Performance Food Group Company shares fall over 11% pre-market, currently trading at $82.99.

Performance Food Group Company shares fall over 11% pre-market, currently trading at $82.99.

Performance Food Group Shares Drop Over 11% Pre-Market Amid Earnings Concerns

Performance Food Group Company (PFGC) shares fell more than 11% in pre-market trading on February 26, 2026, declining to $82.99, following a mixed earnings report and revised outlook for fiscal 2026. The stock, which closed at $97.31 the previous day, extended its decline with a 3.14% drop in regular trading hours, reflecting investor concerns over margin pressures and operational challenges.

The company reported second-quarter fiscal 2026 results on February 22, with revenue of $16.44 billion, aligning with expectations. However, earnings per share came in at $2.21, below the $2.40 projected by analysts. Margins faced headwinds from deflationary pressures and higher acquisition-related costs, according to a Morgan Stanley analysis, which downgraded its outlook for the company. Additionally, PFGC announced plans to issue $1.06 billion in 5.625% senior notes due 2034 to strengthen its balance sheet, a move that raised questions about debt management amid rising interest rates.

Analyst sentiment has shifted in recent weeks. UBS lowered its price target for PFGC from $127 to $126, maintaining a "Buy" rating, while Citigroup reiterated its "Strong Buy" stance despite the stock's volatility. The stock's 52-week range of $68.39–$109.05 indicates significant volatility, with the current price near the lower end of that spectrum.

Comparatively, peers in the food distribution sector, such as US Foods Holding Corp. (USFD) and Sysco (SYY), have shown more stable performance, with PFGC trailing in both market capitalization ($14.8 billion) and year-to-date returns. The company's trailing P/E ratio of 42.65, while higher than the S&P 500's 24.3, reflects ongoing valuation concerns as investors weigh growth potential against operational risks.

With earnings expectations revised downward and debt levels rising, PFGC faces near-term challenges in restoring investor confidence. The stock's performance will likely hinge on its ability to navigate margin pressures and integrate recent acquisitions effectively.