United Natural Foods Inc. (NYSE:UNFI) reported fourth-quarter adjusted earnings above market expectations on Tuesday, although revenue missed analysts’ forecasts and declined from the previous year.
Adjusted earnings per share came in at $0.69, ahead of the analyst consensus of $0.61. Revenue reached $7.64 billion, below the $7.69 billion expected by analysts and down 0.7% from $7.70 billion in the prior-year quarter.
United Natural Foods shares edged 0.09% higher in pre-market trading following the results.
Gross Margin Improves in Fourth Quarter
Fourth-quarter sales were affected by approximately 500 basis points from planned optimisation measures and a further 150-basis-point headwind related to the completion of short-term project work.
Despite the lower revenue, the company’s gross profit rate improved to 13.7% from 13.4% a year earlier, helped by network optimisation initiatives and changes in customer mix.
For the full 2026 fiscal year, net sales declined 2.0% to $31.2 billion.
However, profitability improved significantly. United Natural Foods recorded net income of $84 million, equivalent to $1.34 per diluted share, compared with a net loss of $118 million, or $1.95 per share, in fiscal 2025.
Adjusted EBITDA increased 27.0% to $701 million.
Chief Executive Officer Sandy Douglas said: “UNFI delivered a strong fiscal year through disciplined execution of our strategy to add value for customers and suppliers while becoming a more effective and efficient company.”
Free Cash Flow Rises 35%
Cash generation also strengthened during the year, with free cash flow increasing 35.1% to $323 million from $239 million in fiscal 2025.
The company’s net leverage ratio stood at 2.2 times as of August 1, 2026.
The improvement in EBITDA, free cash flow and gross margin provided a counterweight to the decline in annual sales as the company continued its operational efficiency and network optimisation initiatives.
UNFI Issues Mixed Fiscal 2027 Outlook
For fiscal 2027, United Natural Foods expects adjusted earnings per share of between $3.00 and $3.50. The midpoint of $3.25 is slightly above the analyst consensus estimate of $3.21.
Revenue is forecast at between $31.2 billion and $31.8 billion. The midpoint of $31.5 billion is below the $31.87 billion expected by analysts.
The guidance therefore presents a mixed outlook, with projected earnings modestly ahead of market expectations at the midpoint while anticipated revenue remains below consensus.
United Natural Foods stock price
