 a share.

Adjusted EBITDA was $555 million, up 9.9% from $505 million a year earlier, after a record 10.2% increase to $604 million in the second quarter. Adjusted EBITDA margin was 5.3%. Adjusted diluted EPS was $1.26.

Cash flow from operations for the first nine months of fiscal 2026 was $1,160 million, compared with $1,076 million a year earlier. Cash capital expenditures for the same nine months were $266 million. Net debt at quarter-end was $5.1 billion, and the ratio of net debt to Adjusted EBITDA was 2.4 times.

During the quarter the company repurchased $191 million of common stock. For the first nine months it repurchased $690 million, inclusive of fees, commissions and related excise tax. Remaining authorization under the November 2025 program was $450 million.

Subsequent to quarter-end, US Foods closed its acquisition of Prime Line Distributors, an independent specialty food distributor of gourmet Italian products based in Fort Lauderdale, Florida. Flitman said the deal broadens specialty and imported assortment and adds capabilities to Pronto and the broadline business.