Companies /Consumer Defensive

United Natural Foods Inc

NYSE: UNFI Food Distribution
$43.61
▼ $0.80 (−1.80%) today
Markets closed · 5:48pm ET

Q2 2026 Earnings

Reported Mar 10, 2026, 7:03am ET · SEC source
$0.62
Beat +22.70%
EPS · est. $0.51
$7.9B
Miss −1.99%
Revenue · est. $8.1B
+22.4%
Beating market
UNFI vs S&P since report
1 quarter
Consecutive EPS misses

Market Reaction

% change · around the report
−10%−5%0+5%Mar 10Mar 11report 7:03am ETearnings−0.6%+6.9%
−10%−5%0+5%Mar 10Mar 11earnings−0.6%+6.9%
UNFI +6.9%S&P 500 −0.6%
−10%−5%0+5%Mar 10Mar 11report 7:03am ETearnings−0.3%+6.9%
−10%−5%0+5%Mar 10Mar 11earnings−0.3%+6.9%
UNFI +6.9%NASDAQ −0.3%
−10%−5%0+5%Mar 9Mar 17report 7:03am ETearnings−0.9%+0.6%
−10%−5%0+5%Mar 9Mar 17earnings−0.9%+0.6%
UNFI +0.6%S&P 500 −0.9%
−10%−5%0+5%Mar 9Mar 17report 7:03am ETearnings−0.6%+0.6%
−10%−5%0+5%Mar 9Mar 17earnings−0.6%+0.6%
UNFI +0.6%NASDAQ −0.6%
−2.99%
Day of report
+8.17%
Next session
+6.61%
One week
+22.77%
30 days

S&P 500 over the same 30 days: +0.34%.

Did UNFI Beat Earnings? Q2 2026 Results

United Natural Foods delivered a quarter defined by a deliberate tradeoff in Q2 fiscal 2026, posting adjusted EPS of $0.62 against a consensus estimate of $0.51, a 22.70% beat, even as net sales of $7.95 billion fell 1.99% short of the $8.11 billion Wall Street expected and declined 2.6% year-over-year. The revenue shortfall was largely by design, as UNFI's network optimization efforts, most notably the exit of its Allentown, Pennsylvania distribution center, weighed nearly 500 basis points on top-line results while simultaneously driving meaningful margin expansion. Adjusted EBITDA climbed 23.4% to $179 million, and GAAP net income swung to $20 million from a prior-year loss of $3 million, reflecting cost discipline that pushed operating expenses down nearly 6%. Free cash flow of $243 million helped the company cut net leverage to 2.7x, its lowest since fiscal 2023. Looking ahead, management raised full-year adjusted EPS guidance to $2.30 to $2.70 and boosted free cash flow expectations to roughly $330 million, while trimming net sales guidance to $31 to $31.4 billion, signaling continued confidence that profitability gains will more than offset the softer revenue trajectory.

Key Takeaways
  • Network optimization actions contributing nearly 500 basis points impact to sales but improving profitability
  • Operating expenses declined nearly 6% driven by cost saving initiatives and higher distribution center productivity
  • Gross profit rate improved to 13.2% from 13.1% benefiting from customer mix and higher procurement gains
  • On-time deliveries and productivity increased compared to prior year quarter
  • Lower interest expense driven by reduced average outstanding debt balances
  • Natural segment sales grew 6.7% year-over-year

“In the second quarter, disciplined execution of our value creation strategy delivered growth in profitability and free cash flow ahead of our projections, which enabled us to further strengthen our balance sheet and increase our financial flexibility. With a sharpened focus on our growing $90 billion target addressable market, we are working to help differentiating retailers continue to accelerate profitable growth in a dynamic marketplace.”

United Natural Foods CEO, on the earnings call

Forward Guidance & Outlook

UNFI updated its full-year fiscal 2026 outlook (52 weeks ending August 1, 2026), raising all profitability metrics while reducing net sales guidance. Net sales are now expected at $31.0–$31.4 billion (previously $31.6–$32.0 billion). Net income raised to $50–$75 million (from $0–$50 million). GAAP EPS raised to $0.80–$1.20 (from $0.00–$0.80). Adjusted EPS raised to $2.30–$2.70 (from $1.50–$2.30). Adjusted EBITDA raised to $680–$710 million (from $630–$700 million). Free cash flow raised to approximately $330 million (from approximately $300 million). Capital and cloud implementation expenditures remain at approximately $250 million. Net leverage ratio now expected to reach approximately 2.3x by year-end, meaningfully lower than the prior target of ≤2.5x.

UNFI YoY Financials

Q2 2026 vs Q2 2025 · SEC filings Q2 2025 Q2 2026
$0$3.0B$6.0B$8.2B$7.9BRevenue$1.1B$1.0BGross Profit$27.0M$57.0MOperating Income$2.3M$20.0MNet Income
$0$3.0B$6.0BRevenueGross ProfitOperating IncomeNet Income

UNFI Revenue by Segment

Natural$4.3B+6.7%
Conventional$3.4B−12.1%
Retail$560.0M−8.2%

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