Performance Food Group lifts net income 38% and keeps its yearly forecast
Performance Food Group's adjusted earnings per share of $1.32 came in 0.9% above expectations, but net sales of $18.0 billion fell 2% short. The company says vendor rebates and more sales to independent customers lifted gross profit 8.5%.
The results
Q1 FY2027
+0.9%
Adj. earnings
-2.0%
Revenue
+13.5%
The stock
Adjusted earnings per share
Expected $1.31
$1.32
Revenue
Expected $18.38B
$18.02B
What the company expects
For the second quarter of fiscal 2027, Performance Food Group expects net sales of about $17.0 billion to $17.2 billion and adjusted EBITDA of about $490 million to $510 million. For the full year, it still expects net sales of about $72.5 billion to $73.0 billion and adjusted EBITDA of about $2.125 billion to $2.225 billion, including a 53rd week.
Results for Q1 FY2027, released on November 4, before the open. Expected: average of analysts' forecasts. Earnings per share under GAAP accounting rules: $0.82.
AI analysis
Nov 4
What drove the quarter
Profit grew faster than sales
Net income rose 38.4% to $129.5 million, and gross profit grew 8.5% to $2.2 billion. The company credits vendor rebates and promotional incentives, more sales to independent customers, who bring higher gross profit because they get extra services, and recent acquisitions.
Sales came in below forecasts
Net sales grew 5.5% to $18.0 billion, but that was 2% below what analysts expected. The company says more cases sold, recent acquisitions and higher prices from inflation drove the growth.
Specialty unit lost ground
Adjusted EBITDA, a measure of operating profit before interest, taxes, depreciation and some exceptional costs, fell 4.8% to $89.5 million at the Specialty segment. Its operating expenses rose 9.0% on higher pay, bad debts and fuel, while Foodservice grew the same measure 13.4%.
What it changes
Yearly forecast kept
The company kept its full-year forecast of $72.5 billion to $73.0 billion in net sales and $2.125 billion to $2.225 billion in adjusted EBITDA. That range counts a 53rd week, so this fiscal year has one more week of sales than a normal year.
What it does not say
Adjusted earnings leave costs out
Adjusted diluted earnings per share of $1.32 leave out costs such as the amortization of acquired intangible assets and the change in the LIFO inventory reserve. On a standard accounting basis, diluted earnings per share came to $0.82.
Thin margin, debt and cash outflow
TrueWallet's analysis puts operating profit of $272.2 million at a 1.5% margin on sales, and long-term debt stood at $5.17 billion. Operating activities still used $89.3 million in cash in the quarter, down from $145.2 million used a year earlier.
One strong session, a high valuation
The stock rose 13.5% on November 4, 2026, closing at $109.57, and one session's move does not settle how the business will do. On October 29, the share price was 42.1 times a year of earnings per share, against a median of 19.1 for essentials stocks.
Analysis written by an AI from public data. It is not investment advice.