Performance Food Group Company’s (NYSE: PFGC) shares plunged more than 10% in early trading. The drop followed second-quarter fiscal 2026 results that missed Wall Street expectations. Thus, the stock extended recent weakness, trading near its 52-week low of $68, compared to a high near $109.
Quarterly Results
The company reported net sales of $16.4 billion for the quarter. This marked a 5.2% year-over-year rise, driven by case volume growth and higher prices. However, sales fell slightly short of forecasts. Gross profit climbed 7.6% to about $2.0 billion. Meanwhile, net income surged 45.5% to $61.7 million, or $0.39 per share on a GAAP basis. Adjusted diluted EPS stood flat at $0.98, missing analyst targets of $1.07 to $1.09. Adjusted EBITDA rose 6.7% to roughly $451 million. Total case volume increased 3.4%, with independent foodservice cases up 6.7% and organic ones up 5.3%.
Six-Month Performance
For the first half of fiscal 2026, net sales grew 7.9% to $33.5 billion. Adjusted EBITDA advanced over 11%. Free cash flow reached $263.7 million, while operating cash flow hit $456 million. In segments, foodservice sales rose modestly. Convenience distribution expanded in low single digits. Specialty sales advanced slightly. Procurement efficiencies, in turn, boosted margins.
Outlook and Expectations
Results missed consensus on revenue and adjusted EPS. Therefore, the stock tumbled. Analysts reported no immediate upgrades, downgrades, or target changes. Management reaffirmed full-year guidance, trimming it slightly to $67.25 billion–$68.25 billion in net sales and $1.875 billion–$1.975 billion in adjusted EBITDA. For the third quarter, they expect $16 billion–$16.3 billion in sales and $390 million–$410 million in adjusted EBITDA.
Market Reaction
PFGC shares have trended lower in recent weeks. They now sit far below 52-week highs. This reflects caution amid the earnings miss and a tough consumer environment.