US Foods (NYSE:USFD) Announces Earnings Results, Beats Estimates By $0.08 EPS

US Foods (NYSE:USFD) announced its earnings results on Thursday. The company reported $1.44 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.36 by $0.08, FiscalAI reports. The firm had revenue of $10.53 billion during the quarter, compared to analyst estimates of $10.46 billion. US Foods had a net margin of 1.81% and a return on equity of 20.53%. US Foods’s revenue was up 4.5% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $1.19 EPS. US Foods updated its FY 2026 guidance to 4.696-4.935 EPS.

Here are the key takeaways from US Foods’ conference call:

• Positive Sentiment: US Foods reported strong second-quarter results, with net sales up 4.5% to $10.5 billion, adjusted EBITDA up 10.2% to a record $604 million, and adjusted diluted EPS up 21% to $1.44. Adjusted EBITDA margin expanded 29 basis points to a record 5.7%.
• Positive Sentiment: Independent restaurant case volume accelerated 5.1%, supported by the strongest net-new-account generation in three years, while healthcare and hospitality volumes grew 3.5% and 4.4%, respectively. The company said it gained share with independent restaurants for the 21st consecutive quarter and healthcare for the 23rd.
• Positive Sentiment: Pronto sales are expected to reach approximately $1.3 billion in 2026, and US Foods raised its 2027 sales outlook for the program to more than $1.7 billion from $1.5 billion previously. Management also cited early encouraging behavior from the new sales compensation plan, though the full impact may take two to three years.
• Positive Sentiment: Self-help initiatives continued to support margins, including more than $50 million of cost-of-goods savings in the first half and over $20 million of incremental indirect procurement savings year to date. The company is also expanding AI applications in sales, forecasting, labor planning, routing, and inventory management to improve productivity and service.
• Neutral Sentiment: US Foods reaffirmed its 2026 guidance for 4%–6% net sales growth, 9%–13% adjusted EBITDA growth, 18%–24% adjusted EPS growth, and 2.5%–4.5% total case volume growth. Management continues to cite industry traffic, inflation, and fuel prices as key variables, while noting that higher sales-force costs will remain elevated for the next couple of quarters.

US Foods Price Performance

Shares of USFD traded up $2.01 during mid-day trading on Friday, hitting $108.98. The company’s stock had a trading volume of 2,423,713 shares, compared to its average volume of 2,496,714. The firm has a 50-day moving average price of $96.42 and a 200 day moving average price of $91.94. The stock has a market capitalization of $24.00 billion, a price-to-earnings ratio of 33.53, a PEG ratio of 1.37 and a beta of 0.81. The company has a debt-to-equity ratio of 1.19, a current ratio of 1.14 and a quick ratio of 0.70. US Foods has a fifty-two week low of $69.88 and a fifty-two week high of $110.08.

Analyst Ratings Changes

A number of brokerages have recently weighed in on USFD. Guggenheim upped their price target on shares of US Foods from $115.00 to $120.00 and gave the stock a “buy” rating in a research note on Friday. Weiss Ratings reissued a “buy (b)” rating on shares of US Foods in a report on Wednesday, July 29th. UBS Group upped their target price on US Foods from $117.00 to $127.00 and gave the stock a “buy” rating in a research report on Friday. JPMorgan Chase & Co. decreased their price target on US Foods from $98.00 to $90.00 and set a “neutral” rating for the company in a research note on Thursday, May 14th. Finally, Piper Sandler lowered their price target on US Foods from $103.00 to $88.00 and set a “neutral” rating on the stock in a research report on Monday, June 1st. Eleven research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, US Foods currently has an average rating of “Moderate Buy” and a consensus price target of $112.38.

Key Stories Impacting US Foods

Here are the key news stories impacting US Foods this week:

• Positive Sentiment: Solid Q2 earnings: US Foods reported adjusted EPS of $1.44, exceeding the $1.36 consensus estimate, while revenue reached $10.53 billion versus expectations of $10.46 billion. Revenue increased 4.5% year over year, and adjusted EBITDA rose 10.2% to a record $604 million. US Foods earnings report
• Positive Sentiment: Growth and guidance reaffirmed: Independent restaurant case volume accelerated 5.1%, total case volume increased 1.9%, and net income rose 22.8% to $275 million. Management reaffirmed fiscal 2026 targets, including 4%–6% sales growth, 9%–13% adjusted EBITDA growth and 18%–24% adjusted EPS growth. The company also repurchased $374 million of stock during the quarter. US Foods Q2 results and outlook
• Positive Sentiment: Analyst optimism increased: Citigroup raised its price target from $110 to $124 and initiated a “buy” rating. Wells Fargo lifted its target from $110 to $125 with an “overweight” rating, while BTIG increased its target from $105 to $120 and reiterated “buy.” These targets imply additional upside and reinforce the positive reaction to the earnings report. Analyst price-target revisions
• Neutral Sentiment: Valuation remains a consideration: Despite a reported 206% five-year return, one analysis cautioned that US Foods stock may now look expensive, potentially limiting further gains unless earnings continue to grow rapidly. US Foods valuation analysis
• Negative Sentiment: Insider selling: Company insiders have reported three open-market sales and no purchases over the past six months, including sales by the chief financial officer. While not necessarily a fundamental concern, the activity is a potential sentiment headwind.

Institutional Trading of US Foods

Several institutional investors and hedge funds have recently added to or reduced their stakes in USFD. Orion Porfolio Solutions LLC increased its stake in shares of US Foods by 1.4% during the 4th quarter. Orion Porfolio Solutions LLC now owns 7,108 shares of the company’s stock worth $535,000 after purchasing an additional 101 shares during the last quarter. Brooklyn Investment Group increased its position in US Foods by 0.9% during the fourth quarter. Brooklyn Investment Group now owns 18,469 shares of the company’s stock worth $1,413,000 after buying an additional 157 shares during the last quarter. Benjamin Edwards Inc. increased its position in US Foods by 3.3% during the second quarter. Benjamin Edwards Inc. now owns 5,854 shares of the company’s stock worth $451,000 after buying an additional 185 shares during the last quarter. Quadrant Capital Group LLC raised its stake in US Foods by 1.6% in the fourth quarter. Quadrant Capital Group LLC now owns 14,208 shares of the company’s stock valued at $1,070,000 after buying an additional 226 shares during the period. Finally, GeoWealth Management LLC lifted its position in shares of US Foods by 8.4% in the fourth quarter. GeoWealth Management LLC now owns 2,964 shares of the company’s stock valued at $223,000 after buying an additional 229 shares during the last quarter. 98.76% of the stock is owned by institutional investors and hedge funds.

About US Foods

US Foods (NYSE: USFD) is a leading foodservice distributor in the United States that supplies a wide range of products and services to professional food operators. The company provides fresh, frozen and dry food items as well as non-food restaurant supplies and kitchen equipment. Its customer base includes independent restaurants, multi-unit chains, healthcare and senior living facilities, hospitality businesses, government and educational institutions, and other foodservice operators.

Beyond commodity and branded food products, US Foods offers value-added solutions designed to help customers run their businesses.