United Natural Foods (NYSE:UNFI) Issues Quarterly Earnings Results, Beats Expectations By $0.11 EPS

United Natural Foods (NYSE:UNFI) posted its earnings results on Tuesday. The company reported $0.62 earnings per share for the quarter, topping analysts’ consensus estimates of $0.51 by $0.11, FiscalAI reports. United Natural Foods had a negative net margin of 0.32% and a positive return on equity of 4.35%. The firm had revenue of $7.95 billion for the quarter, compared to analyst estimates of $8.11 billion. During the same period in the previous year, the firm posted $0.22 EPS. The company’s revenue for the quarter was down 2.6% compared to the same quarter last year. United Natural Foods updated its FY 2026 guidance to 2.300-2.700 EPS.

Here are the key takeaways from United Natural Foods’ conference call:

• UNFI reported strong profitability and cash generation in Q2 with Adjusted EBITDA up ~23% to $179M, free cash flow up ~26% to $243M, and adjusted EPS rising to $0.62, helping reduce net leverage to 2.7x.
• Sales declined ~2.6% to nearly $8B in Q2, with an estimated ~500 basis point headwind from accretive network optimization (notably the Allentown DC exit), and management lowered full-year sales guidance to $31.0–$31.4B.
• Management raised full-year profitability and cash expectations—updating Adjusted EBITDA to $680–$710M, Adjusted EPS to $2.30–$2.70, and free cash flow to ~$330M—and now expects year-end net leverage around 2.3x.
• Operational improvements are progressing—companywide rollout of the AI planning platform Relex to finish by year-end, lean daily management in 36 DCs, DC productivity +6%, and >11% reduction in shrink—supporting further margin and working capital gains.
• Long-term growth thesis remains intact: a pipeline largely made up of expanded categories with existing customers, accelerated private‑brand initiatives (nearly 50 new SKUs year‑to‑date), and an expectation to return to sales growth as optimization cycling completes by fiscal 2027, supporting the company’s multi‑year low single‑digit sales target.

United Natural Foods Stock Performance

Shares of UNFI opened at $37.60 on Wednesday. United Natural Foods has a one year low of $20.78 and a one year high of $43.29. The company has a market cap of $2.29 billion, a PE ratio of -22.65 and a beta of 1.00. The stock has a 50-day moving average of $37.02 and a 200-day moving average of $35.64. The company has a debt-to-equity ratio of 1.25, a current ratio of 1.38 and a quick ratio of 0.50.

Insiders Place Their Bets

In other United Natural Foods news, CAO Richard Eric Esper sold 4,261 shares of the firm’s stock in a transaction that occurred on Thursday, December 18th. The stock was sold at an average price of $33.08, for a total value of $140,953.88. Following the completion of the sale, the chief accounting officer owned 37,369 shares of the company’s stock, valued at approximately $1,236,166.52. This trade represents a 10.24% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Louis Anthony Martin sold 9,439 shares of the business’s stock in a transaction that occurred on Monday, December 22nd. The shares were sold at an average price of $34.67, for a total value of $327,250.13. Following the sale, the insider owned 81,234 shares of the company’s stock, valued at approximately $2,816,382.78. This represents a 10.41% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 2.40% of the company’s stock.

Institutional Trading of United Natural Foods

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. State of Tennessee Department of Treasury raised its holdings in United Natural Foods by 19.5% during the fourth quarter. State of Tennessee Department of Treasury now owns 34,340 shares of the company’s stock worth $1,278,000 after buying an additional 5,609 shares during the last quarter. Mackenzie Financial Corp grew its holdings in shares of United Natural Foods by 784.6% during the fourth quarter. Mackenzie Financial Corp now owns 66,910 shares of the company’s stock valued at $2,238,000 after buying an additional 59,346 shares during the last quarter. XTX Topco Ltd increased its position in shares of United Natural Foods by 82.6% during the fourth quarter. XTX Topco Ltd now owns 42,876 shares of the company’s stock worth $1,444,000 after acquiring an additional 19,400 shares in the last quarter. Zacks Investment Management acquired a new stake in shares of United Natural Foods in the 4th quarter worth about $1,938,000. Finally, VARCOV Co. acquired a new stake in shares of United Natural Foods in the 4th quarter worth about $886,000. Institutional investors own 87.63% of the company’s stock.

Analysts Set New Price Targets

A number of equities analysts have recently commented on UNFI shares. BMO Capital Markets reiterated an “outperform” rating on shares of United Natural Foods in a report on Thursday, December 11th. Zacks Research lowered United Natural Foods from a “strong-buy” rating to a “hold” rating in a research report on Monday, February 2nd. Wells Fargo & Company cut their target price on United Natural Foods from $37.00 to $35.00 and set an “equal weight” rating on the stock in a report on Friday, December 19th. Deutsche Bank Aktiengesellschaft set a $40.00 price target on United Natural Foods in a research report on Thursday, January 8th. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of United Natural Foods in a research note on Friday, January 9th. Three equities research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Hold” and an average target price of $38.78.

United Natural Foods News Summary

Here are the key news stories impacting United Natural Foods this week:

• Positive Sentiment: Beat on EPS and upgraded profitability guidance — UNFI reported $0.62 EPS vs. $0.51 est. and raised FY26 EPS guidance to $2.30–$2.70, which supports earnings momentum and valuation expansion. UNFI Surpasses Q2 Earnings Estimates
• Positive Sentiment: Margin improvement, higher adjusted EBITDA outlook and deleveraging — management raised adjusted EBITDA to ~$710M, highlighted margin gains, rising cash flow and AI-driven supply-chain improvements that could sustainably lift profitability. UNFI raises adjusted EBITDA outlook
• Neutral Sentiment: Analyst/market reception is mixed — brokerages have an average “Hold” and some commentators view recent weakness as a buying opportunity, indicating no clear consensus among analysts. UNFI Given ‘Hold’ Rating
• Neutral Sentiment: Investor events ahead — CFO Matteo Tarditi will speak at the UBS Global Consumer & Retail Conference (Mar 12), which could provide additional color on execution and the multi-year earnings runway. UNFI to Participate at UBS Conference
• Negative Sentiment: Revenue miss and trimmed sales outlook — Q2 revenue of $7.95B missed estimates (~$8.11B) and management cut FY26 sales guidance below consensus ($31.0–31.4B vs. ~$32.1B est.), creating uncertainty about top-line recovery. UNFI Reports Q2 Results
• Negative Sentiment: Market reaction: shares slid after the sales guidance cut despite the profit beat — short-term downside risk remains if revenue trends don’t stabilize or if margin gains fail to offset top-line weakness. UNFI slides after trimming FY26 sales outlook

About United Natural Foods

United Natural Foods, Inc (NYSE: UNFI) is a leading distributor of natural, organic and specialty foods in North America. Founded in 1976 and headquartered in Providence, Rhode Island, the company has grown through strategic acquisitions and organic expansion to become one of the largest food distributors serving retail, foodservice and e-commerce customers.

UNFI’s core business centers on the procurement, warehousing and distribution of a broad portfolio of products, including fresh produce, groceries, frozen foods, dairy, bakery items, beverages, supplements and household essentials.