10-Q · May 6, 2026
Performance Food Group Company (PFGC) reported Q3 fiscal 2026 results, with net sales increasing by 6.4% year-over-year to $16.3 billion, and diluted EPS of $0.27, marking a 28.9% decline compared to the prior year's…
Earnings analysis · 10-K
PFGC earnings analysis
Filed August 12, 2026 · Our reading of the company's report
The latest report
Performance Food Group delivered improving fiscal 2026 operating momentum, with sales up 7.2%, case volume up 5.1%, Adjusted EBITDA up 9.2%, and diluted EPS recovering to $2.29 from $2.18. Foodservice, particularly the…
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Performance Food Group delivered improving fiscal 2026 operating momentum, with sales up 7.2%, case volume up 5.1%, Adjusted EBITDA up 9.2%, and diluted EPS recovering to $2.29 from $2.18. Foodservice, particularly the independent channel and Cheney Brothers contribution, drove most of the growth, while Convenience produced the strongest EBITDA growth. Cash generation and debt repayment improved, but thin operating margins, elevated interest costs, fuel-price sensitivity, and acquisition-related expense growth temper the outlook; the modest Q4 revenue and EPS misses also support a neutral rather than bullish stance.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $2.29
What stood out
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Broad-Based Revenue and Volume Growth
Net sales rose 7.2% to $67.8395 billion in fiscal 2026, while total case volume increased 5.1% and organic case volume increased 2.8%. Product-cost inflation was approximately 4.5%, indicating growth was supported by both volume and pricing.
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Scale and Independent-Channel Strategy
Management describes scale, Performance Brands, purchasing efficiencies, supply-chain capabilities, independent-customer expansion, geographic expansion, technology, and strategic acquisitions as core competitive advantages. Foodservice independent case growth was 10.2%, including 5.9% organic growth, and independent customers represented 42.1% of Foodservice sales.
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Foodservice Drives Growth
Foodservice remained the primary growth engine, with external sales of $36.5461 billion and Segment Adjusted EBITDA of $1,293.0 million. The Cheney Brothers acquisition contributed $3.7 billion of fiscal 2026 sales and $142.8 million of gross profit impacting Foodservice Adjusted EBITDA.
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Earnings Recovery Despite Thin Margins
Profitability improved from fiscal 2025: gross profit increased 9.1% to $8,090.6 million, operating profit increased 8.7% to $887.5 million, diluted EPS increased to $2.29 from $2.18, and Adjusted EBITDA increased 9.2% to $1,929.4 million. The improvement followed a fiscal 2025 decline in net income and EPS versus fiscal 2024.
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Stronger Cash Generation
Operating cash flow increased to $1,413.7 million from $1,210.1 million, and cash flow after property, plant and equipment purchases was approximately $1,029.6 million. Capital purchases declined to $384.1 million from $506.0 million, while net cash paid for acquisitions was $383.4 million versus $2.5964 billion in fiscal 2025.
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Debt Repaid; Buybacks Moderated
Capital allocation shifted toward debt reduction and balance-sheet management: the company repaid the $1.060 billion 2027 Notes and made $384.0 million of net ABL repayments, while issuing $1.060 billion of 5.625% Notes due 2034 to refinance the 2027 maturity. Only $1.5 million of stock was repurchased in fiscal 2026, leaving $498.5 million available under the $500 million authorization.
What to watch
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Fuel, Tariff, and Geopolitical Exposure
The filing identifies evolving tariffs, geopolitical events, and Middle East tensions as sources of uncertainty; it states that the conflict contributed to significantly higher fiscal 2026 fuel prices. A 10% increase in diesel prices would raise annual fuel costs by approximately $43.9 million before customer surcharges and derivative gains, while only about 5% of expected gallons were covered by collars as of June 27, 2026.
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Variable-Rate Debt and Interest Burden
Interest-rate sensitivity remains material despite hedging: assuming approximately $2.0 billion of average ABL borrowings, approximately $1.8 billion is variable-rate debt and a hypothetical 100-basis-point SOFR increase would raise annual interest expense by approximately $18.2 million. Total interest expense already increased 15.4% to $413.7 million in fiscal 2026.
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Acquisition and Execution Costs
Integration and operating leverage remain execution risks following acquisitions. Fiscal 2026 operating expenses increased $602.8 million, including $156.4 million related to Cheney Brothers, while Foodservice expenses increased $430.7 million, or 11.7%, against a 10.2% increase in total independent cases; the company also incurred $20.2 million of legal and professional fees related to shareholder activism and the US Foods clean team agreement.
Management's outlook
The 10-K does not provide quantitative fiscal 2027 revenue or EPS guidance. Fiscal 2026 revenue of $67.8395 billion was within the prior 10-Q guidance range of $67.7 billion to $68.0 billion; annual forward outlook was deferred to the earnings press release/call.
Earlier filings 4
10-Q · February 5, 2025
Revenue grew to $15,638.2 million in the quarter (up $1,342.5 million or ~9.4% vs. prior-year quarter), driven in part by acquisitions, but profitability and net income declined: diluted EPS fell to $0.27 from $0.50 and…
10-Q · May 8, 2024
PFG reported quarterly revenue of $13,857.7 million (vs $13,771.3 million a year ago), with gross profit of $1,568.9 million but operating profit down to $154.9 million from $168.8 million. Diluted EPS was $0.45 in the…
10-Q · February 8, 2023
Performance Food Group reported quarterly net sales of $13,898.9 million (three months ended December 31, 2022), up $1,060.1 million (+8.3%) versus $12,838.8 million a year ago, with gross profit rising to $1,499.6…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.