United Natural Foods Swings to $20M Profit in Q2 FY2026 as Revenue Slips 2.6%

United Natural Foods, Inc. (NYSE: UNFI), a wholesale distributor of natural and organic foods, reported net income of $20 million for the three months ending January 31, 2026, compared to a net loss of $3 million in the same quarter a year earlier. The swing to profitability came despite a revenue decline of 2.6% to $7.95 billion from $8.16 billion in the prior-year quarter. Read more earnings reports.

For the six-month period ending January 31, 2026, the company reported net income of $16 million, a sharp reversal from a net loss of $24 million in the first half of fiscal 2025. Revenue for the half-year period declined 1.5% to $15.79 billion from $16.03 billion.

Operating income more than doubled in the second quarter, rising to $57 million from $27 million in the year-ago period. For the first half of the fiscal year, operating income climbed to $76 million from $32 million, reflecting improved operational efficiency despite the revenue headwinds.

Gross profit for the quarter narrowed slightly to $1.05 billion from $1.07 billion, while the six-month gross profit stood at $2.10 billion compared to $2.11 billion in the prior-year period. The company's gross margin compression reflected ongoing competitive pressures in the wholesale distribution sector.

The company generated $245 million in cash from operations for the six months ending January 31, 2026, up sharply from $137 million in the same period last year. Cash used in investing activities totaled $46 million, down from $100 million a year earlier, while cash used in financing activities increased to $192 million from $32 million.

Balance Sheet and Capital Structure

Total assets declined to $7.25 billion as of January 31, 2026, from $7.60 billion at the start of the fiscal year on August 2, 2025. Current assets fell to $3.25 billion from $3.42 billion, driven primarily by reductions in inventory and accounts receivable.

Inventory decreased to $1.99 billion from $2.10 billion, while accounts receivable dropped to $964 million from $1.06 billion. Cash and cash equivalents rose modestly to $52 million from $44 million at the fiscal year start.

Long-term debt stood at $1.71 billion as of January 31, 2026, down from $1.86 billion six months earlier. Total liabilities decreased to $5.69 billion from $6.04 billion, while stockholders' equity remained flat at $1.55 billion.

Per Share Results

Diluted earnings per share for the quarter reached $0.31, compared to a loss of $0.05 per share in the prior-year quarter. For the six-month period, diluted EPS came in at $0.25 versus a loss of $0.39 per share.

The weighted average diluted share count increased to 62.7 million shares for both the quarter and the half-year period, up from 60.2 million and 59.9 million shares, respectively, in the prior-year periods.

Financial Summary