UNFI Profit Surges
UNFI Reports Quarterly Profit Above Expectations and Guides Higher Fiscal 2027 Sales
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Key Points
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For fiscal 2027, UNFI projects net income of $105 million to $145 million, reported EPS of $1.70 to $2.30, and adjusted EPS of $3.00 to $3.50.
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UNFI said its fiscal 2027 adjusted EBITDA guidance midpoint is $25 million higher than the outlook provided at its December 2025 investor day, representing high-single-digit growth.
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Fourth-quarter results included an approximately 500-basis-point impact from planned accretive optimization actions and a 150-basis-point headwind from the completed unwind of short-term project work; the prior-year comparison was also affected by the cybersecurity incident.
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UNFI attributed the full-year sales contraction in part to reduced conventional-product offerings and weaker performance in its retail segment.
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The company’s shares were up about 3.5% in premarket trading at approximately $45.50 following the earnings release.
United Natural Foods swung to a $35 million profit in the fourth quarter, beating expectations with adjusted earnings of $0.69 per share versus the $0.62 forecast Yahoo Finance. The turnaround from a $87 million loss a year earlier reflects the company's recovery from a cybersecurity incident and operational improvements that drove adjusted EBITDA up 48.3% to $172 million.
Looking ahead, UNFI guided for higher sales and profit in fiscal 2027, projecting adjusted EBITDA of $730 million to $780 million and revenue of $31.2 billion to $31.8 billion MarketScreener. The company's stock rose 3.5% in premarket trading to $45.50 after the results and outlook announcement.
Earnings Beat and Profitability Recovery
UNFI's fourth-quarter adjusted earnings of $0.69 per share exceeded analyst expectations by 11.29% Yahoo Finance. The company reported actual net income of $35 million, a dramatic improvement from the $87 million loss in the prior year. Revenue was $7.64 billion, down just 0.7% from a year ago despite ongoing headwinds.
For the full fiscal year, sales fell to $31.2 billion, but adjusted EBITDA jumped 27% to $701 million MarketScreener. The improvement came from efficiency gains and successful cost management, though the company still felt residual effects from last year's cybersecurity attack.
Fiscal 2027 Guidance Exceeds Previous Outlook
UNFI's fiscal 2027 guidance midpoint for adjusted EBITDA is $755 million, which is $25 million higher than the outlook provided at its December 2025 investor day MarketScreener. The company projects net income of $105 million to $145 million and reported earnings per share of $1.70 to $2.30. Adjusted EPS is forecast at $3.00 to $3.50, representing high-single-digit growth.
The improved outlook reflects growth from new and existing customers. UNFI expects revenue to reach $31.2 billion to $31.8 billion in fiscal 2027, positioning the company for its strongest year in adjusted profitability.
Cybersecurity Recovery and Operational Gains
The fourth quarter showed a 500-basis-point benefit from planned accretive optimization actions, which offset a 150-basis-point headwind from unwinding short-term project work MarketScreener. The prior-year comparison was also helped by the absence of cybersecurity incident costs that had hurt fiscal 2026 results.
Full-year sales contraction was partly driven by reduced offerings of conventional products and weaker retail segment performance. However, management's ability to boost adjusted EBITDA 27% while revenues fell suggests the company is becoming more efficient and profitable on every dollar of sales.
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