Performance Food Group Company (PFGC) Q3 2026 earnings summary

Executive summary

• Net sales for Q3 rose 6.4% year-over-year to $16.3 billion, driven by higher case volume, favorable product mix, and inflationary pricing, with all segments showing resilience and growth momentum expected to continue into fiscal 2027.

• Net income for the quarter was $41.7 million, down 28.5% year-over-year due to higher operating and interest expenses.

• Adjusted EBITDA for the quarter was $410.6 million, up 6.6% year-over-year, supported by investments in technology, infrastructure, and talent.

• For the first nine months, net sales grew 7.4% to $49.81 billion, and Adjusted EBITDA rose 10.0% to $1.34 billion.

• Diversification across the food away from home market and strong execution led to sustained market share gains, especially among independent restaurants.

Financial highlights

• Total net sales grew 6.4% year-over-year in Q3, with all segments contributing; Convenience segment led growth.

• Total company cases increased 4.4%, with 6.5% organic independent restaurant case growth and 8.3% organic case gain in Convenience.

• Gross profit for Q3 increased 6.4% to $1.94 billion, while operating expenses rose 8.6% due to higher personnel, acquisition, and fuel costs.

• Adjusted EBITDA rose 6.6% to $410.6 million; adjusted diluted EPS increased 1.3% to $0.80.

• Operating cash flow for the nine months was $1.07 billion, up $245 million year-over-year; free cash flow reached $806 million.

Outlook and guidance

• Fiscal 2026 sales guidance narrowed to $67.7–$68 billion; adjusted EBITDA guidance set at $1.9–$1.93 billion.

• On track for three-year targets: $73–$75 billion in sales and $2.3–$2.5 billion adjusted EBITDA by fiscal 2028.

• Management expects continued sales and profit growth into fiscal 2027, citing momentum, expense normalization, procurement synergies, and new business wins.

• Expect low to mid-single-digit inflation for the remainder of fiscal 2026.

• Ongoing macroeconomic and geopolitical uncertainties include fuel price volatility and tariff policy changes.