Performance Food Group (NYSE:PFGC) Surpasses Q3 CY2025 Projections

Performance Food Group Surpasses Q3 Revenue Forecasts

Performance Food Group (NYSE:PFGC), a leader in food distribution, delivered third-quarter results for fiscal year 2025 that exceeded analysts’ revenue projections. The company reported sales of $17.08 billion, marking a 10.8% increase compared to the same period last year. Its updated full-year revenue outlook stands at $68 billion (midpoint), which is 1.1% higher than consensus estimates. However, adjusted earnings per share came in at $1.18, falling 2.3% short of market expectations.

Q3 2025 Highlights for Performance Food Group

• Revenue: $17.08 billion, surpassing the $16.87 billion estimate (10.8% year-over-year growth, 1.2% above expectations)
• Adjusted EPS: $1.18, compared to the anticipated $1.21 (2.3% below forecast)
• Adjusted EBITDA: $480.1 million, closely matching the $478.3 million estimate (2.8% margin)
• Full-Year EBITDA Guidance: $1.95 billion (midpoint), slightly under the $1.98 billion analyst consensus
• Operating Margin: 1.3%, consistent with the prior year’s quarter
• Free Cash Flow: -$223.2 million, compared to -$42 million in the same period last year
• Sales Volumes: Increased by 9.4% year-over-year (versus 2.6% last year)
• Market Cap: $14.77 billion

About Performance Food Group

Operating a vast network of 155 distribution centers, Performance Food Group supplies over 250,000 food and related products to more than 300,000 customers, including restaurants, convenience stores, entertainment venues, and institutions throughout North America.

Examining Revenue Growth

Consistent sales growth is a hallmark of a strong business. Over the past five years, Performance Food Group has achieved an average annual sales increase of 20.2%. While this is a solid figure, it slightly trails the growth rates typically seen in the consumer discretionary sector, which benefits from several long-term industry trends.

Performance Food Group Quarterly Revenue

At StockStory, we prioritize long-term growth, but it’s important to recognize that recent trends can sometimes reveal new momentum. For Performance Food Group, revenue growth has slowed in the past two years, averaging 6.3% annually—below its five-year pace.

Performance Food Group Year-Over-Year Revenue Growth

Looking at units sold provides further clarity. Over the last two years, the company’s unit sales have grown by an average of 5.8% per year, closely mirroring its revenue growth. This suggests that pricing has remained relatively stable.

Performance Food Group Units Sold

In the most recent quarter, the company’s revenue climbed 10.8% year-over-year, with the $17.08 billion result beating Wall Street’s forecast by 1.2%.

Future Revenue Outlook

Analysts project that Performance Food Group’s revenue will rise by 5.7% over the next year, a rate similar to its recent two-year trend. This modest forecast indicates that new products and services are not expected to significantly accelerate growth in the near term.

Technology continues to transform every sector, fueling demand for tools that support software development, from cloud monitoring to media integration.

Profitability: Operating Margin

Operating margin is a key indicator of a company’s core profitability, excluding taxes and interest. Over the past two years, Performance Food Group’s operating margin has averaged 1.3%, showing little variation. This level of profitability is considered low for a consumer discretionary company and reflects ongoing cost structure challenges.

Performance Food Group Trailing 12-Month Operating Margin (GAAP)

This quarter, the company maintained an operating margin of 1.3%, matching last year’s performance and indicating stable costs.

Earnings Per Share (EPS) Trends

While revenue growth tells part of the story, changes in earnings per share (EPS) reveal how profitable that growth has been. Over the last five years, Performance Food Group’s EPS has soared at a 52.3% compound annual rate, outpacing its revenue growth. However, since operating margins and share count remained steady, this improvement likely stems from lower interest or tax expenses rather than operational gains.

Performance Food Group Trailing 12-Month EPS (Non-GAAP)

For Q3, adjusted EPS reached $1.18, up from $1.16 a year ago. Although this missed analyst expectations, the year-over-year growth is a positive sign. Looking ahead, Wall Street anticipates full-year EPS to reach $4.50, representing a 15.5% increase over the next 12 months.

Summary of Q3 Results

Performance Food Group’s latest quarter was a mixed bag: revenue and full-year guidance slightly exceeded expectations, but EPS and EBITDA guidance fell short. The stock price remained steady at $96.84 following the announcement.

Is Performance Food Group a compelling buy at its current valuation? To make an informed decision, it’s essential to weigh its financial metrics, business fundamentals, and recent performance.