United Natural Foods Delivers Strong Q2 Fiscal 2026 Results
United Natural Foods, Inc. (NYSE: UNFI) reports robust profitability growth in its second quarter of fiscal 2026, despite a decline in net sales. The company achieved adjusted EBITDA of $179 million, marking a 23.4% increase from the prior year.7738
Net sales totaled $7.9 billion, down 2.6% year-over-year, impacted by nearly 500 basis points from network optimization efforts. Gross profit reached $1.0 billion, a 2.4% decrease, while the gross profit rate improved slightly to 13.2% from 13.1%.77
Segment Performance Highlights
The Natural segment drives growth, posting sales of $4.3 billion, up 6.7%. Conventional sales fall 12.1% to $3.4 billion, and Retail sales decrease 8.2% to $0.6 billion. These shifts reflect strategic transitions, including the Allentown, PA distribution center optimization.77
Profitability and Balance Sheet Strength
Net income swings to $20 million from a $3 million loss last year. Diluted EPS stands at $0.31, compared to a $0.05 loss per share. Adjusted EPS surges 181.8% to $0.62 from $0.22, surpassing analyst expectations of $0.51.7748
Operating expenses drop nearly 6% to $972 million. Net cash from operations rises 14.6% to $283 million, and free cash flow climbs 25.9% to $243 million. The net leverage ratio improves to 2.7x, the lowest since fiscal 2023. UNFI repurchases approximately 750,000 shares for $25 million.
Updated Fiscal 2026 Outlook
Executives raise profitability guidance while trimming sales projections. Full-year net sales now range from $31.0 billion to $31.4 billion. Adjusted EBITDA targets $680 million to $710 million, and adjusted EPS eyes $2.30 to $2.70. GAAP EPS projects $0.80 to $1.20, with free cash flow around $330 million. Net leverage aims for approximately 2.3x by year-end.7753
CEO Commentary
“In the second quarter, disciplined execution of our value creation strategy delivered growth in profitability and free cash flow ahead of our projections, which enabled us to further strengthen our balance sheet and increase our financial flexibility,” states CEO Sandy Douglas. “With a sharpened focus on our growing $90 billion target addressable market, we are working to help differentiating retailers continue to accelerate profitable growth in a dynamic marketplace.”77
Douglas adds, “Looking ahead, our new business pipeline is strong. And we remain committed to continuously improving our effectiveness and efficiency, delivering our updated outlook and strengthening our capabilities to create long-term value for our customers, suppliers, associates, and shareholders.”
UNFI hosts its Q2 earnings call on March 10, 2026, at 8:30 a.m. ET, with materials available on the investor relations website.77
