US Foods (NYSE:USFD) Releases Earnings Results, Beats Expectations By $0.01 EPS

US Foods (NYSE:USFD) issued its quarterly earnings data on Thursday. The company reported $1.26 EPS for the quarter, topping the consensus estimate of $1.25 by $0.01, FiscalAI reports. US Foods had a return on equity of 20.53% and a net margin of 1.81%. The company had revenue of $10.40 billion during the quarter, compared to analyst estimates of $10.58 billion. During the same quarter in the previous year, the firm earned $1.07 earnings per share. US Foods’s revenue was up 2.1% on a year-over-year basis.

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

• US Foods reported 10% adjusted EBITDA growth, 38 basis points of margin expansion and 18% adjusted EPS growth. Independent restaurant cases rose 5%, with the company extending its market-share gains to 22 consecutive quarters in independents and 24 in healthcare.
• Management said weaker consumer confidence and labor conditions pressured demand, leaving total volume growth below expectations. It cited higher fuel costs and temporary seller-compensation transition expenses as additional Q4 headwinds, while forecasting full-year case growth of 2.5%–3.5%, adjusted EBITDA growth of 9%–11% and adjusted EPS growth of 18%–20%.
• AI initiatives are generating more than $75 million in adjusted EBITDA, and the company expects that figure to exceed $110 million next year. Accounts using sales insights are growing cases nearly 10% faster, supporting a lower expected seller-headcount growth rate of low single digits.
• The October acquisition of Prime Line adds more than $110 million in annual sales and specialty Italian products that US Foods plans to expand through its broadline network and Pronto. Pronto generated more than $1 billion in sales year to date, and the company expects $1.3 billion this year and more than $1.7 billion in 2027.
• US Foods generated nearly $1.2 billion in operating cash flow through the first nine months and repurchased $690 million of shares year to date. Net leverage was 2.4 times, within its target range, leaving capacity for investment and acquisitions.

US Foods Stock Down 0.4%

Shares of USFD stock traded down $0.43 during trading hours on Friday, hitting $106.42. 2,255,270 shares of the company’s stock traded hands, compared to its average volume of 1,930,697. The company has a quick ratio of 0.70, a current ratio of 1.14 and a debt-to-equity ratio of 1.19. The stock’s fifty day simple moving average is $99.23 and its two-hundred day simple moving average is $94.98. US Foods has a 12-month low of $69.88 and a 12-month high of $112.57. The stock has a market cap of $23.02 billion, a price-to-earnings ratio of 29.73, a PEG ratio of 1.34 and a beta of 0.87.

Analyst Ratings Changes

Several research firms have recently commented on USFD. Morgan Stanley lifted their price objective on US Foods from $107.00 to $111.00 and gave the stock an “equal weight” rating in a report on Thursday, October 15th. JPMorgan Chase & Co. dropped their target price on US Foods from $108.00 to $98.00 and set a “neutral” rating for the company in a report on Tuesday, September 29th. Piper Sandler raised their price target on US Foods from $88.00 to $108.00 and gave the stock a “neutral” rating in a research report on Wednesday, August 12th. Wall Street Zen cut US Foods from a “buy” rating to a “hold” rating in a research note on Saturday. Finally, BTIG Research reiterated a “buy” rating and issued a $120.00 price objective on shares of US Foods in a research report on Friday. One research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat.com, US Foods has a consensus rating of “Moderate Buy” and an average price target of $115.31.

Insider Activity at US Foods

In related news, insider Randy J. Taylor sold 11,630 shares of the stock in a transaction dated Thursday, August 13th. The shares were sold at an average price of $110.37, for a total transaction of $1,283,603.10. Following the sale, the insider directly owned 73,618 shares of the company’s stock, valued at approximately $8,125,218.66. This represents a 13.64% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Corporate insiders own 0.74% of the company’s stock.

Key US Foods News

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

• Positive Sentiment: US Foods earned $1.26 per share, slightly above the $1.25 consensus and up from $1.07 a year earlier. Stronger margins and case volumes contributed to the earnings beat; adjusted EBITDA rose 10% year over year. US Foods Q3 Earnings Surpass Estimates, Sales Increase Y/Y
• Positive Sentiment: TD Cowen raised its price target to $125 from $119 and reaffirmed a Buy rating. BTIG also reiterated Buy and set a $120 target, signaling analyst confidence in further upside. US Foods Stock Price Target Raised at TD Cowen
• Negative Sentiment: Quarterly revenue of $10.40 billion was below analysts’ $10.58 billion estimate, despite increasing 2.1% year over year. The company also narrowed its fiscal 2026 growth outlook, which could temper investor expectations. US Foods Q3 2026: Earnings Beat, Guidance Cut, Revenue Miss

About US Foods

US Foods Holding Corp. is a foodservice distributor that supplies restaurants and other foodservice businesses across the United States. Its customers include independent restaurants, healthcare and senior-care facilities, hotels, educational institutions, and government organizations.

The company distributes a broad range of products, including fresh and frozen foods, meat, seafood, produce, dairy, beverages, and nonfood supplies. It also offers services and digital tools intended to help customers manage menus, purchasing, and kitchen operations.

US Foods is headquartered in Rosemont, Illinois, and traces its history to predecessor businesses dating back to the 19th century.