US Foods Holding Corp. ( USFD ) dips on Thursday, despite beating third-quarter expectations and raising EPS guidance, as modest volume growth tempers sentiment.

The company reported third-quarter adjusted earnings per share of $1.07 (+25.9% year over year), beating the analyst consensus estimate of $1.03. Quarterly sales of $10.191 billion (+4.8% year over year) outpaced the Street view of $10.178 billion.

Also Read: EPAM Confident On Growth, Raises Annual Outlook

“We delivered a combination of top-line growth and 28 basis points of Adjusted EBITDA margin expansion again this quarter, resulting in 11% Adjusted EBITDA growth,” said CFO Dirk Locascio.

Metrics

Gross profit in the quarter under review increased 5.2% to $1.8 billion, while adjusted EBITDA increased 11% to $505 million.

Adjusted EBITDA margin was 5%, an increase of 28 basis points compared to the prior year. 

“We are deploying our strong cash flow to invest in the business, execute share repurchases, and pursue opportunistic tuck-in M&A, which will enable us to deliver on our commitment to generating long-term profitable growth and creating shareholder value,” Locascio added.

Total case volume rose 1.1% year over year. Growth was driven by a 3.9% increase in independent restaurant volume, a 3.9% gain in healthcare and a 2.4% lift in hospitality.

After quarter-end, the company has signed a definitive agreement to acquire Shetakis, an independent food distributor located in Las Vegas, Nevada. US Foods ( USFD ) is seeking to close the transaction in the fourth quarter of 2025.

The company exited the quarter with cash and equivalents worth $56 million.

Outlook

US Foods ( USFD ) lifted fiscal year 2025 adjusted EPS guidance to $3.91–$3.97 from $3.76–$3.88, above the $3.89 consensus.

It narrowed FY2025 sales outlook to $39.392 billion–$40.150 billion, versus the $39.564 billion consensus.

Price Action: USFD shares are trading lower by 2.61% to $72.21 at last check on Thursday.

Read Next:

XPeng To Offer Robotaxi Hailing Through Alibaba's Amap In 2026