Performance Food Q1 sales beat estimates but profit misses due to higher costs

Performance Food

05/11/2025 12:13

Overview

Performance Food Q1 fiscal 2026 sales grow 10.8%, beating analyst expectations

Adjusted EBITDA for Q1 fiscal 2026 beats estimates, rising 16.6%

Net income decreased 13.3% to $93.6 mln due to higher operating expenses

Outlook

Company expects Q2 net sales between $16.4 bln and $16.7 bln

Company forecasts full-year net sales between $67.5 bln and $68.5 bln

Company maintains full-year Adjusted EBITDA outlook of $1.9 bln to $2.0 bln

Result Drivers

ACQUISITIONS AND CASE VOLUME - Net sales growth driven by acquisitions, increased case volume, and inflation-driven price increases

GROSS PROFIT DRIVERS - Gross profit increase due to acquisitions, inventory holding gains, and pricing improvements

NET INCOME DECLINE - Decrease in net income due to higher operating and interest expenses

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Beat
$17.10 bln
$16.87 bln (11 Analysts)
Q1 Adjusted EPS
Miss
$1.18
$1.21 (13 Analysts)
Q1 EPS
$0.60
Q1 Net Income
$93.60 mln
Q1 Adjusted EBITDA
Beat
$480.10 mln
$478.17 mln (11 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the food retail & distribution peer group is "buy"

Wall Street's median 12-month price target for Performance Food Group Co is $118.00, about 18.1% above its November 4 closing price of $96.65

The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release: ID:nBw4wZSd3a

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)