US Foods (USFD) Q2 2026 earnings summary

Executive summary

• Net sales grew 4.5% year-over-year to $10.53 billion, with net income up 22.8% to $275 million and Adjusted EBITDA reaching a record $604 million, up 10.2%.

• Adjusted Diluted EPS rose 21% to $1.44, with strong case volume growth led by independent restaurants (+5.1%), healthcare (+3.5%), and hospitality (+4.4%).

• Robust cash flow enabled $374 million in share repurchases for the quarter and $500 million year-to-date, with net leverage at 2.6x.

• Technology and AI investments are driving productivity, customer service, and sustainable growth.

• Gross profit increased 8.0% to $1.92 billion, with margin improvements from volume growth and favorable LIFO adjustments.

Financial highlights

• Net sales for Q2 2026 were $10.53 billion (+4.5% YoY); Adjusted EBITDA was $604 million (+10.2% YoY) with margin expanding to 5.7%.

• Adjusted Diluted EPS was $1.44 (+21% YoY); net income was $275 million (+22.8% YoY).

• Gross margin improved to 18.2% for the quarter; adjusted gross profit per case increased $0.41 (5%).

• Operating cash flow year-to-date was $725 million; free cash flow for the quarter was $355 million.

• Net leverage at 2.6x, with no long-term debt maturities until 2028.

Outlook and guidance

• Fiscal 2026 guidance reaffirmed: net sales growth of 4–6%, Adjusted EBITDA growth of 9–13%, and Adjusted Diluted EPS growth of 18–24%.

• Total case volume growth expected at 2.5–4.5%, with a 53rd week in fiscal 2026 expected to add about 1% to case growth and Adjusted EBITDA.

• Capital expenditures for fiscal 2026 projected at $400–$440 million, funded by operating cash.

• Liquidity remains strong with $1.8 billion in cash and available capacity.

• Confident in delivering consistent double-digit adjusted EPS growth over time.