United Natural Foods Raises Fiscal EPS Guidance, Cuts Sales Outlook After Q2 Miss
United Natural Foods reported Q2 adjusted EPS of $0.62 beating the $0.51 consensus while sales fell 2.6% year-over-year to $7.95 billion, missing the $8.11 billion estimate. The company raised fiscal 2026 adjusted EPS guidance to $2.30–$2.70 but trimmed sales outlook to $31.0–$31.4 billion.
1. Q2 Financial Results
United Natural Foods posted adjusted EPS of $0.62, surpassing the $0.51 consensus, while revenue decreased 2.6% to $7.95 billion, below the $8.11 billion estimate. Natural channel sales increased 6.7% to $4.29 billion, offset by a 12.1% drop in conventional channel sales to $3.39 billion and an 8.2% decline in retail sales to $560 million.
2. Liquidity and Cash Flow
As of January 31, the company held $1.34 billion in total liquidity, including $52 million in cash and $1.29 billion of unused asset-based lending capacity. Free cash flow rose to $243 million from $193 million a year earlier, and adjusted EBITDA climbed 23.4% to $179 million.
3. Updated Full-Year Outlook
For fiscal 2026, United Natural Foods lifted adjusted EPS guidance to $2.30–$2.70 and raised adjusted EBITDA forecasts to $680 million–$710 million, while cutting net sales projections to $31.0 billion–$31.4 billion. Free cash flow guidance was increased to approximately $330 million, with capital and implementation expenditures around $250 million.