Performance Food Group Co (NYSE:PFGC) Reports Mixed Q4 2025 Results with Revenue Miss and EPS Beat

Performance Food Group Co (NYSE:PFGC) reported its fourth-quarter fiscal 2025 results, delivering mixed performance relative to analyst expectations. The food distribution giant posted net sales of $16.9 billion, representing an 11.5% year-over-year increase but falling short of the consensus estimate of $17.2 billion. Adjusted diluted earnings per share (EPS) came in at $1.55, surpassing the $1.48 forecast by analysts.

Key Financial Highlights vs. Estimates

• Revenue Miss: The $16.9 billion in Q4 sales missed expectations by approximately $260 million.
• EPS Beat: Adjusted EPS of $1.55 exceeded estimates by $0.07, driven by cost optimization and procurement efficiencies.
• Full-Year Performance: For fiscal 2025, PFG reported net sales of $63.3 billion (up 8.6% YoY) and adjusted EPS of $4.48 (up 4.2% YoY).

Market Reaction

The stock is down 0.87% in pre-market trading, suggesting investor disappointment despite the earnings beat. The revenue miss appears to be weighing on sentiment, particularly as inflationary pressures and integration costs from recent acquisitions (such as Cheney Brothers) continue to impact margins. Over the past month, shares had gained 1.77%, but the immediate reaction indicates skepticism about near-term growth.

Operational Performance & Outlook

• Volume Growth: Total case volume increased 11.9% YoY, with organic independent case growth up 5.9%.
• Adjusted EBITDA Growth: Rose 19.9% to $546.9 million in Q4, reflecting strong segment performance.
• Fiscal 2026 Guidance:
  • Q1 Outlook: Net sales expected between $16.6B–$16.9B vs. analyst estimates of $17.25B.
  • Full-Year Outlook: Net sales projected at $67B–$68B, slightly below the consensus estimate of $68.32B.

Segment Performance

• Foodservice: Net sales up 20% YoY to $9.2B, driven by acquisitions and independent case growth.
• Convenience: Sales rose 2.8% to $6.4B, supported by inflation-driven pricing.
• Specialty (formerly Vistar): Sales increased 4.1% to $1.3B, with vending and retail channels showing strength.

Strategic Moves & Capital Allocation

• Share Buybacks: Repurchased 0.8 million shares in fiscal 2025 for $57.6M, with a new $500M authorization approved.
• Free Cash Flow: Generated $704.1M for the year, down from $767.4M in fiscal 2024 due to higher capital expenditures.

Conclusion

While PFG’s adjusted EPS outperformed expectations, the revenue miss and cautious outlook for fiscal 2026 appear to be tempering investor enthusiasm. The company’s growth strategy—centered on acquisitions and market share gains—remains intact, but integration costs and inflationary pressures could weigh on margins in the near term.

For more detailed earnings estimates and historical performance, see PFGC’s earnings page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.