Sales

+1.1%

Modest sales growth to $19,598 million in Q3 2025, up from $19,380 million in Q3 2024, suggests that incremental increases—possibly from slight volume gains or pricing adjustments—were achieved; however, this growth was less robust than previous periods’ improvements. " "

Operating Income

-5.8%

Operating income dropped to $681 million from $722 million, indicating that rising operating expenses or margin compression (likely due to higher input costs and cost pressures) more than offset the slight revenue gains, reflecting challenges in maintaining cost efficiency compared to last year. " "

Net Earnings

-5.5%

Net earnings declined to $401 million from $424 million, showing that despite a marginal sales increase, increased expense pressures and possibly higher non-operating costs or tax impacts eroded overall profitability relative to the previous period. " "

Basic EPS

-$0.02 (from $0.85 to $0.83)

Basic EPS fell slightly to $0.83 from $0.85, mirroring the decline in net earnings; this minor drop indicates that per-share profitability did not keep pace with the modest sales improvements due to underlying cost and expense pressures. " "

Net Sales Growth

FY 2025

4% to 5% "

3% "

lowered

Adjusted EPS Growth

FY 2025

6% to 7% "

at least 1% "

lowered

Inflation Assumptions

FY 2025

approx 2% "

2% "

no change

Net Leverage

FY 2025

2.5 to 2.75x "

2.5x "

lowered

Cost Savings

FY 2025

no prior guidance

$100 million "

no prior guidance

Tax Rate

Q4 2025

no prior guidance

24% "

no prior guidance

Adjusted Depreciation & Amortization

Q4 2025

no prior guidance

$200 million "

no prior guidance

Interest Expense

Q4 2025

no prior guidance

$107 million "

no prior guidance

Share Repurchases

Q4 2025

no prior guidance

$550 million "

no prior guidance

Dividends

Q4 2025

no prior guidance

$250 million "

no prior guidance

Sales Productivity

In Q2 2025, Sysco emphasized progress in sales headcount, ramping through the new compensation model and focusing on the quality of new hires. " " " In Q4 2024, discussions centered on ramp training, strategic hiring, and the introduction of a new variable compensation model to drive productivity. " "

In Q3 2025, Sysco highlighted that new sales consultant cohorts are on track to meet targets, with productivity improvements expected to positively impact Q4 2025 local volume growth. " " "

Consistent focus on ramping up new hire productivity with continual improvements; sentiment remains positive with expectations for tailwind effects in subsequent periods. " " "

Employee Retention Management

Q2 2025 noted that retention had stabilized after earlier turnover, driven partly by benefits from the new compensation model. " " " Q4 2024 emphasized improved retention rates through training and structural improvements, with retention metrics more than doubling compared to the prior year. " "

Q3 2025 reported that employee retention has stabilized following earlier turnover challenges and is expected to become a tailwind in fiscal 2026, bolstered by improved retention efforts, training, and support from supervisors. " " "

Steady improvement in retention trends with stabilization after prior challenges; sentiment has shifted from overcoming headwinds to expecting future benefits. " " "

Pricing Strategy

Q4 2024 focused on a disciplined pricing approach—selling competitively but not below cost—and maintained strong margin discipline. " " Q2 2025 did not discuss pricing strategy specifically.

Q3 2025 introduced a new local pricing agility pilot to empower frontline sales to match competitor prices rapidly and maintain margins, marking a tactical evolution in pricing strategy. "

Evolving approach: while earlier periods emphasized traditional, disciplined pricing, Q3 2025 now experiments with pricing agility to better respond to market competition. " " "

Online Transparency

This topic was not mentioned in Q4 2024 or Q2 2025.

In Q3 2025, Sysco discussed how increased online ordering has led to greater price transparency, influencing customer behavior by making value comparisons more evident. "

New focus: Online transparency is emerging as a strategic issue, reflecting shifts toward digital ordering and greater customer price visibility. "

Capital Allocation

Q4 2024 discussed a balanced approach with strong share repurchase and dividend programs, backed by operating cash flow and liquidity targets. " " In Q2 2025, similar themes were emphasized with an increased repurchase target and the use of sale-leaseback transactions to redeploy capital. " " "

In Q3 2025, Sysco reiterated its balanced capital allocation strategy with continued strong share repurchases, dividends, and robust liquidity, supporting both long-term investments and shareholder returns. " " "

Consistent commitment: Capital allocation remains a cornerstone, with steady shareholder returns and disciplined liquidity management across periods. " " " " " "

Dividend Growth

In Q4 2024, dividend aristocrat status was reinforced with expectations to pay over $1 billion in dividends for FY 2025. " " Q2 2025 similarly emphasized the company’s long history of dividend growth and commitment to shareholder returns. " "

Q3 2025 continued the narrative with an increase in the quarterly cash dividend and reiteration of long-term dividend growth plans—part of the broader capital allocation strategy. " "

Steady and predictable: Dividend growth remains a consistent priority, with incremental increases reaffirmed in each period. " " " " " "

Cost Efficiency Initiatives

Q4 2024 highlighted structural expense reductions through digital automation, shared services, and procurement efficiencies—achieving over $120 million in savings. " " Q2 2025 focused on targeted corporate expense reductions and strategic sourcing to deliver annualized savings over $100 million. " "

Q3 2025 outlined a $100 million cost savings program incorporating strategic sourcing and inbound logistics improvements, with additional operational efficiency gains despite challenges from weather impacts. " " "

Ongoing emphasis: The commitment to cost efficiency is consistent, with incremental improvements and clear targets maintained amid evolving cost-saving programs. " " " " " "

Operational Efficiency

Q4 2024 showcased improvements through corporate expense reductions, technology implementations, and new distribution centers to enhance efficiency. " " Q2 2025 discussed enhanced supply chain staffing, improved transportation routing, and operational improvements driving profit growth. " " "

Q3 2025 focused on a mix of operational initiatives including cost savings programs, strong inventory turnover, and strategic investments, alongside challenges from weather disruptions affecting logistics. " " " "

Consistent drive: Operational efficiency remains a priority; while infrastructure and process improvements persist, Q3 2025 introduces external challenges (e.g. weather) that require adaptive strategies. " " " "

Macro Environment

Q4 2024 noted broad macro challenges such as declining restaurant foot traffic, inflation from prior years, and election uncertainties. " " " Q2 2025 discussed moderate declines in restaurant traffic and occasional weather/calendar impacts but maintained cautious optimism. " " "

Q3 2025 highlighted more pronounced external uncertainties with historically low consumer confidence, significant adverse weather (wildfires and winter storms), and tariff-related volatility—leading to lower full-year guidance. " " " "

Heightened concerns: While macro uncertainties have been a constant theme, Q3 2025 reflects an increase in external challenges and a more cautious short-term outlook compared to earlier periods. " " " "

Local Market Performance

In Q4 2024, Sysco reported modest local case growth with a focus on disciplined expansion and initiatives (e.g., Sysco Your Way neighborhoods) to boost penetration. " " " " Q2 2025 acknowledged a 1.9% decline in local case volumes but outlined service and capacity investments aimed at future recovery and improved new customer acquisition. " " " "

Q3 2025 saw a 3.5% decline in local volume due to industry headwinds and weather challenges, but improvements were noted later in the quarter and new customer wins were strong, supported by pilot initiatives like pricing agility. " " " "

Mixed sentiment: Local market performance remains challenging due to external factors; however, proactive customer acquisition and pilot initiatives signal an optimistic mid- to long-term approach. " " " "

Customer Acquisition

Q4 2024 emphasized growing customer counts with initiatives to serve previously unserved segments and Total Team Selling to drive up-average order values. " " Q2 2025 noted a significant ramp-up in new customer win rates driven by sales team hires and the new compensation model. " " "

Q3 2025 continued to record strong new account wins (with March being a standout month) despite headwinds in local volume, and retention efforts were ramped up to mitigate industry churn. " "

Sustained focus: Customer acquisition remains a key growth driver with continual adjustments in incentive programs and sales strategies, though external challenges slightly dampen overall volume in Q3 2025. " "

Total Team Selling

In Q4 2024, Total Team Selling was highlighted as a transformative initiative—integrating produce and protein specialists with Broadline sales to drive threefold spending by customers. " " Q2 2025 also mentioned Total Team Selling in conjunction with the new compensation model and specialty products expansion to boost margins and customer penetration. "

Q3 2025 earnings did not reference Total Team Selling or related specialty expansion initiatives, marking an absence compared to the previous periods.

Reduced emphasis: Previously a highlighted growth lever in Q4 2024 and Q2 2025, Total Team Selling is no longer mentioned in Q3 2025 discussions, possibly indicating a shift in focus or prioritization in the current quarter. " " "