01—Abstract
Summary
Summary of the 10-Q filed May 7, 2026. Cited figures are marked; the original filing is the authoritative source.
US Foods Holding Corp. reported net sales of $9.61 billiona for the 13 weeks ended March 28, 2026, up $259 million, or 2.8%, from $9.35 billion a year earlier.
The increase was driven by case volume growth, with total case volume up 1.4% and independent restaurant case volume up 4.6%, along with food cost inflation of 1.0%. Gross profit rose $39 million to $1.65 billionb, but gross margin slipped to 17.2% from 17.3%, reflecting a $38 million LIFO expense compared with $5 million a year earlier. Operating income declined $8 million to $216 million, while net income edged up $1 million to $116 million and diluted EPS was $0.52 versus $0.49.
Adjusted EBITDA increased $24 millionc, or 6.2%, to $413 million, and the Adjusted EBITDA margin rose to 4.3% from 4.2%. Cash flow from operations fell to $294 million from $391 million, and free cash flow was $197 million compared with $308 million, which the filing attributes to changes in operating assets and liabilities and higher tax payments. Interest expense decreased to $75 million from $77 million.
On the balance sheet, total debt was $5.17 billiond at quarter-end, and the company reported about $1.6 billion in cash and available liquidity. The company repurchased about 1.4 million shares for approximately $125 million under its May 2025 program, leaving about $14 million authorized under that program and $1 billion under the November 2025 program. Management expects fiscal 2026 cash capital expenditures of $400 million to $450 million, and fiscal 2026 is a 53-week year.
02—Key points
Key Highlights
- Net sales rose $259 million, or 2.8%, to $9.61 billion, driven by total case volume growth of 1.4% and food cost inflation of 1.0%.
- Independent restaurant case volume increased 4.6%, healthcare volume rose 3.7% and hospitality volume rose 5.0%, while chain volume decreased 2.3%.
- Operating income fell $8 million to $216 million, and gross profit was held back by a $38 million LIFO expense versus $5 million in the prior-year quarter.
- Net income increased $1 million to $116 million, and diluted EPS was $0.52 compared with $0.49.
- Adjusted EBITDA increased $24 million, or 6.2%, to $413 million, with the Adjusted EBITDA margin at 4.3% versus 4.2%.
- Free cash flow was $197 million versus $308 million, as operating cash flow decreased to $294 million from $391 million.
- The company repurchased about 1.4 million shares for approximately $125 million, and $1 billion remains authorized under the November 2025 Share Repurchase Program.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, US Foods Holding kept $0.01.
- Revenue$9.61B100.0%
- Cost of revenue−$7.96B82.8%
- Gross profit$1.65B17.2%
- Operating costs−$1.44B15.0%
- Operating income$216.0M2.2%
- Interest, other & tax−$100.0M1.0%
- Net income$116.0M1.2%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 7, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $9.61B$9.35B | +2.8% |
| Cost of Revenue | $7.96B$7.74B | +2.8% |
| Gross Profit | $1.65B$1.61B | +2.4% |
| SG&A Expenses | $1.43B$1.39B | +3.2% |
| Operating Expenses | $1.44B$1.39B | +3.4% |
| Operating Income | $216.00M$224.00M | −3.6% |
| Net Income | $116.00M$115.00M | +0.9% |
| EPS (Basic) | $0.53$0.50 | +6.0% |
| EPS (Diluted) | $0.52$0.49 | +6.1% |
| Shares Outstanding (Basic) | 220.00M231.00M | −4.8% |
| Shares Outstanding (Diluted) | 223.00M234.00M | −4.7% |
05—Questions
Frequently Asked Questions
How did US Foods grow sales in the first quarter of 2026?
Net sales increased $259 million, or 2.8%, to $9.61 billion. The filing attributes the growth to case volume increases, including a 4.6% rise in independent restaurant case volume and a 5.0% rise in hospitality volume, plus food cost inflation of 1.0%. Organic case volume rose 1.1%.
Why did operating income decline even though sales grew?
Operating income fell $8 million to $216 million. Gross profit increased $39 million, but the company recorded a $38 million LIFO expense compared with $5 million a year earlier, and distribution, selling and administrative costs rose to $1.43 billion from $1.39 billion. Operating expenses were 15.0% of net sales versus 14.9%.
How did cash flow and liquidity change?
Operating cash flow was $294 million compared with $391 million, which the filing attributes to changes in operating assets and liabilities and higher tax payments. Capital expenditures were $98 million. The company reported about $1.6 billion in cash and available liquidity and believes operations and borrowing capacity will be adequate for the next 12 months.
What is the company's share repurchase activity and remaining authorization?
The company repurchased about 1.4 million shares for approximately $125 million under the May 2025 Share Repurchase Program, which includes $50 million funded in the fourth quarter of 2025 under the accelerated share repurchase agreement. About $14 million remains under the May 2025 program, and $1 billion remains under the November 2025 program. Repurchases may be suspended or discontinued at any time.
What is the company's debt position and outlook for capital spending?
Total debt was $5.17 billion as of March 28, 2026, including $388 million outstanding under the ABL Facility. About 34% of total debt bore floating interest rates. Management expects fiscal 2026 cash capital expenditures of $400 million to $450 million, to be funded with available cash or operating cash flow.
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