United Natural Foods (UNFI) Calls the Bottom and Guides for Growth Again

On September 8, 2026, the Wall Street Journal reported United Natural Foods, Inc. (NYSE: UNFI )'s fiscal fourth-quarter results, in which adjusted earnings per share of $0.69 beat analyst expectations even as revenue of $7.64 billion came in below consensus.

The grocery wholesaler guided for fiscal 2027 net sales of $31.2 billion to $31.8 billion, a return to growth after full-year fiscal 2026 sales declined 2% to $31.2 billion. The business said full-year adjusted EBITDA rose 27% to $701 million and free cash flow hit a record $323 million as it continued executing what CEO Sandy Douglas called its second year of a value-creation strategy.

United Natural Foods, Inc. (NYSE: UNFI )'s turnaround is improving the financial metrics that matter most for a food distributor. Full-year adjusted EBITDA increased 27%. Net debt fell by $295 million and net leverage improved to 2.2 times. The stronger balance sheet gives UNFI more financial flexibility as it works to return to sales growth.

UNFI's natural-products business is providing an important growth engine. Fourth-quarter natural-products sales increased 6.6%, even as conventional-products sales declined 8.6%. The stronger performance in natural products backs up UNFI's strategy of expanding business with customers that can drive growth as the business restructures its operations.

Management also expects fiscal 2027 sales to reach $31.2 billion to $31.8 billion, up from $31.15 billion in fiscal 2026. Adjusted EPS should reach $3.00 to $3.50 versus $2.65 previously. Management anticipates about 10 basis points of margin expansion at the midpoint, which could help UNFI reach its fiscal 2028 margin target a year earlier than planned.

United Natural Foods, Inc. (NYSE: UNFI )'s sales outlook remains modest. Fiscal 2027 revenue guidance of $31.2 billion to $31.8 billion implies growth of only about 0.2% to 2.1% from fiscal 2026 and falls below the $31.95 billion analyst estimate. The cautious outlook shows that UNFI still needs to prove that its operational improvements can turn into stronger top-line growth.

UNFI's fourth-quarter improvement also benefited from factors that may not repeat. Planned optimization actions and the unwind of short-term project work affected the quarter. The company also faced an easier comparison with the prior year's cybersecurity disruption. So investors need to distinguish sustainable efficiency gains from benefits that will fade as comparisons normalize.

UNFI still needs stronger sales growth to make its margin improvement durable. Fourth-quarter sales fell 0.7% to $7.64 billion, while conventional-products sales dropped 8.6%. So if new customer business fails to offset weakness in the conventional segment, UNFI may struggle to generate enough revenue growth to help further margin expansion and sustain the earnings improvement.