United Natural Foods (NYSE:UNFI) Releases Quarterly Earnings Results, Beats Estimates By $0.11 EPS

United Natural Foods (NYSE:UNFI) released its earnings results on Tuesday. The company reported $0.62 earnings per share for the quarter, beating analysts’ consensus estimates of $0.51 by $0.11, FiscalAI reports. The company had revenue of $7.95 billion during the quarter, compared to analyst estimates of $8.11 billion. United Natural Foods had a positive return on equity of 6.05% and a negative net margin of 0.25%.United Natural Foods’s revenue for the quarter was down 2.6% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.22 EPS. United Natural Foods updated its FY 2026 guidance to 2.300-2.700 EPS.

Here are the key takeaways from United Natural Foods’ conference call:

• UNFI reported strong profitability and cash generation in Q2 with Adjusted EBITDA up ~23% to $179M, free cash flow up ~26% to $243M, and adjusted EPS rising to $0.62, helping reduce net leverage to 2.7x.
• Sales declined ~2.6% to nearly $8B in Q2, with an estimated ~500 basis point headwind from accretive network optimization (notably the Allentown DC exit), and management lowered full-year sales guidance to $31.0–$31.4B.
• Management raised full-year profitability and cash expectations—updating Adjusted EBITDA to $680–$710M, Adjusted EPS to $2.30–$2.70, and free cash flow to ~$330M—and now expects year-end net leverage around 2.3x.
• Operational improvements are progressing—companywide rollout of the AI planning platform Relex to finish by year-end, lean daily management in 36 DCs, DC productivity +6%, and >11% reduction in shrink—supporting further margin and working capital gains.
• Long-term growth thesis remains intact: a pipeline largely made up of expanded categories with existing customers, accelerated private‑brand initiatives (nearly 50 new SKUs year‑to‑date), and an expectation to return to sales growth as optimization cycling completes by fiscal 2027, supporting the company’s multi‑year low single‑digit sales target.

United Natural Foods Trading Up 8.1%

NYSE UNFI opened at $40.73 on Thursday. The stock has a market cap of $2.48 billion, a P/E ratio of -31.33 and a beta of 1.00. United Natural Foods has a fifty-two week low of $20.78 and a fifty-two week high of $43.29. The stock has a 50 day simple moving average of $37.16 and a two-hundred day simple moving average of $35.67. The company has a debt-to-equity ratio of 1.11, a quick ratio of 0.50 and a current ratio of 1.33.

Analyst Upgrades and Downgrades

Several brokerages have weighed in on UNFI. Zacks Research downgraded United Natural Foods from a “strong-buy” rating to a “hold” rating in a research report on Monday, February 2nd. Wells Fargo & Company raised their target price on shares of United Natural Foods from $35.00 to $40.00 and gave the stock an “equal weight” rating in a report on Wednesday. UBS Group raised their target price on shares of United Natural Foods from $42.00 to $44.00 and gave the stock a “neutral” rating in a report on Wednesday. Roth Mkm reiterated a “neutral” rating and set a $35.00 price target on shares of United Natural Foods in a report on Thursday, December 11th. Finally, Deutsche Bank Aktiengesellschaft set a $40.00 price target on shares of United Natural Foods in a research report on Thursday, January 8th. Two research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $40.88.

Key Stories Impacting United Natural Foods

Here are the key news stories impacting United Natural Foods this week:

• Positive Sentiment: Q2 EPS beat and profit / margin progress — UNFI reported $0.62 EPS (above estimates) and management raised adjusted-EBITDA guidance (to about $710M), highlighting margin improvement, rising cash flow and supply-chain/AI initiatives that support a path to higher profitability. UNFI raises adjusted EBITDA outlook to $710M while advancing supply chain AI and deleveraging
• Positive Sentiment: BMO raises price target to $52 (Outperform) — BMO bumped its target to $52, signaling substantial upside vs. the recent share price and calling the beat supportive of a higher valuation. This is a meaningful bullish analyst endorsement. United Natural Foods (NYSE:UNFI) Given New $52.00 Price Target at BMO Capital Markets
• Positive Sentiment: Other analysts lift forecasts — Multiple shops have boosted their models and targets after the quarter, reflecting improved margin assumptions and the EPS beat. That analyst support helps underpin the rally. These Analysts Boost Their Forecasts On United Natural Foods Following Q2 Earnings
• Neutral Sentiment: Wells Fargo raises target but stays cautious — Wells Fargo lifted its target (from $35 to $40) but kept an “equal weight” rating, signaling the firm sees improvement but not a clear outperformance. That limits the bullish momentum from some other upgrades. Wells Fargo & Company Issues Positive Forecast for United Natural Foods (NYSE:UNFI) Stock Price
• Negative Sentiment: Revenue miss and trimmed sales guidance — Revenue fell ~2.6% YoY to $7.95B and UNFI trimmed FY26 revenue guidance below consensus, which triggered investor concern that top-line weakness could limit margin gains if volume recovery lags. United Natural Q2 Earnings Beat Estimates, Sales Guidance Lowered
• Negative Sentiment: Market reaction to trimmed sales outlook — The lowered sales outlook prompted a near-term pullback in some trading sessions as investors balanced margin improvement against weaker top-line momentum. UNFI slides after trimming FY26 sales outlook

Insider Activity

In related news, insider Louis Anthony Martin sold 9,439 shares of the company’s stock in a transaction that occurred on Monday, December 22nd. The stock was sold at an average price of $34.67, for a total transaction of $327,250.13. Following the completion of the transaction, the insider owned 81,234 shares in the company, valued at $2,816,382.78. This represents a 10.41% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director James C. Pappas purchased 15,000 shares of the company’s stock in a transaction that occurred on Friday, January 2nd. The stock was acquired at an average cost of $33.76 per share, with a total value of $506,400.00. Following the purchase, the director directly owned 192,178 shares of the company’s stock, valued at $6,487,929.28. This trade represents a 8.47% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders own 2.40% of the company’s stock.

Institutional Investors Weigh In On United Natural Foods

Institutional investors and hedge funds have recently modified their holdings of the stock. Quarry LP purchased a new position in shares of United Natural Foods during the third quarter valued at about $29,000. Larson Financial Group LLC lifted its holdings in United Natural Foods by 4,266.7% in the third quarter. Larson Financial Group LLC now owns 786 shares of the company’s stock worth $30,000 after buying an additional 768 shares during the period. Arax Advisory Partners lifted its holdings in United Natural Foods by 37.4% in the fourth quarter. Arax Advisory Partners now owns 1,102 shares of the company’s stock worth $37,000 after buying an additional 300 shares during the period. Aster Capital Management DIFC Ltd bought a new stake in United Natural Foods during the 4th quarter valued at approximately $38,000. Finally, EverSource Wealth Advisors LLC boosted its position in United Natural Foods by 84.2% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,332 shares of the company’s stock valued at $31,000 after acquiring an additional 609 shares in the last quarter. 87.63% of the stock is owned by hedge funds and other institutional investors.

United Natural Foods Company Profile

United Natural Foods, Inc (NYSE: UNFI) is a leading distributor of natural, organic and specialty foods in North America. Founded in 1976 and headquartered in Providence, Rhode Island, the company has grown through strategic acquisitions and organic expansion to become one of the largest food distributors serving retail, foodservice and e-commerce customers.

UNFI’s core business centers on the procurement, warehousing and distribution of a broad portfolio of products, including fresh produce, groceries, frozen foods, dairy, bakery items, beverages, supplements and household essentials.