Performance Food Group Company (PFGC) Q2 2026 earnings summary

Executive summary

• Net sales for the quarter ended December 27, 2025, increased 5.2% year-over-year to $16.44 billion, driven by higher case volume, favorable mix, and inflation-driven price increases.

• Net income rose 45.5% to $61.7 million for the quarter, with diluted EPS up to $0.39 from $0.27 year-over-year.

• Adjusted EBITDA for the quarter was $451.2 million, up 6.7% from the prior year; Adjusted Diluted EPS was $0.98, flat year-over-year.

• The Cheney Brothers acquisition contributed significantly to Foodservice segment growth and overall results.

• Leadership transition as George Holm retires as CEO, succeeded by Scott McPherson, with Holm remaining as Executive Chair to focus on M&A and strategy.

Financial highlights

• Gross profit increased 7.6% to $2.0 billion for the quarter, with gross profit per case up $0.20 year-over-year.

• Operating expenses rose 6.4% to $1.78 billion, mainly due to higher personnel costs, increased depreciation/amortization, and legal/professional fees.

• Interest expense increased to $104.5 million, reflecting higher average borrowings and finance lease obligations.

• For the six months, net sales grew 7.9% to $33.52 billion, and net income was $155.3 million, up 3.3% year-over-year.

• Operating cash flow for the first six months was $456 million, up $77 million year-over-year; free cash flow was $263.7 million, up $89 million.

Outlook and guidance

• Q3 2026 guidance: net sales of $16.0–$16.3 billion and adjusted EBITDA of $390–$410 million.

• Full-year 2026 guidance: net sales of $67.25–$68.25 billion and adjusted EBITDA of $1.875–$1.975 billion, both slightly narrowed from prior guidance.

• Three-year projections reaffirmed: sales of $73–$75 billion and adjusted EBITDA of $2.3–$2.5 billion by fiscal 2028.

• Management expects continued benefit from recent acquisitions, organic case growth, and inflation-driven pricing.

• The company anticipates sufficient liquidity and cash flow to meet operational and capital needs over the next 12 months.