US Foods (USFD) Q1 2026 earnings summary

Executive summary

• Net sales grew 2.8% year-over-year to $9.6B, driven by 1.4% total case volume growth and strong independent restaurant case growth of 4.6%; healthcare and hospitality volumes rose 3.7% and 5.0%, respectively, while chain volume declined 2.3%.

• Adjusted EBITDA increased 6.2% to $413M, with margin improving to 4.3% of net sales; Adjusted Diluted EPS rose 14.7% to $0.78.

• Achieved 20th consecutive quarter of market share gains with independent restaurants and 22nd with healthcare; continued strong net new independent account growth at 4.7%.

• Repurchased $125M of shares during the quarter, with $1B remaining authorized; net leverage at 2.6x, lowest among large public peers.

• Continued progress on digital capabilities, operational excellence, and self-help initiatives, including AI-powered tools and new hospitality solutions.

Financial highlights

• Net sales reached $9.61B, up 2.8% year-over-year; Adjusted Gross Profit rose 4.4% to $1.7B; Adjusted EBITDA margin expanded by 14 basis points to 4.3%.

• Adjusted Net Income increased 9.4% to $174M; net income was $116M, up 0.9% year-over-year.

• Operating cash flow was $294M, below prior year due to less working capital benefit and higher tax payments; CapEx was $98M.

• Free cash flow was $197M, down from $308M in the prior year period.

• Operating expenses rose 3.4% to $1.4B; Adjusted Operating expenses up 3.9% to $1.3B.

Outlook and guidance

• Fiscal 2026 guidance reaffirmed: Net sales growth of 4%–6%, Adjusted EBITDA growth of 9%–13%, and Adjusted Diluted EPS growth of 18%–24% (includes 53rd week, expected to add about 1% to case and Adjusted EBITDA growth).

• Q2 Adjusted EBITDA growth expected in mid to upper single digits due to macro uncertainty and elevated fuel costs.

• If fuel and macro pressures persist, expect results at lower end of guidance; otherwise, in line with long-term algorithm.

• Capital expenditures for fiscal 2026 expected to be $400M–$450M, funded by cash or operations.

• Net leverage target range remains 2.0x–3.0x; management expects to meet debt service, operational, and capital needs over the next 12 months with available liquidity.