US Foods Announces Second Quarter Fiscal 2026 Financial Results
US Foods Holding Corp. (NYSE: USFD), one of the largest foodservice distributors in the United States, has announced financial results for the second quarter of fiscal year 2026, reporting strong revenue growth, improved profitability and continued progress across its strategic initiatives.
The company delivered another quarter of solid operating performance, supported by increased customer demand, higher independent restaurant volumes, improved margins and disciplined cost management. US Foods highlighted that its ongoing focus on operational efficiency, customer service improvements and productivity initiatives continues to strengthen its position in the competitive foodservice distribution market.
For the second quarter of fiscal 2026, US Foods reported net sales of $10.5 billion, representing a 4.5% increase compared with the same period last year. The company’s performance was driven by higher case volume growth and food cost inflation of 2.3%. Total case volume increased 1.9%, with particularly strong momentum among independent restaurant customers.
Independent restaurant case volume increased 5.1% year over year, reflecting continued customer acquisition, improved service capabilities and strong demand from independent operators. Healthcare volume grew 3.5%, while hospitality volume increased 4.4%. These gains were partially offset by a 1.5% decline in chain restaurant case volume.
Organic case volume increased 1.7% during the quarter, including 5.0% organic growth in the independent restaurant segment. The results demonstrate US Foods’ continued ability to expand within key customer categories while maintaining steady performance in a challenging but stable industry environment.
“Our team delivered another strong quarter, highlighted by accelerating volume growth, record Adjusted EBITDA and Adjusted EBITDA margin and strong Adjusted EPS growth in what remains a challenging but stable industry environment,” said Dave Flitman, Chair of the Board and Chief Executive Officer of US Foods.
Flitman noted that the company’s second quarter results are aligned with its long-range strategic plan, which targets 10% Adjusted EBITDA growth and 21% Adjusted Diluted EPS growth. These targets are being supported by margin expansion, independent restaurant growth and continued investments in operational improvements.
He added that US Foods is leveraging its continuous improvement culture to enhance customer service, improve productivity and deliver sustainable, profitable growth. The company remains focused on gaining market share among targeted customer groups, strengthening service levels and deploying cash flow effectively to create long-term value.
Profitability and Margin Improvements
US Foods reported gross profit of $1.9 billion for the second quarter of fiscal 2026, an increase of $142 million, or 8.0%, compared with the prior-year period. The increase was primarily driven by higher case volume, improved cost of goods sold and a favorable $19 million year-over-year LIFO adjustment.
Gross profit margin reached 18.2% of net sales during the quarter. Adjusted gross profit also totaled $1.9 billion, increasing by $123 million, or 6.9%, compared with the prior year. Adjusted gross profit margin remained at 18.2%.
Operating expenses totaled $1.5 billion, increasing by $71 million, or 5.1%, year over year. The increase was primarily related to higher distribution expenses, selling costs and administrative expenses associated with increased business activity. However, these increases were partially offset by initiatives designed to streamline administrative processes and improve cost efficiency.
Adjusted operating expenses were $1.3 billion, representing a 5.5% increase compared with the prior year. Adjusted operating expenses as a percentage of net sales were 12.5%, reflecting continued productivity improvements.
Net income for the quarter reached $275 million, increasing $51 million, or 22.8%, from the prior-year period. Net income margin improved to 2.6%, representing a 39-basis-point increase compared with the previous year.
Adjusted EBITDA increased 10.2% to $604 million, while Adjusted EBITDA margin expanded by 29 basis points to 5.7%. Diluted earnings per share increased 29.2% to $1.24, while Adjusted Diluted EPS rose 21.0% to $1.44.
Strong Cash Flow and Balanced Capital Allocation
US Foods continued to generate strong cash flow while maintaining a disciplined approach to investments and shareholder returns. Cash flow provided by operating activities during the first six months of fiscal 2026 totaled $725 million, matching the level reported during the same period in fiscal 2025.
The company invested $174 million in capital expenditures during the first half of fiscal 2026, an increase of $13 million compared with the previous year. These investments were focused on information technology upgrades, property and equipment improvements, and construction and enhancements at distribution facilities.
At the end of the second quarter, US Foods reported net debt of $5.2 billion. The company’s net debt-to-Adjusted EBITDA ratio stood at 2.6 times, improving from 2.7 times at the end of fiscal 2025.
The company also continued its share repurchase program. During the second quarter, US Foods repurchased 4.4 million shares of common stock for approximately $374 million. For the first six months of fiscal 2026, the company repurchased 5.8 million shares for approximately $500 million, including fees, commissions and related excise taxes.
US Foods had approximately $640 million remaining under its November 2025 share repurchase authorization, providing additional flexibility for future capital allocation decisions.
Continued Focus on Long-Term Growth
Dirk Locascio, Chief Financial Officer of US Foods, emphasized that the company’s results demonstrate consistent execution of its strategic priorities.
“Our second quarter results reflect consistent execution of our key initiatives, supported by strong operating performance,” Locascio said. “We expanded margins again this quarter through a combination of volume growth, gross profit gains and cost productivity improvements.”
He added that US Foods remains confident in its ability to deliver sustained earnings growth and create long-term shareholder value through continued operational improvements, disciplined investments and effective capital management.
With approximately 30,000 associates serving customers nationwide, US Foods continues to focus on becoming the leading foodservice distributor in the industry. The company’s latest results reflect continued momentum in growing customer relationships, improving profitability and strengthening its competitive position as it moves through fiscal 2026.
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