United Natural Foods profits exceed expectations but revenue falls short of expectations

LootboxPhobia · 2026-03-10T15:57:07+00:00

United Natural Foods Inc. announced in its Q2 FY2026 earnings report that adjusted earnings per share exceeded expectations, but revenue fell short of analyst estimates. Despite a 2.6% year-over-year decline in revenue to $7.95 billion, net profit was $20 million. The CEO stated that the company achieved growth in profitability and cash flow, raised its EPS guidance, but lowered its revenue outlook.

LootboxPhobia

2026-03-10 15:57:07

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Providence, Rhode Island - United Natural Foods Inc. (NYSE: UNFI) reported second-quarter fiscal 2026 results that exceeded earnings expectations but fell short of analyst estimates for revenue.

The company’s stock rose 0.41% in pre-market trading after the earnings release.

The grocery wholesaler reported adjusted earnings per share of $0.62, beating the consensus estimate of $0.51 by $0.11. However, revenue declined 2.6% year-over-year to $7.95 billion, missing the $8.11 billion estimate and down from $8.16 billion in the same period last year.

The company stated that the revenue decline included nearly 500 basis points of impact from optimization actions, mainly driven by the expected exit from its distribution center in Allenstown, Pennsylvania.

Adjusted EBITDA increased 23.4% year-over-year to $179 million, up from $145 million in the same period last year. Net income reached $20 million, or $0.31 per diluted share, compared to a net loss of $3 million, or a $0.05 loss per share, in the second quarter of fiscal 2025.

UNFI CEO Sandy Douglas said, “In the second quarter, we disciplinedly executed our value creation strategy, achieving profitability and free cash flow growth beyond our expectations, which enabled us to further strengthen our balance sheet and enhance financial flexibility.”

The company raised its full-year fiscal 2026 outlook, now expecting adjusted earnings per share of $2.30 to $2.70, with a midpoint of $2.50, surpassing the analyst consensus of $2.18. However, UNFI lowered its revenue guidance to $31.0 billion to $31.4 billion, with a midpoint of $31.2 billion, below the consensus estimate of $31.93 billion.

Free cash flow for the quarter was $243 million, up 25.9% from $193 million in the same period last year. The company’s net leverage ratio decreased to 2.7x, the lowest since fiscal 2023. UNFI repurchased nearly 750,000 shares during the quarter, amounting to approximately $25 million.

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