Companies /Consumer Defensive

United Natural Foods Inc

NYSE: UNFI Food Distribution
$43.61
▼ $0.80 (−1.80%) today
Markets closed · 5:49pm ET

Q1 2026 Earnings

Reported Dec 2, 2025, 7:02am ET · SEC source
$0.56
Beat +40.32%
EPS · est. $0.40
$7.8B
Miss −0.86%
Revenue · est. $7.9B
−8.4%
Trailing market
UNFI vs S&P since report
1 quarter
Consecutive EPS misses

Market Reaction

% change · around the report
−10%−5%0+5%Dec 2Dec 3report 7:02am ETearnings+0.3%−6.0%
−10%−5%0+5%Dec 2Dec 3earnings+0.3%−6.0%
UNFI −6.0%S&P 500 +0.3%
−10%−5%0+5%Dec 2Dec 3report 7:02am ETearnings+0.5%−6.0%
−10%−5%0+5%Dec 2Dec 3earnings+0.5%−6.0%
UNFI −6.0%NASDAQ +0.5%
−10%−5%0+5%Dec 1Dec 10report 7:02am ETearnings+0.1%−6.1%
−10%−5%0+5%Dec 1Dec 10earnings+0.1%−6.1%
UNFI −6.1%S&P 500 +0.1%
−10%−5%0+5%Dec 1Dec 10report 7:02am ETearnings+0.8%−6.1%
−10%−5%0+5%Dec 1Dec 10earnings+0.8%−6.1%
UNFI −6.1%NASDAQ +0.8%
+4.63%
Day of report
−7.32%
Next session
−4.12%
One week
−7.45%
30 days

S&P 500 over the same 30 days: +0.91%.

Did UNFI Beat Earnings? Q1 2026 Results

United Natural Foods delivered a standout profitability quarter in Q1 fiscal 2026, posting adjusted EPS of $0.56 against a consensus estimate of $0.40, a 40.32% beat that signaled meaningful operational progress even as top-line results came in slightly soft. Net sales of $7.84 billion fell 0.4% year-over-year and edged just below the $7.91 billion consensus, with growth in the Natural segment, up 10.5% to $4.24 billion, more than offset by an anticipated drop in Conventional sales tied to the planned wind-down of the Allentown, Pennsylvania distribution center. The real story was efficiency: adjusted EBITDA surged 24.6% to $167.00 million as lean daily management, now active across 34 distribution centers, drove higher productivity and margin expansion. That operational momentum has fueled growing analyst confidence, with several price target upgrades following a recent investor day event where management outlined targets of $33 billion in net sales and $800 million in adjusted EBITDA by fiscal 2028. For the full year, UNFI reaffirmed guidance calling for net sales of $31.60 billion to $32.00 billion and free cash flow of approximately $300.00 million.

Key Takeaways
  • Network optimization proceeding ahead of schedule
  • Lean daily management now implemented in 34 distribution centers
  • Higher distribution center productivity driving operating expense reduction
  • Favorable impact of supplier programs and higher procurement gains
  • Positive impact of customer mix on gross profit rate
  • Lower average outstanding debt reducing interest expense
  • Discrete tax benefits from favorable audit settlements and employee stock awards

“We started fiscal 2026 with another quarter of solid execution and continued progress in delivering more value to our customers and suppliers as we strengthen effectiveness and efficiency. Our network optimization is proceeding ahead of schedule, and the benefits of recent supply chain investments, coupled with process improvements, is enabling us to strengthen service levels and increase throughput. This helped us deliver Adjusted EBITDA growth of nearly 25%, free cash flow meaningfully above last year and a sequential net leverage decline.”

United Natural Foods CEO, on the earnings call

Forward Guidance & Outlook

UNFI affirmed its full-year fiscal 2026 outlook (52 weeks ending August 1, 2026): Net sales of $31.6 billion to $32.0 billion; Net income of $0 to $50 million; EPS of $0.00 to $0.80; Adjusted EPS of $1.50 to $2.30 (at 25% adjusted tax rate); Adjusted EBITDA of $630 million to $700 million; Capital and cloud implementation expenditures of approximately $250 million; Free cash flow of approximately $300 million. The company remains on track to achieve its net leverage target of 2.5x or less by the end of the fiscal year.

UNFI YoY Financials

Q1 2026 vs Q1 2025 · SEC filings Q1 2025 Q1 2026
$0$3.0B$6.0B$7.9B$7.8BRevenue$1.0B$1.1BGross Profit$5.0M$19.0MOperating Income$-2,210,555$-4,000,000Net Income
$0$3.0B$6.0BRevenueGross ProfitOperating IncomeNet Income

UNFI Revenue by Segment

Natural$4.2B+10.5%
Conventional$3.3B−11.7%
Retail$554.0M−5.5%

Figures from SEC filings and company reports. Not investment advice.