Key Highlights

  • Net sales increased 2.1% to $10.4 billion in the third quarter of fiscal 2026.
  • Independent restaurant case Volume grew 5.0%, while total case volume rose 1.3%.
  • Adjusted EBITDA reached $555 million, up 9.9%, and adjusted diluted EPS rose 17.8% to $1.26.
  • The company narrowed its fiscal 2026 net sales and adjusted EBITDA guidance.

US Foods (NYSE:USFD), one of the largest foodservice distributors in the United States, reported third-quarter fiscal 2026 results. Net sales increased 2.1% to $10.4 billion, while Net Income rose 42.5% to $218 million. The company also acquired Prime Line Distributors in October and repurchased $191 million of its shares, and it updated its full-year guidance. The release combines a modest sales increase with a faster rise in profit measures.

Gross profit growth of 8.6% above net sales growth of 2.1% suggests that the company's gross Margin rose, which is consistent with the higher adjusted EBITDA growth of 9.9%. The release does not break out gross margin by customer type, so the independent restaurant contribution to margin cannot be separated from the total.

Sales Growth and Case Volumes

Net sales for the quarter were $10.4 billion, up 2.1%. Gross Profit increased 8.6% to $1.9 billion. The gap between sales growth and gross profit growth indicates that the company's margin on the products it distributes improved during the period.

Total case volume increased 1.3%, while independent restaurant case volume rose 5.0%. Case volume is the primary operating unit for a foodservice distributor, and the faster growth among independent restaurants suggests higher Demand from that customer group than from the company's broader customer base.

Adjusted diluted EPS of $1.26 grew more slowly than GAAP diluted EPS, which rose 49.3% to $1.00. The reason lies in the adjustments the company applies, and the reconciliation table in the release shows how those items move the GAAP figure to the adjusted one.

Profitability and Earnings Per Share

Net income increased 42.5% to $218 million. Diluted EPS rose 49.3% to $1.00. Adjusted EBITDA grew 9.9% to $555 million, and adjusted diluted EPS increased 17.8% to $1.26. The difference between the GAAP and adjusted per-share growth rates reflects the company's non-GAAP adjustments, which the release reconciles in its tables.

The company's share repurchases during the period also affect per-share results. The $191 million of Buybacks reduced the share count, which helps explain why diluted EPS grew faster than net income.

Acquisition and Capital Return

US Foods acquired Prime Line Distributors in October 2026. The release does not disclose the purchase price or the annual Revenue of the acquired business, so its effect on the company's fourth-quarter and full-year figures must be estimated once the company provides further detail.

Alongside the acquisition, the company repurchased $191 million of its shares in the quarter. Taken together, the Acquisition and buybacks reflect a capital allocation approach that balances growth Investment with returns to shareholders.

Updated Fiscal 2026 Guidance

The company updated its fiscal 2026 guidance, which it had originally provided in February. It now expects net sales growth of 4% to 5%, down from the previous range of 4% to 6%. Adjusted EBITDA growth is now expected at 9% to 11%, compared with 9% to 13% previously, and adjusted diluted EPS growth at 18% to 20%, compared with 18% to 24%.

Each of the three ranges has been narrowed from the top end, which suggests the company expects a more moderate full-year pace than it previously forecast. The release attributes the revised guidance to the company's current view of the year, without citing a single cause.

Readers will look to the fourth quarter to see how Prime Line contributes to sales and whether the company's share repurchases continue at a similar scale. The updated guidance ranges provide the benchmark for those results.

Because the company narrowed its guidance from the top end in all three measures, the revised ranges place greater weight on the lower portion of the previous outlook. Readers can use the updated net sales, adjusted EBITDA and adjusted EPS ranges as the benchmark for judging the fourth quarter.

Outlook

US Foods' third-quarter report combines 2.1% net sales growth, 5.0% independent restaurant case growth, a 17.8% increase in adjusted diluted EPS and a narrowed full-year outlook. The effect of the Prime Line acquisition and the company's continued buybacks will be the key items to monitor in its fourth-quarter report.