News · Performance Food Group Co (PFGC) · Consumer Defensive
Performance Food rises 13.5% after fiscal Q1 earnings beat and stronger margins
What happened
Performance Food (PFGC) rose 13.5% on November 4, 2026, after reporting fiscal first-quarter earnings of $1.32 a share, beating the consensus estimate by 3.9% because revenue and margins improved. Business Wire and Seeking Alpha reported the company’s quarterly report and earnings call.
How big was the move
The stock closed at $109.57, a gain of 13.5% on the day, and rose 13.9% over the last five sessions. It opened 8.5% above the previous close and traded at 4.3 times its 20-day average volume, a clear sign of unusual investor attention. The move measured 5.6 times a typical daily move for the stock, while the S&P 500 rose 1.6% that day and the Consumer Defensive sector median rose 3.6%, leaving the stock 9.9 percentage points better than the sector median.
The technical picture
The stock sat 12.7% above its 20-day moving average, 14.6% above its 50-day moving average and 12.4% above its 200-day moving average after the rally. The 50-day average remained below the 200-day average, a sign of a weak longer-term trend despite the recent bounce. Relative Strength Index (14 days) registered 71, above 70, a level often called overbought. Performance Food was 6.7% below its 52-week high. Over one month the stock rose 16.8%, over three months it fell 4.4%, and over one year it rose 11.8%, 0.4 percentage points behind the S&P 500. Volatility was 38% annualized over 60 days, higher than 84% of its own readings over five years.
Fundamentals and valuation
For the four quarters through September 26, 2026, Performance Food reported revenue of $68.78 billion, which grew 5.9% from a year earlier and followed revenue growth of 7.2% one quarter earlier. Diluted earnings per share for that period were $2.51, a 20.7% increase from a year earlier. Gross margin was 12.0%, up from 11.8% a year earlier, and operating margin was 1.4%, versus 1.3% a year earlier. Free-cash-flow margin stood at 1.6% and return on invested capital was 4.7%. The balance sheet showed net debt of 5.0 times EBITDA and share count increased by 0.4% over one year.
On valuation, the stock traded at 43.7 times trailing earnings and 19.5 times forward earnings. The price to trailing earnings was higher than 62% of its own readings over the past five years; the five-year median was 40.9 times earnings. Free-cash-flow yield was 7.1% and the company’s market value was $15.56 billion.
Earnings and analyst expectations
Performance Food reported earnings per share of $1.32 for the quarter ended in the first quarter of fiscal 2027, beating the consensus estimate by 3.9% and rising from $1.18 a year earlier. This was the company’s first consecutive quarter beating estimates; the average surprise over the last four reports was 0.5% below estimates. Typical two-day reactions after recent reports had seen the stock rise 1.1%. The next scheduled report is February 3, 2027.
Analysts covering the stock totaled 26, with a consensus rating of Buy and 92% of ratings at Buy or Strong Buy. The consensus price target was $128.17, 17.0% above the closing price on November 4, 2026.
What to watch
- February 3, 2027: next scheduled earnings report.
- Consensus price target of $128.17, 17.0% above the closing price of $109.57.
- Net debt of 5.0 times EBITDA as noted in the balance sheet figures.
- Price to trailing earnings at 43.7 times and price to forward earnings at 19.5 times.
- Relative Strength Index (14 days) at 71, above the overbought threshold.