Kevin J. Kim Alexander Russell Slagle - Jefferies LLC, Research Division Edward Joseph Kelly - Wells Fargo Securities, LLC, Research Division Jake Rowland Bartlett - Truist Securities, Inc., Research Division Jeffrey Andrew Bernstein - Barclays Bank PLC, Research Division John Edward Heinbockel - Guggenheim Securities, LLC, Research Division John William Ivankoe - JPMorgan Chase & Co, Research Division Kelly Ann Bania - BMO Capital Markets Equity Research Mark David Carden - UBS Investment Bank, Research Di ...

Core Insights - Sysco Corporation (SYY) reported strong fourth-quarter fiscal 2025 results, with both sales and earnings exceeding expectations and showing year-over-year growth [1][2]. Financial Performance - Adjusted earnings per share (EPS) reached $1.48, surpassing the Zacks Consensus Estimate of $1.40, marking a 6.5% increase year over year [2]. - Total sales amounted to $21,138 million, reflecting a 2.8% year-over-year increase and beating the consensus estimate of $21,002 million [2]. - Gross profit rose 3.9% to $4 billion, with the gross margin improving by 19 basis points to 18.9% [3]. - Operating income declined 9% to $889 million, while adjusted operating income increased by 1.1% to $1.1 billion, resulting in an adjusted operating margin decrease of 9 basis points to 5.2% [5]. Segment Performance - U.S. Foodservice Operations saw sales rise 2.4% year over year to $14.8 billion, despite a 0.3% decline in total case volume [7]. - International Foodservice Operations experienced a 3.6% sales increase to $3.93 billion, with a notable 8.3% growth when excluding the divested Mexico joint venture [9]. - The SYGMA segment's sales reached $2,164 million, up 5.9% year over year, while the Other segment's sales fell 7.1% to $288 million [12]. Financial Health - As of the end of the quarter, Sysco had cash and cash equivalents of $1.07 billion, long-term debt of $12.4 billion, and total shareholders' equity of $1.83 billion [14]. - The company returned $2.3 billion to shareholders in fiscal 2025 through share buybacks and dividends [15]. Future Outlook - For fiscal 2026, Sysco expects sales growth of 3-5%, targeting $84-$85 billion, and adjusted EPS growth of 1-3%, aiming for $4.50-$4.60 [16]. - The guidance includes a $100 million headwind related to lower incentive compensation from the previous year [16]. - The company plans to return $2 billion to shareholders in fiscal 2026, split evenly between dividends and share repurchases [17].

Financial Data and Key Metrics Changes - The company reported sales of $21.1 billion, an increase of 2.8% on a reported basis and 3.7% excluding the divestiture of the Mexican business [7][8] - Adjusted operating income was $1.1 billion, up 1.1% year-over-year, and adjusted EPS grew to $1.48, reflecting a 6.5% increase compared to the previous year [8][27] - Gross profit increased by 3.9%, leading to a gross margin expansion of 19 basis points [28][33] Business Line Data and Key Metrics Changes - The international segment achieved 3.6% top-line growth on a reported basis and 8.3% excluding the divestiture of Mexico, with local case growth of 4% [9][30] - The U.S. Foodservice segment saw a 1.3% volume growth, with gross profit growing almost three times faster than volume [10][30] - The Sigma business reported top-line growth of 8.3% and bottom-line growth of 12.5%, marking a record year [11] Market Data and Key Metrics Changes - Restaurant traffic improved throughout the quarter, with a decline of 1.1% overall, which was an improvement of approximately 190 basis points compared to Q3 [6][30] - The company noted that the industry traffic trends were stabilizing after a rocky start to the year, with April down 1.5%, May down 1%, and June down approximately 0.9% [6][30] Company Strategy and Development Direction - The company is focused on improving local case volume growth through strategic initiatives and investments in sales resources [14][16] - The introduction of the Perks 2.0 customer loyalty program aims to enhance service for top customers, while an AI-powered sales tool is expected to improve sales productivity [20][22][105] - The company plans to continue expanding its international supply chain capacity and enhance customer engagement through technology improvements [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver profitable local volume growth in 2026, driven by stabilized colleague retention and improved productivity [18][44] - The company anticipates that the positive momentum from Q4 will carry into 2026, with expectations for improved financial results [24][48] - Management highlighted the importance of colleague retention and productivity as key drivers for future growth [18][44] Other Important Information - The company repurchased $1.3 billion in shares and paid out $1 billion in dividends during fiscal year 2025 [29] - The balance sheet remains robust with approximately $3.8 billion in total liquidity and a net debt leverage ratio of 2.85 times [36] Q&A Session Summary Question: On local case growth momentum and market share - Management noted that while Q4 showed progress, the stabilization of colleague retention will have a significant positive impact as they enter 2026, with a notable gap between new customer wins and losses [51][54][56] Question: Broader industry trends and sustaining momentum - Management attributed the recent improvement in industry traffic to a stabilization of consumer confidence and expects to sustain growth through market share gains despite a flat macro environment [65][67][70] Question: International growth momentum - Management expects continued strength in the international segment, driven by increased sales resources and strategic sourcing initiatives [81][82][87] Question: Sales force growth and local case growth relationship - Management anticipates a 4% increase in sales professional headcount for fiscal 2026, emphasizing the importance of colleague retention and productivity in driving positive local case growth [92][94][96] Question: Price agility initiative and financial implications - Management clarified that the goal of the price agility initiative is to improve volume profitably without sacrificing margin percentage, with a careful rollout based on colleague readiness [100][102][105]

Core Insights - Sysco reported revenue of $21.14 billion for the quarter ended June 2025, marking a year-over-year increase of 2.8% and exceeding the Zacks Consensus Estimate by 0.65% [1] - The earnings per share (EPS) for the same period was $1.48, up from $1.39 a year ago, representing a surprise of 5.71% over the consensus estimate of $1.40 [1] Revenue Breakdown - International Foodservice Operations generated $3.93 billion, surpassing the average estimate of $3.88 billion, with a year-over-year change of 3.6% [4] - U.S. Foodservice Operations reported $14.76 billion, slightly above the estimated $14.72 billion, reflecting a 2.4% increase compared to the previous year [4] - Sales from Other operations were $288 million, below the average estimate of $297.6 million, showing a year-over-year decline of 7.1% [4] - SYGMA sales reached $2.16 billion, exceeding the estimated $2.13 billion, with a year-over-year increase of 5.9% [4] Operating Income and Gross Profit - Operating income for Other operations was reported at -$82 million, significantly lower than the average estimate of $18.01 million [4] - SYGMA's operating income was $27 million, slightly above the average estimate of $24.92 million [4] - Gross profit for Other operations was $69 million, below the average estimate of $79.64 million, while SYGMA's gross profit was $170 million, marginally exceeding the estimate of $169.27 million [4] Stock Performance - Sysco's shares have returned 6.1% over the past month, outperforming the Zacks S&P 500 composite's 3.6% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - Sysco reported Q4 sales of $21.1 billion, an increase of 2.8% on a reported basis and 3.7% excluding the divestiture of the Mexican business [6][26] - Adjusted operating income for the quarter was $1.1 billion, up 1.1% year-over-year, with adjusted EPS growth of $1.48, reflecting a 6.5% increase compared to last year [6][25] - The company achieved a gross profit of $4 billion, up 3.9%, with gross margins expanding by 19 basis points to 18.9% [30][25] Business Line Data and Key Metrics Changes - The international segment experienced 3.6% top-line growth on a reported basis and 8.3% growth excluding the divestiture of Mexico, with adjusted operating income increasing by 20.1% [7][29] - The U.S. Foodservice segment saw a 1.3% volume growth, with gross profit growing almost three times faster than volume due to improved profitability efforts [8][25] - Sigma business achieved top-line growth of 8.3% and bottom-line growth of 12.5%, marking a record year [10] Market Data and Key Metrics Changes - Restaurant traffic improved throughout the quarter, with a decline of 1.1% overall, which was an improvement of approximately 190 basis points compared to Q3 [5][6] - The company noted that the industry is stabilizing after a challenging start to the year, with traffic trends showing a gradual recovery [5][6] Company Strategy and Development Direction - Sysco plans to focus on improving local business performance and enhancing sales colleague productivity through training and retention initiatives [15][41] - The company is implementing strategic sourcing initiatives and expanding its international supply chain capacity, with a new facility set to open outside London [13][14] - Sysco aims to leverage its competitive advantages, including geographic diversity and a wide product assortment, to capture a larger share of the food away from home market [42][43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver positive and profitable local case growth in fiscal 2026, driven by stabilized colleague retention and improved productivity [15][41] - The leadership team highlighted the importance of colleague retention in reducing customer loss rates and improving overall business performance [40][41] - Sysco anticipates continued strong performance in the international segment and expects to maintain momentum into fiscal 2026 [7][29] Other Important Information - Sysco repurchased $1.3 billion in shares and paid out $1 billion in dividends during fiscal 2025, demonstrating a commitment to shareholder returns [26][37] - The company expects reported net sales growth of approximately 3% to 5% for fiscal 2026, with adjusted EPS growth projected at 1% to 3% [34][36] Q&A Session Summary Question: On local case growth momentum and market share - Management noted that while Q4 showed improvement, the stabilization of colleague retention will significantly impact customer loss rates in 2026, leading to positive growth [48][50] Question: Broader industry trends and sustaining momentum - Management attributed recent improvements to a stabilization in consumer confidence and expects to sustain growth through new customer wins and improved retention strategies [60][62] Question: International growth momentum and specific drivers - Management expressed confidence that international growth will continue, driven by increased sales resources and strategic sourcing initiatives [75][79] Question: Sales force growth and local case growth relationship - Management plans to increase sales professional headcount by approximately 4% in fiscal 2026, expecting this to lead to positive local case growth [86][88] Question: Financial implications of price agility initiative - Management clarified that the goal of the price agility initiative is to improve volume profitably without sacrificing margin rates, emphasizing the importance of sales colleague training [94][96]

Sysco (SYY) came out with quarterly earnings of $1.48 per share, beating the Zacks Consensus Estimate of $1.4 per share. This compares to earnings of $1.39 per share a year ago. These figures are adjusted for non- recurring items. This quarterly report represents an earnings surprise of +5.71%. A quarter ago, it was expected that this food distributor would post earnings of $1.03 per share when it actually produced earnings of $0.96, delivering a surprise of -6.8%. Over the last four quarters, the company h ...

Financial Highlights - Fiscal Q4 2025 revenue grew by 2.8% year-over-year to $21.1 billion[9, 27] - Gross profit increased by 3.9% year-over-year to $4.0 billion[9, 27] - Adjusted EPS increased by 6.5% year-over-year to $1.48[9, 28] - International segment adjusted operating income grew by 20.1% year-over-year to $197 million[9, 41] - SYGMA's net sales increased by 5.9% year-over-year to $2.2 billion[44] Segment Performance - U S Foodservice (USFS) net sales increased by 2.4% year-over-year to $14.8 billion[37] - USFS local volume declined 1.5% year-over-year, showing a 200 basis point sequential improvement from Q3[9, 29, 39] - International sales increased by 3.6% year-over-year to $3.9 billion[41] - SYGMA's net sales increased by 5.9% year-over-year to $2.2 billion[44] Fiscal Year 2025 Results - Net sales increased by 3.2% year-over-year to $81.4 billion[47] - Gross profit increased by 2.5% year-over-year to $15.0 billion[47, 49] - Adjusted EBITDA increased by 2.4% year-over-year to $4.3 billion[49] - Adjusted EPS increased by 3.5% year-over-year to $4.46[49] Fiscal Year 2026 Guidance - Sales growth is projected to be between 3% and 5%[68] - Adjusted EPS growth is projected to be between 1% and 3%, but 5% to 7% excluding incentive compensation headwind[68]

智通财经7月29日电，食品巨头西思科发布2026财年指引，预计2026年净销售额将增长约3%至5%，预 计2026年调整后每股收益将增长约1%至3%。 ...

[Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) Sysco's financial performance in FY2025 showed mixed results, with adjusted growth in Q4 and full year, alongside strategic capital allocation and future guidance [Fourth Quarter (Q4) FY2025 Performance](index=1&type=section&id=Fourth%20Quarter%20(Q4)%20FY2025%20Performance) Sysco's Q4 FY2025 results exceeded expectations with sales up 2.8% to $21.1 billion, and adjusted net earnings growing 3.3% despite a goodwill impairment - Q4 results exceeded expectations, driven by Sysco-specific initiatives and improved restaurant industry traffic. U.S. Foodservice (USFS) local volumes improved sequentially by **200 bps**, with momentum continuing into July[2](index=2&type=chunk) Q4 FY2025 Key Financial Results (vs Q4 FY2024) | Metric | Q4 FY2025 | Change (YoY) | | :--- | :--- | :--- | | Sales | $21.1 billion | +2.8% | | Gross Profit | $4.0 billion | +3.9% | | Operating Income (GAAP) | $889 million | -9.0% | | **Adjusted Operating Income** | **$1.1 billion** | **+1.1%** | | Net Earnings (GAAP) | $531 million | -13.2% | | **Adjusted Net Earnings** | **$716 million** | **+3.3%** | | EPS (GAAP) | $1.10 | -10.6% | | **Adjusted EPS** | **$1.48** | **+6.5%** | - The company recorded a **$92 million** non-cash goodwill impairment charge related to its Guest Worldwide business, which impacted GAAP results. This charge amounted to **$0.17 per share**[8](index=8&type=chunk) [Full Fiscal Year (FY) 2025 Performance](index=2&type=section&id=Full%20Fiscal%20Year%20(FY)%2025%20Performance) Full fiscal year 2025 sales increased 3.2% to $81.4 billion, with adjusted net earnings up 0.8% to $2.2 billion despite GAAP declines Full Year FY2025 Key Financial Results (vs FY2024) | Metric | FY2025 | Change (YoY) | | :--- | :--- | :--- | | Sales | $81.4 billion | +3.2% | | Gross Profit | $15.0 billion | +2.5% | | Operating Income (GAAP) | $3.1 billion | -3.6% | | **Adjusted Operating Income** | **$3.5 billion** | **+1.2%** | | Net Earnings (GAAP) | $1.8 billion | -6.5% | | **Adjusted Net Earnings** | **$2.2 billion** | **+0.8%** | | EPS (GAAP) | $3.73 | -4.1% | | **Adjusted EPS** | **$4.46** | **+3.5%** | - Product cost inflation for the full year was **2.5%** at the enterprise level, primarily in the dairy and poultry categories[15](index=15&type=chunk) [Fiscal Year (FY) 2026 Guidance](index=1&type=section&id=Fiscal%20Year%20(FY)%2026%20Guidance) Sysco projects FY2026 sales growth of 3% to 5% to $84-85 billion, with adjusted EPS growth of 1% to 3%, or 5% to 7% excluding a $100 million headwind FY2026 Financial Outlook | Metric | Guidance | | :--- | :--- | | Sales Growth | 3% to 5% | | Sales | ~$84 billion to $85 billion | | Adjusted EPS Growth | 1% to 3% | | Adjusted EPS | ~$4.50 to $4.60 | | Adjusted EPS Growth (Ex-Incentive Comp Headwind) | 5% to 7% | - The FY26 outlook includes an approximate **$100 million** (or **$0.16 per diluted share**) headwind from lapping lower incentive compensation from FY25[3](index=3&type=chunk) [Capital Allocation](index=2&type=section&id=Capital%20Allocation) Sysco returned $2.3 billion to shareholders in FY2025 and plans to return approximately $2 billion in FY2026 through dividends and share repurchases - For FY2026, the company plans to return capital to shareholders with approximately **$1 billion** in dividends and **$1 billion** in share repurchases[3](index=3&type=chunk) - In FY2025, the company returned a total of **$2.3 billion** to shareholders, consisting of **$1.3 billion** in share repurchases and **$1.0 billion** in dividends[12](index=12&type=chunk)[21](index=21&type=chunk) [Segment Performance Analysis](index=2&type=section&id=Segment%20Performance%20Analysis) Sysco's segments showed varied performance, with strong international growth offsetting U.S. Foodservice volume pressures and an impairment in other segments [U.S. Foodservice Operations](index=2&type=section&id=U.S.%20Foodservice%20Operations) U.S. Foodservice Operations saw modest sales growth but faced volume pressures and decreased adjusted operating income in FY2025 due to industry traffic and investments U.S. Foodservice Q4 FY2025 Performance (vs Q4 FY2024) | Metric | Q4 FY2025 | Change (YoY) | | :--- | :--- | :--- | | Sales | $14.8 billion | +2.4% | | Local Case Volume | - | -1.5% | | Gross Profit | $2.9 billion | +2.8% | | Adjusted Operating Income | $1.1 billion | -0.8% | U.S. Foodservice Full Year FY2025 Performance (vs FY2024) | Metric | FY2025 | Change (YoY) | | :--- | :--- | :--- | | Sales | $57.0 billion | +2.9% | | Total Case Volume | - | +0.5% | | Local Case Volume | - | -1.4% | | Adjusted Operating Income | $3.6 billion | -3.0% | [International Foodservice Operations](index=2&type=section&id=International%20Foodservice%20Operations) International Foodservice Operations delivered strong double-digit adjusted operating income growth in FY2025, driven by effective margin management and local volume expansion International Foodservice Q4 FY2025 Performance (vs Q4 FY2024) | Metric | Q4 FY2025 | Change (YoY) | | :--- | :--- | :--- | | Sales | $3.9 billion | +3.6% | | Sales (Constant Currency) | $3.8 billion | +1.0% | | Adjusted Operating Income | $197 million | +20.1% | | Adj. Op. Income (Constant Currency) | $193 million | +17.7% | International Foodservice Full Year FY2025 Performance (vs FY2024) | Metric | FY2025 | Change (YoY) | | :--- | :--- | :--- | | Sales | $14.9 billion | +2.4% | | Sales (Constant Currency) | $14.9 billion | +2.6% | | Adjusted Operating Income | $585 million | +18.9% | | Adj. Op. Income (Constant Currency) | $585 million | +18.9% | - Excluding the impact of the Mexico joint venture divestiture, sales grew **8.3%** in Q4 and **4.8%** for the full fiscal year for the International segment[13](index=13&type=chunk)[20](index=20&type=chunk) [Other Segments (SYGMA & Other)](index=18&type=section&id=Other%20Segments%20(SYGMA%20%26%20Other)) SYGMA segment showed solid growth, while the 'Other' segment incurred a significant operating loss due to a $92 million goodwill impairment charge SYGMA Segment Performance FY2025 (vs FY2024) | Metric | FY2025 | Change (YoY) | | :--- | :--- | :--- | | Sales | $8.41 billion | +8.3% | | Operating Income | $81 million | +12.5% | Other Segment Performance FY2025 (vs FY2024) | Metric | FY2025 | Change (YoY) | | :--- | :--- | :--- | | Sales | $1.09 billion | -7.3% | | Operating (Loss) Income | ($73 million) | Not Meaningful | | Adjusted Operating Income | $19 million | -62.0% | - The 'Other' segment's GAAP operating loss was driven by a **$92 million** goodwill impairment charge in Q4[46](index=46&type=chunk)[49](index=49&type=chunk) [Financial Statements & Condition](index=4&type=section&id=Financial%20Statements%20%26%20Condition) Sysco maintained a strong financial position in FY2025 with solid liquidity, increased assets, and managed debt, despite a decrease in operating cash flow [Balance Sheet and Liquidity](index=4&type=section&id=Balance%20Sheet%20and%20Liquidity) As of June 28, 2025, Sysco maintained strong liquidity with $1.1 billion cash and $3.8 billion total liquidity, alongside increased assets and a Net Debt to Adjusted EBITDA ratio of 2.9 times Key Balance Sheet Items (as of June 28, 2025) | Item | June 28, 2025 | June 29, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $1,071 million | $696 million | | Total current assets | $11,968 million | $11,043 million | | Total assets | $26,774 million | $24,917 million | | Total debt (Current + Long-term) | $13,309 million | $11,982 million | | Total liabilities | $24,917 million | $23,026 million | | Total shareholders' equity | $1,830 million | $1,860 million | - The company's Net Debt to Adjusted EBITDA ratio was approximately **2.9 times** at the end of the fiscal year[21](index=21&type=chunk)[23](index=23&type=chunk) [Cash Flow](index=4&type=section&id=Cash%20Flow) In FY2025, operating cash flow decreased to $2.5 billion, resulting in free cash flow of $1.8 billion, primarily due to working capital changes Consolidated Cash Flows (FY2025 vs FY2024) | Cash Flow Activity | FY2025 | FY2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $2,510 million | $2,989 million | | Net cash used for investing activities | ($717 million) | ($1,962 million) | | Net cash (used for) provided by financing activities | ($1,412 million) | ($1,038 million) | - Free cash flow for FY2025 was **$1.8 billion**, a decrease of **$418 million** from the prior year[22](index=22&type=chunk)[52](index=52&type=chunk) [Non-GAAP Reconciliations & Other Disclosures](index=12&type=section&id=Non-GAAP%20Reconciliations%20%26%20Other%20Disclosures) This section clarifies Sysco's use of non-GAAP financial measures, provides reconciliations, and outlines forward-looking statements with associated risks [Explanation of Non-GAAP Measures](index=12&type=section&id=Explanation%20of%20Non-GAAP%20Measures) Sysco utilizes non-GAAP measures like adjusted operating income and EPS to present underlying business trends by excluding specific non-recurring or non-operational items - Non-GAAP measures are used to provide perspective on underlying business trends by removing certain items[36](index=36&type=chunk) - Key adjustments include: restructuring/severance costs, transformation project costs, acquisition-related costs, and a goodwill impairment charge in FY2025[36](index=36&type=chunk) [Reconciliation of GAAP to Non-GAAP Results](index=13&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Results) In FY2025, GAAP operating income of $3.1 billion was adjusted to $3.5 billion, and GAAP net earnings of $1.8 billion to $2.2 billion, primarily due to restructuring, acquisition, and impairment charges FY2025 Reconciliation of GAAP Operating Income to Adjusted Operating Income | Description | Amount (in millions) | | :--- | :--- | | **Operating Income (GAAP)** | **$3,088** | | Impact of restructuring and transformational project costs | +$183 | | Impact of acquisition-related costs | +$160 | | Impact of goodwill impairment | +$92 | | **Operating Income Adjusted for Certain Items (Non-GAAP)** | **$3,523** | FY2025 Reconciliation of GAAP Net Earnings to Adjusted Net Earnings | Description | Amount (in millions) | | :--- | :--- | | **Net Earnings (GAAP)** | **$1,828** | | Pre-tax adjustments (total) | +$435 | | Tax impact of adjustments | -$89 | | Other non-routine tax adjustments | +$10 | | **Net Earnings Adjusted for Certain Items (Non-GAAP)** | **$2,184** | [Forward-Looking Statements](index=6&type=section&id=Forward-Looking%20Statements) The report includes forward-looking statements on future performance and strategies, which are subject to various risks including economic conditions, inflation, and supply chain disruptions - Forward-looking statements cover expectations for productivity, growth strategies, inflation, capital allocation, and overall financial outlook[26](index=26&type=chunk) - Actual results could differ materially due to risks such as geopolitical and economic conditions, inflation, supply chain risks, and changes in consumer eating habits[27](index=27&type=chunk)

Core Insights - Sysco Corporation reported financial results for the fourth fiscal quarter and the fiscal year ended June 28, 2025, showing improved performance driven by company-specific initiatives and increased restaurant industry traffic [1][2]. Financial Performance Summary - **Fourth Quarter Results**: - Total sales increased by 2.8% to $21.1 billion [5][33]. - Gross profit rose by 3.9% to $4.0 billion, with a gross margin of 18.9% [6][8]. - Operating income decreased by 9.0% to $889 million, while adjusted operating income increased by 1.1% to $1.1 billion [6][10]. - Net earnings fell by 13.2% to $531 million, but adjusted net earnings increased by 3.3% to $716 million [6][10]. - EBITDA decreased by 6.5% to $1.1 billion, while adjusted EBITDA increased by 1.8% to $1.3 billion [6][10]. - Diluted EPS decreased by 10.6% to $1.10, while adjusted EPS increased by 6.5% to $1.48 [6][10]. - **Fiscal Year Results**: - Total sales for the fiscal year increased by 3.2% to $81.4 billion [19][33]. - Gross profit increased by 2.5% to $15.0 billion, with a gross margin of 18.4% [19][33]. - Operating income decreased by 3.6% to $3.1 billion, while adjusted operating income increased by 1.2% to $3.5 billion [19][21]. - Net earnings decreased by 6.5% to $1.8 billion, but adjusted net earnings increased by 0.8% to $2.2 billion [19][21]. - EBITDA decreased by 1.2% to $4.0 billion, while adjusted EBITDA increased by 2.4% to $4.3 billion [19][21]. Segment Performance - **U.S. Foodservice Operations**: - Sales increased by 2.4% to $14.8 billion, with total case volume decreasing by 0.3% [11][23]. - Gross profit increased by 2.8% to $2.9 billion, with a gross margin of 19.5% [11][23]. - Operating income decreased by 2.0% to $1.0 billion [12][24]. - **International Foodservice Operations**: - Sales increased by 3.6% to $3.9 billion, with a constant currency increase of 1.0% [15][25]. - Gross profit increased by 7.6% to $847 million, with a gross margin of 21.6% [16][26]. - Operating income increased by 26.1% to $145 million [18][28]. Cash Flow and Capital Management - The company reported cash flow from operations of $2.5 billion and free cash flow of $1.8 billion for the fiscal year [30][44]. - Sysco returned approximately $2.3 billion to shareholders through $1.3 billion in share repurchases and $1.0 billion in dividends [30][38]. Outlook - Sysco expects sales growth of approximately 3% to 5% for fiscal year 2026, targeting sales of $84 billion to $85 billion [2]. - Adjusted EPS is projected to grow by approximately 1% to 3%, aiming for $4.50 to $4.60 [2]. - The company plans to reward shareholders with approximately $1 billion in dividends and $1 billion in share repurchases for FY26 [2].