Net Sales

+1.1% " " "

Despite a challenging environment marked by declining U.S. Foodservice volumes (‐2.0% overall and ‐3.5% in local volumes in Q3 2025), net sales grew from $19.4 billion to $19.6 billion, reflecting continued growth initiatives and acquisition efforts compared to Q3 2024. " " "

Gross Profit Margin

Declined by 35 basis points to 18.27% " "

Although gross profit remained flat at $3.6 billion, rising costs of sales impacted margins in Q3 2025 relative to Q3 2024, indicating increased cost pressures amid modest sales growth. " "

Operating Income

-3.3% (from $799 million to $773 million) " "

Operating income declined due to rising operating expenses and restructuring costs, with U.S. Foodservice operations experiencing a sharper decline (9.7%) compared to previous periods, highlighting persistent operational challenges. " " "

Operating Expenses

+0.5% to $2.9 billion " "

The slight uptick in operating expenses is driven by incremental costs associated with digital transformation, supply chain improvements, and other strategic initiatives, building on the prior period's expense base. " "

Restructuring/Transformation Costs

Increased by 78.6% YoY " " "

Q3 2025 saw a marked increase in restructuring and transformation costs relative to Q3 2024, reflecting intensified investments in operational and technological initiatives to reposition the business for long‑term growth. " " "

Acquisition-Related Costs

Decreased by 14.3% YoY " " "

Compared to the significant acquisition-related expenses in Q3 2024, the costs declined in Q3 2025, suggesting improved integration and due diligence processes that have reduced the incremental cost burden of acquisitions. " " "

Adjusted EBITDA

-0.8% to $969 million " "

A modest decline in adjusted EBITDA reflects the combined impact of modest sales increases offset by higher cost pressures and continued investments, a trend consistent with the previous period’s financial dynamics. " "

International Segment Performance

Revenue: -1.1%; Operating Income: +17.4% " "

While international revenue fell slightly by 1.1% YoY, operating income jumped by 17.4% due to effective local cost management and margin improvements, indicating a turnaround from prior challenges in the segment. " "

SYGMA Segment

Net Sales: +9.5% to $2.1 billion; Operating Income: Flat "

The SYGMA segment benefited from a favorable customer mix leading to a robust 9.5% increase in net sales, even as operating income remained unchanged, reflecting a strategic repositioning that builds on lessons learned in earlier periods. "

Net Sales Growth (%)

FY 2026

no prior guidance

3% to 5%, reaching approximately $84 billion to $85 billion " "

no prior guidance

Adjusted EPS ($USD)

FY 2026

no prior guidance

$4.5 to $4.6, representing growth of 1% to 3% (includes a $100 million headwind, $0.16 per share impact) "

no prior guidance

Tax Rate (%)

FY 2026

no prior guidance

23.5% to 24% "

no prior guidance

Adjusted Depreciation and Amortization ($USD Millions)

FY 2026

no prior guidance

$870 million "

no prior guidance

Interest Expense ($USD Millions)

FY 2026

no prior guidance

$700 million "

no prior guidance

Other Expense ($USD Millions)

FY 2026

no prior guidance

$45 million "

no prior guidance

Capital Expenditures (CapEx) ($USD Millions)

FY 2026

no prior guidance

$700 million "

no prior guidance

Shareholder Returns ($USD Billions)

FY 2026

no prior guidance

Approximately $1 billion in share repurchases and a dividend payout with a 6% year-over-year increase "

no prior guidance

Net Debt Leverage Ratio

FY 2026

no prior guidance

Expected to end the year within the target of 2.5 to 2.75 times "

no prior guidance

Salesforce Productivity, Retention, and Ramp‑Up

Q3 discussions highlighted new hire ramp‑up challenges and gradual productivity improvements with headcount growth and turnover issues ( " " " ). Q2 commentary focused on onboarding, compensation model adjustments, and stabilization of retention following higher turnover ( " " " ).

Q4 details show enhanced sales productivity with the rollout of an AI‑powered CRM, a revamped Perks program, stabilized retention, and confidence in reaching key productivity milestones, paving the way for tailwinds in fiscal 2026 ( " " " " ).

Improved sentiment and operational performance as earlier turnover challenges have been mitigated, leading to a more positive outlook for future growth.

Innovative Technological Initiatives and Pricing Agility

Q3 mentioned a pilot pricing agility initiative and emphasized change management to improve pricing decisions and customer responsiveness ( " " ). Q2 did not include discussion of these innovations (N/A).

Q4 introduces the AI360 CRM tool with robust features, a nationwide rollout of enhanced pricing tools, and integration with growth initiatives such as Perks 2.0; execution challenges are acknowledged but overall sentiment is bullish ( " " " ).

Increased emphasis and scaled rollout with innovative technologies taking on a broader role compared to earlier emphasis on pilots.

Macro Environment and External Headwinds

Q3 focused on significant weather disruptions (wildfires, winter storms), a steep decline in consumer confidence, tariff uncertainties, and a marked deceleration in restaurant traffic ( " " " ). Q2 referenced weather events (hurricanes and winter storms) and noted modest restaurant traffic declines with limited commentary on tariffs/consumer confidence ( " " " ).

Q4 reveals a rebound in industry foot traffic with monthly improvements and an overall moderated external headwind environment, even as challenges like tariffs and consumer confidence are mentioned, the focus has shifted toward market share capture ( " " ).

A moderation of external challenges with improved traffic trends and a more balanced macro outlook compared to heightened negative sentiment in previous quarters.

Cost Management and Operational Efficiency

Q3 discussions emphasized solid progress on a $100 million profit improvement effort through strategic sourcing, capacity investments, and operational efficiencies, despite some deal delays ( " " " ). Q2 highlighted similar themes with active sourcing initiatives, distribution capacity expansion, and corporate expense reductions ( " " " " ).

Q4 reports further progress with strategic sourcing driving a 3.9% growth in gross profit, sustained capacity investments, and ongoing cost saving initiatives that continue to deliver improved margins and expense reduction ( " " " " ).

Consistent focus with enhanced results as operational efficiency remains a priority and incremental gains are evident across periods.

Capital Allocation and Dividend Growth

Q3 noted a balanced capital strategy with share repurchases ($700 million to $1.25 billion year‑to‑date) and a 6% increase in dividends, supported by solid liquidity ( " " " ). Q2 outlined an upsized share repurchase plan to $1.25 billion and confirmed dividend commitments as part of a broader shareholder return strategy ( " " " ).

Q4 continues the strong capital allocation approach with $1.3 billion in share repurchases and a planned 6% year‑over‑year dividend increase for fiscal 2026, reinforcing the company’s dividend aristocrat status ( " " ).

Steady and reinforcing positive sentiment as shareholder returns remain strong and commitments are maintained across periods.

Local Business Performance and Brand Sales Dynamics

Q3 described local case volume declines of 3.5% with pressures from sales turnover and declining Sysco brand penetration due to mix shifts; pricing agility pilots and shorter term sequential improvements were noted ( " " " " " ). Q2 reported a 1.9% decline in local case volume with challenges from adverse events and a noted decline in Sysco-branded product penetration ( " " " " ).

Q4 highlights improved local case volume performance (up 200 basis points improvement, achieving a negative 1% rate when excluding unprofitable segments) with reduced customer losses and exit of weak businesses, while there was no new mention of declining Sysco brand sales ( " " ).

Recovering local performance with targeted exits and improved retention, though brand sales dynamics remain a concern that is less prominently featured in Q4 than prior periods.