Performance Food Cuts EBITDA Guidance as Market Conditions Shift; PFGC Stock Retreats

Performance Food Group Company (PFGC), a leading food and foodservice distributor, adjusted its financial outlook on Wednesday, narrowing both its quarterly and full-year adjusted EBITDA projections amid evolving market conditions. The revised guidance signals a more cautious stance for the remainder of fiscal 2026, though management maintains confidence in the company’s long-term strategic direction.

FY2026 EBITDA and Sales Targets Narrowed

The company has trimmed its full-year adjusted EBITDA outlook to a range of $1.875 billion to $1.975 billion, down from the previously announced guidance of $1.9 billion to $2 billion. Similarly, PFGC adjusted its annual sales forecast to between $67.25 billion and $68.25 billion, compared to the prior range of $67.5 billion to $68.5 billion. These refinements reflect recent market dynamics that have prompted the distributor to reassess its financial trajectory for 2026.

Scott McPherson, CEO of Performance Food Group, commented on the guidance revision: “As we refine our outlook for 2026 to reflect recent market dynamics, our confidence in the strategy and the long-term trajectory of the company remains unchanged.” This statement underscores management’s belief that the adjusted EBITDA targets, while more conservative, remain achievable within the current operating environment.

Q3 FY2026 Guidance and Performance Comparison

For the third quarter of fiscal 2026, PFGC projects adjusted EBITDA between $390 million and $410 million, coupled with sales expectations of $16 billion to $16.3 billion. This outlook shows modest growth compared to Q3 fiscal 2025 results, when the company reported adjusted EBITDA of $385.1 million and sales of $15.3 billion. The relatively tight guidance range suggests management confidence in Q3 execution despite broader market uncertainty.

To provide additional context, Performance Food Group reported adjusted EBITDA of $1.8 billion for the full fiscal 2025, on total sales of $63.3 billion. The year-over-year comparison indicates the company continues to navigate a complex operating landscape while striving to expand its adjusted EBITDA margins.

Stock Market Reaction and Investor Sentiment

In pre-market trading on the New York Stock Exchange, PFGC shares declined 10.43%, closing at $87. The stock’s sharp retreat reflects investor disappointment with the downward revision to adjusted EBITDA guidance and raises questions about near-term growth prospects. Investors appear to be weighing the company’s long-term confidence against the near-term headwinds that prompted the guidance cut.

The combination of narrowed adjusted EBITDA targets and market volatility will likely keep PFGC in focus as stakeholders monitor the company’s execution through the remainder of fiscal 2026 and assess management’s ability to navigate ongoing market challenges.