Revenue growth has decelerated to 6.4% in 2026Q3, while operating margins remain compressed between 0.9% and 1.9% over the last ten quarters, highlighting structural profitability constraints.
| Metric | TTM | Jun'25 | Jun'24 | Jul'23 | Jul'22 | Jul'21 | Jun'20 | Jun'19 | Jun'18 | Jul'17 | Jul'16 | Jun'15 | Jun'14 | Jun'13 |
|---|
| Sales/Revenue | 66.75B | 63.3B | 58.28B | 57.25B | 50.89B | 30.4B | 25.09B | 19.74B | 17.62B | 16.76B | 16.1B | 15.27B | 13.69B | 12.83B |
| Revenue Growth % | 8.45% | 8.61% | 1.79% | 12.5% | 67.42% | 21.18% | 27.06% | 12.05% | 5.12% | 4.08% | 5.47% | 11.58% | 6.7% | - |
| Cost of Goods Sold | 58.83B | 55.88B | 51.7B | 51B | 45.64B | 26.87B | 22.22B | 17.23B | 15.33B | 14.64B | 14.09B | 13.42B | 11.99B | 11.24B |
| COGS % of Revenue | - | 88.28% | 88.71% | 89.08% | 89.67% | 88.4% | 88.56% | 87.27% | 86.99% | 87.32% | 87.52% | 87.9% | 87.6% | 87.66% |
| Gross Profit | 7.92B | 7.42B | 6.58B | 6.25B | 5.26B | 3.53B | 2.87B | 2.51B | 2.29B | 2.12B | 2.01B | 1.85B | 1.7B | 1.58B |
| Gross Margin % | 11.87% | 11.72% | 11.29% | 10.92% | 10.33% | 11.6% | 11.44% | 12.73% | 13.01% | 12.68% | 12.48% | 12.1% | 12.4% | 12.34% |
| Gross Profit Growth % | - | 12.76% | 5.15% | 19% | 49.11% | 22.86% | 14.17% | 9.6% | 7.91% | 5.71% | 8.75% | 8.9% | 7.23% | - |
| Operating Expenses | 7.09B | 6.6B | 5.75B | 5.49B | 4.93B | 3.32B | 2.97B | 2.23B | 2.04B | 1.91B | 1.81B | 1.69B | 1.58B | 1.47B |
| OpEx % of Revenue | - | 10.43% | 9.87% | 9.59% | 9.68% | 10.94% | 11.83% | 11.29% | 11.57% | 11.42% | 11.23% | 11.06% | 11.56% | 11.45% |
| Selling, General & Admin | 1.54B | 5.88B | 5.19B | 4.99B | 4.47B | 2.95B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| SG&A % of Revenue | - | 9.29% | 8.91% | 8.72% | 8.78% | 9.7% | - | - | - | - | - | - | - | - |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 4M | 717.9M | 556.7M | 496.7M | 462.8M | 375.9M | 2.97B | 2.23B | 2.04B | 1.91B | 1.81B | 1.69B | 1.58B | 1.47B |
| Operating Income | 831.5M | 816.3M | 826.4M | 765.8M | 327.4M | 200.7M | -99M | 283.3M | 253.5M | 211M | 202.2M | 160.1M | 115.6M | 114.7M |
| Operating Margin % | 1.25% | 1.29% | 1.42% | 1.34% | 0.64% | 0.66% | -0.39% | 1.43% | 1.44% | 1.26% | 1.26% | 1.05% | 0.84% | 0.89% |
| Operating Income Growth % | - | -1.22% | 7.91% | 133.9% | 63.13% | 302.73% | -134.95% | 11.76% | 20.14% | 4.35% | 26.3% | 38.49% | 0.78% | - |
| EBITDA | 1.03B | 1.53B | 1.38B | 1.26B | 790.2M | 539.6M | 177.3M | 438.3M | 383.6M | 337.1M | 320.8M | 281.4M | 248.3M | 234.7M |
| EBITDA Margin % | 1.54% | 2.42% | 2.37% | 2.21% | 1.55% | 1.78% | 0.71% | 2.22% | 2.18% | 2.01% | 1.99% | 1.84% | 1.81% | 1.83% |
| EBITDA Growth % | -31.39% | 10.92% | 9.55% | 59.77% | 46.44% | 204.34% | -59.55% | 14.26% | 13.79% | 5.08% | 14% | 13.33% | 5.79% | - |
| D&A (Non-Cash Add-back) | 195.6M | 717.9M | 556.7M | 496.7M | 462.8M | 338.9M | 276.3M | 155M | 130.1M | 126.1M | 118.6M | 121.3M | 132.7M | 120M |
| EBIT | 688.3M | 816.3M | 829M | 762M | 350M | 207.1M | -105.3M | 283.7M | 254M | 212.6M | 198.4M | 182.3M | 116.3M | 113.4M |
| Net Interest Income | -406.3M | -358.4M | -232.2M | -218M | -182.9M | -152.4M | -116.9M | -65.4M | -60.4M | -54.9M | -83.9M | -85.7M | -86.1M | -93.9M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 406.3M | 358.4M | 232.2M | 218M | 182.9M | 152.4M | 116.9M | 65.4M | 60.4M | 54.9M | 83.9M | 85.7M | 86.1M | 93.9M |
| Other Income/Expense | -297.7M | -357.5M | -229.6M | -221.8M | -160.3M | -146M | -123.2M | -65M | -59.9M | -53.3M | -87.7M | -63.5M | -85.4M | -95.2M |
| Pretax Income | 440.8M | 458.8M | 596.8M | 544M | 167.1M | 54.7M | -222.2M | 218.3M | 193.6M | 157.7M | 114.5M | 96.6M | 30.2M | 19.5M |
| Pretax Margin % | 0.66% | 0.72% | 1.02% | 0.95% | 0.33% | 0.18% | -0.89% | 1.11% | 1.1% | 0.94% | 0.71% | 0.63% | 0.22% | 0.15% |
| Income Tax | 112.3M | 118.6M | 160.9M | 146.8M | 54.6M | 14M | -108.1M | 51.5M | -5.1M | 61.4M | 46.2M | 40.1M | 14.7M | 11.1M |
| Effective Tax Rate % | 25.48% | 25.85% | 26.96% | 26.99% | 32.68% | 25.59% | 48.65% | 23.59% | -2.63% | 38.93% | 40.35% | 41.51% | 48.68% | 56.92% |
| Net Income | 328.5M | 340.2M | 435.9M | 397.2M | 112.5M | 40.7M | -114.1M | 166.8M | 198.7M | 96.3M | 68.3M | 56.5M | 15.5M | 8.4M |
| Net Margin % | 0.49% | 0.54% | 0.75% | 0.69% | 0.22% | 0.13% | -0.45% | 0.84% | 1.13% | 0.57% | 0.42% | 0.37% | 0.11% | 0.07% |
| Net Income Growth % | -12.45% | -21.95% | 9.74% | 253.07% | 176.41% | 135.67% | -168.41% | -16.05% | 106.33% | 41% | 20.89% | 264.52% | 84.52% | - |
| Net Income (Continuing) | 286.8M | 340.2M | 435.9M | 397.2M | 112.5M | 40.7M | -114.1M | 166.8M | 198.7M | 96.3M | 68.3M | 56.5M | 15.5M | 8.4M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 2.10 | 2.18 | 2.79 | 2.54 | 0.74 | 0.31 | -1.01 | 1.59 | 1.90 | 0.93 | 0.70 | 0.64 | 0.18 | 0.10 |
| EPS Growth % | -12.5% | -21.86% | 9.84% | 243.24% | 138.71% | 130.69% | -163.52% | -16.32% | 104.3% | 32.86% | 9.38% | 255.56% | 87.89% | - |
| EPS (Basic) | - | 2.20 | 2.82 | 2.58 | 0.75 | 0.31 | -1.01 | 1.61 | 1.95 | 0.96 | 0.71 | 0.65 | 0.18 | 0.10 |
| Diluted Shares Outstanding | 156.8M | 156.4M | 156M | 156.1M | 151.3M | 133.4M | 113M | 105.2M | 104.6M | 103.04M | 98.13M | 87.61M | 87.53M | 87.65M |
| Basic Shares Outstanding | 155.8M | 154.8M | 154.4M | 154.2M | 149.8M | 132.1M | 113M | 103.8M | 102M | 100.24M | 96.45M | 86.87M | 86.87M | 86.89M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | 2619.05% |
Thin operating margin sensitivity
According to quarterly financial data, PFGC's revenue growth has fluctuated significantly, peaking at 11.5% in 2025Q4 before decelerating to 6.4% by 2026Q3, reflecting the inherent volatility in its high-volume, low-margin distribution business model across its diverse Foodservice, Vistar, and Convenience segments.
The inconsistent top-line trajectory suggests that the company is highly sensitive to macroeconomic shifts affecting away-from-home dining and convenience store traffic. While the company has successfully scaled through acquisitions, the deceleration in recent quarters warrants investigation into whether organic volume growth is stalling or if pricing power is being constrained by competitive pressures.
As reported in recent income statements, PFGC maintains a narrow gross margin profile of approximately 11.7% to 12.0%, which highlights the structural limitations of its business model, heavily influenced by the distribution of low-margin, high-volume commodities like tobacco and essential food supplies.
The persistent inability to expand gross margins beyond this tight range suggests that the company lacks significant pricing power relative to its peers. Investors should monitor whether the shift toward private-label 'Performance Brands' can eventually provide the necessary margin expansion to offset the inherent cost of logistics and labor inflation.
Based on the provided income statement figures, PFGC's operating margin has remained compressed between 0.9% and 1.9% over the last ten quarters, indicating that the company struggles to scale operating income efficiently despite significant top-line growth in its distribution operations.
The lack of meaningful operating leverage suggests that incremental revenue gains are largely consumed by the variable costs of fuel, labor, and warehouse operations. This trend implies that the company's profitability is highly vulnerable to any disruption in its logistics network or sustained increases in operating expenses.
Analysis of the reported net income reveals significant quarterly volatility, with EPS dropping from $1.07 in 2024Q4 to $0.27 in 2026Q3, a trend that appears driven by fluctuating operating performance and non-operating items rather than consistent, high-quality earnings growth.
The erratic nature of the bottom line, combined with the impact of stock-based compensation and potential LIFO inventory adjustments, suggests that reported net income may not fully reflect the underlying cash-generating capability of the business. Analysts should be cautious of relying on headline EPS figures without adjusting for these recurring operational and accounting distortions.
While management emphasizes the benefits of its M&A-led growth strategy, the income statement data suggests that the integration of large-scale acquisitions has yet to yield a sustainable improvement in operating margins, raising questions about the long-term value creation of the current capital allocation strategy.
Short-sellers may focus on the company's exposure to secularly declining tobacco volumes and the potential for margin compression if labor and fuel costs continue to outpace price recovery. The reliance on inorganic growth to drive top-line expansion may mask underlying weaknesses in the core business, warranting a skeptical view of future profitability targets.
Quick answers to the most common questions about buying PFGC stock.
For fiscal year 2025, Performance Food Group Company (PFGC) reported total revenue of $63.30B. This represents a 393.5% increase compared to $12.83B in 2013.
Performance Food Group Company (PFGC) is profitable, generating $340.2M in net income for the fiscal year ending 2025 with a net profit margin of 0.5%.
Performance Food Group Company (PFGC) reported an operating income of $816.3M, resulting in an operating profit margin of 1.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Performance Food Group Company (PFGC) generated $7.42B in gross profit for the year, representing a gross profit margin of 11.7%. This demonstrates the company's core pricing power and production efficiency.