Performance Food Group Company (PFGC) Q2 2026 earnings summary

Executive summary

• 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.

• Achieved strong growth in case volume, net sales, and cash flow for both the second quarter and first six months of fiscal 2026, despite a challenging consumer environment and deflation in key categories.

• 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 2026 financial guidance to reflect recent market dynamics, maintaining confidence in long-term strategy.

Financial highlights

• Second quarter net sales rose 5.2% year-over-year to $16.44 billion; gross profit up 7.6% to $2.0 billion.

• Net income for the quarter increased 45.5% to $61.7 million; diluted EPS up 44.4% to $0.39.

• Adjusted EBITDA for the quarter grew 6.7% to $451.2 million; Adjusted Diluted EPS flat at $0.98.

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

• Gross margin for the quarter was 12.0%, up from 11.7% year-over-year; operating margin improved to 1.2% from 1.0%.

Outlook and guidance

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

• FY2026 guidance: net sales of $67.25–$68.25 billion, adjusted EBITDA of $1.875–$1.975 billion, both slightly narrowed from prior guidance.

• Three-year targets reaffirmed: FY2028 sales of $73–$75 billion and adjusted EBITDA of $2.3–$2.5 billion.

• Guidance incorporates continued deflation in cheese and poultry, ongoing Cheney integration costs, specialty segment headwinds, and weather impacts.

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