SYSCO (SYY) Company Report

Sysco delivered 3.2% sales growth, 3.9% gross profit growth, and 5.5% adjusted EPS growth in Q1 FY2026, driven by volume improvement, margin expansion, and expense control.
U.S. Foodservice local volumes inflected positive, with 0.4% growth in Broadline local and 0.3% growth in total USFS local when excluding a FreshPoint exit headwind; the company expects at least a 100 bp sequential improvement in Q2 USFS local volumes.
International segment achieved 4.5% reported sales growth (7.9% ex-Mexico), ~5% local case volume increase, and 13.1% adjusted operating income growth, marking eight consecutive quarters of double-digit profit expansion.
FY2026 guidance maintained for 3–5% net sales growth to $84–85 billion and $4.50–$4.60 adjusted EPS, with approximately $1 billion each in dividends and share repurchases planned.
Financial position remains robust with $3.5 billion liquidity, 2.9× net leverage, $86 million operating cash flow, and a seasonal –$50 million free cash flow in Q1.

Oct 28, 2025, 2:00 PM

Transcript

Sysco announces Q1 FY2026 results

SYY

Earnings

Guidance Update

New Projects/Investments

Sales grew 3.2% (3.8% ex-Mexico), gross profit +3.9%, and adjusted EPS +5.5% in Q1 FY26.
US Foodservice total local volume −0.2%, US Broadline +0.6%, with Sysco Broadline local inflecting to +0.4%; local performance outpaced industry by 120 bps vs. 60 bps, and Q2 local volume expected to improve by +100 bps sequentially.
Gross margin expanded 13 bps to 18.5%, adjusted operating income was $898 M, and adjusted EBITDA $1.1 B; free cash flow was −$50 M reflecting seasonality.
FY26 guidance: net sales up 3–5% to $84–85 B, adjusted EPS $4.50–4.60 (1–3% growth; 5–7% ex-compensation headwind); Q2 EPS growth 4–6% to ~$0.98; ~$1 B dividends and ~$1 B buybacks planned.
Strategic initiatives: rolled out AI 360 (90% SE adoption) and Perks 2.0 driving retention and productivity; acquired Fairfax Meadow to expand UK protein capabilities.

Oct 28, 2025, 2:00 PM

Transcript

Sysco reports Q1 2026 results

SYY

Earnings

Guidance Update

Q1 sales of $21.1 billion (+3.2% YoY), gross profit of $3.9 billion (+3.9%), adjusted operating income of $898 million (+2.9%), and adjusted EPS of $1.15 (+5.5%)
International sales reached $4.0 billion (+4.5% YoY; +7.9% ex-Mexico JV) with adjusted operating income of $147 million (+13.1%)
SYGMA segment delivered $2.1 billion in net sales and operating income of $25 million (+38.9%)
Net debt leverage of 2.90× (vs. 2.74× in Q1 2025), with $12.4 billion in net debt and $3.5 billion in liquidity
Reiterated FY 2026 guidance for sales growth and adjusted EPS growth

Oct 28, 2025, 2:00 PM

Presentation

Sysco announces Q1 2026 results

SYY

Earnings

Guidance Update

Share Buyback

Sales grew 3.2% (3.8% ex-Mexico) with gross profit up 3.9%, gross margin expansion of 13 bps, and Adjusted EPS +5.5% YoY.
US Foodservice local volumes inflected positive (+0.4%), a 130 bps sequential improvement vs. Q4 and over 2× industry traffic gains; expects at least +100 bps further in Q2.
International segment sales +4.5%, gross profit +6.7%, adjusted operating income +13.1%; Sigma delivered 4% sales and 39% operating income growth.
Maintained FY 2026 targets: net sales +3–5% to $84–85 billion; Adjusted EPS $4.50–4.60 (+1–3%); Q2 EPS growth ~4–6%, including USFS local volume +100 bps sequentially.
Robust liquidity ($3.5 billion), 2.9× net leverage, operating cash flow $86 million (+62%), free cash flow −$50 million; dividend up 6% and $1 billion share repurchase plan.

Oct 28, 2025, 2:00 PM

Transcript

Sysco reports Q1 FY2026 results

SYY

Earnings

Dividends

Guidance Update

Sysco’s Q1 sales rose 3.2% to $21.1 billion, while gross profit grew 3.9% to $3.9 billion.
GAAP operating income was $800 million (down 1.0%) and net earnings were $476 million (down 2.9%), with EPS flat at $0.99; adjusted EPS increased 5.5% to $1.15.
Adjusted EBITDA was $1.1 billion (+0.1%), and adjusted net earnings were $551 million (+2.0%).
Free cash flow was negative $50 million, ending cash balance was $844 million, total liquidity $3.5 billion, and the company returned $259 million in dividends.
Sysco reiterated its fiscal 2026 guidance for 3–5% sales growth and 1–3% adjusted EPS growth (5–7% excluding incentive compensation headwind).

Oct 28, 2025, 12:05 PM

8-K

Sysco reports first quarter 2026 results

SYY

Earnings

Sales increased 3.2% to $21.1 billion in Q1 FY26.
Gross profit rose 3.9% to $3.9 billion, with gross margin up 13 bps to 18.5%.
Operating income was $800 million (–1.0% YoY), while adjusted operating income grew 2.9% to $898 million.
Net earnings declined 2.9% to $476 million; adjusted net earnings rose 2.0% to $551 million, EPS flat at $0.99 and adjusted EPS up 5.5% to $1.15.

Oct 28, 2025, 12:03 PM

Press Release

Sysco reports strong start to FY 2026 and growth initiatives

SYY

Revenue Acceleration/Inflection

New Projects/Investments

Sysco kicked off FY 2026 with robust performance: international segment achieved double-digit operating income growth for seven consecutive quarters, while U.S. broadline local case volumes inflected positive and sequentially improved month-over-month through mid-September.
Colleague health and productivity are improving, with retention at its highest level ever, a planned 4% headcount increase (~1,000 sales hires), and the gap between new wins and customer losses doubling in Q4 and widening further in Q1, driving net new account growth.
Launched Perks 2.0 premium loyalty service for top 15% of customers to enhance retention and wallet share, alongside AI 360, an AI-powered CRM app delivering next-best actions, pre-approved deals, and inventory insights to boost salesforce efficiency and new account penetration.
International business (~20% of revenues) posted ~5% sales and ~20% operating income growth in fiscal 2025, expanding margins from ~2% to over 4%, with new distribution centers in Great Britain, Sweden, and Ireland, supported by an active M&A pipeline.

Sep 16, 2025, 3:00 PM

Transcript

Sysco presents FY 2025 performance and FY 2026 outlook at Barclays Conference

SYY

Guidance Update

Share Buyback

New Projects/Investments

Sysco reported $81.0 billion in FY 2025 sales, servicing 730,000 customer locations globally with 60% of revenue derived from restaurants.
International segment (20% of FY 2025 sales) is growing faster than domestic, with profitability doubled over two years and a >$10 billion expansion opportunity, while market share has improved across all countries.
U.S. local broadline business has inflected positive in Q4 and is expected to remain positive in Q1 FY 2026, driven by stabilized sales force retention and productivity improvements.
Management reaffirmed FY 2026 guidance of 3–5% sales growth and 1–3% EPS growth (excluding incentive compensation: 5–7%), supported by continued case volume momentum and supply chain efficiencies.
Capital allocation includes $1 billion of share repurchases, a 3% dividend yield, and continued investment in new distribution centers (Allentown, PA; Tampa, FL) and digital tools (Perks 2.0; AI360) to enhance service and productivity.

Sep 3, 2025, 4:24 PM

Sysco reports Q4 2025 results

SYY

Earnings

Guidance Update

Share Buyback

Q4 net sales $21.1 B, up 2.8% reported (3.7% ex-Mexico); adjusted operating income $1.1 B (+1.1%) and adjusted EPS $1.48 (+6.5%)
International segment sales +3.6% (8.3% ex-Mexico) with adjusted operating income +20.1%, while US Foodservice local case volume down 1.5% (–1.0% ex-exit)
End-Q4 liquidity $3.8 B, net debt leverage 2.85×, operating cash flow $2.5 B and free cash flow $1.8 B
FY26 guidance: net sales +3–5% to $84–85 B, adjusted EPS $4.50–4.60 (+1–3%), dividend +6%, $1 B share repurchases, capex ~$700 M, leverage target 2.5–2.75×

Jul 29, 2025, 7:45 PM

Sysco Corporation Amends Credit Agreement in Q3 2025

SYY

Debt Issuance

Sysco Corporation entered into Amendment No. 2 to its Existing Credit Agreement, incorporating Sysco Global Holdings B. V. as a subsidiary borrower, which permits the new entity to request and accept credit extensions.
The amendment builds on previous credit arrangements, updating the facility established on April 29, 2022, and subsequently amended on June 11, 2024, with customary fees and expenses from the participating banks.

Jun 6, 2025, 12:00 AM

8-K

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