Financial Performance - Net earnings for the 13-week period ended December 27, 2025, were $389 million, compared to $406 million for the same period in 2024, representing a decrease of approximately 4.2%[55] - Basic earnings per share for the 13-week period ended December 27, 2025, were $0.81, down from $0.83 in the prior year, reflecting a decline of 2.4%[55] - Comprehensive income for the second quarter of fiscal 2026 was $430 million, significantly higher than $176 million for the same quarter in fiscal 2025, indicating an increase of 143.2%[56] - The total comprehensive income for the first 26 weeks of fiscal 2026 was $876 million, compared to $839 million for the same period in fiscal 2025, showing a growth of 4.4%[56] - Total sales for the 13-week period ended December 27, 2025, reached $20,762 million, an increase from $20,151 million in the same period of 2024, representing a growth of 3.0%[79] - Total segment operating income for the 13-week period ended December 27, 2025, was $964 million, compared to $952 million for the same period in 2024, reflecting a 1.3% increase[79] - Total operating income for the 26-week period ended December 27, 2025, was $1,493 million, a decrease from $1,519 million in the same period of 2024, representing a decline of 1.7%[80] Shareholder Information - The weighted-average diluted shares outstanding for the 13-week period ended December 27, 2025, were 480,662,627, compared to 492,803,849 for the same period in 2024, a decrease of approximately 2.4%[55] - Approximately 3,503,000 securities were excluded from the diluted earnings per share calculation for the second quarter of fiscal 2026 due to anti-dilutive effects[55] - Sysco granted options to purchase 724,780 shares with a weighted average grant-date fair value of $19.53 during the first 26 weeks of fiscal 2026[64] - A total of 456,430 performance share units (PSUs) were granted, with a weighted average grant-date fair value of $86.23[65] - Sysco recognized share-based compensation costs of $64 million for the first 26 weeks of fiscal 2026, compared to $60 million for the same period in fiscal 2025[68] - As of December 27, 2025, there was $188 million of unrecognized compensation cost related to share-based compensation arrangements, expected to be recognized over 2.00 years[68] Income and Expenses - Cost of sales for the 13-week period ended December 27, 2025, was $16,981 million, compared to $16,509 million in 2024, indicating an increase of 2.9%[79] - Interest expense for the 13-week period ended December 27, 2025, was $173 million, compared to $160 million in the same period of 2024, indicating an increase of 8.1%[79] - Global Support Center expenses for the 13-week period ended December 27, 2025, were $272 million, up from $240 million in 2024, reflecting a rise of 13.3%[79] - Earnings before income taxes for the 13-week period ended December 27, 2025, were $510 million, compared to $533 million in the same period of 2024, showing a decrease of 4.3%[79] Comprehensive Income and Adjustments - The foreign currency translation adjustment for the 13-week period ended December 27, 2025, resulted in an income of $53 million, contrasting with a loss of $257 million for the same period in 2024[58] - The total other comprehensive income (loss) for the 13-week period ended December 27, 2025, was $36 million, compared to a loss of $230 million for the same period in 2024[59] - The change in cash flow hedges for the 13-week period ended December 27, 2025, resulted in a loss of $15 million before tax, with a net effect of $11 million[58] - As of December 27, 2025, the total accumulated other comprehensive loss was $1,088 million, a decrease from $1,129 million as of September 27, 2025[61] Taxation and Benefits - The effective tax rate for the first 26 weeks of fiscal 2026 was 22.1%, higher than the statutory rate of 21.0% due to state income taxes and other factors[69] - Sysco purchased approximately $200 million of Transferable Tax Credits to apply against fiscal 2026 federal income taxes[73] - The gross amount of unrecognized tax benefits as of December 27, 2025, was $68 million, with related accrued interest of $19 million[71] - The balance of pension and other postretirement benefits as of December 27, 2025, was $(132) million[62] - The balance of marketable securities as of December 27, 2025, was $(903) million[62] Capital and Assets - Capital expenditures for the 26-week period ended December 27, 2025, totaled $300 million, down from $333 million in 2024, reflecting a decrease of 9.9%[81] - Total assets as of December 27, 2025, amounted to $27,181 million, an increase from $26,774 million as of June 28, 2025, representing a growth of 1.5%[82]

Investors applauded the foodservice leader's efforts to mitigate inflation.Shares of Sysco (SYY +10.96%) popped on Tuesday after the food distributor said its full-year profits would come in near the top of its forecast.By the close of trading, Sysco's stock price was up more than 10%. Solid performance in a challenging economic environmentSysco's sales rose 3% year over year to $20.8 billion in the quarter ended Dec. 27. The food giant's gross profit, in turn, grew 3.9% to $3.8 billion, as its gross margin ...

Welcome back to Market on Close. I'm Sam Bartis on the floor of the New York Stock Exchange. So shares of Cisco, that's the food and beverage supplier having its best day in over 5 years after a strong earnings report and that is the focus of today's overlooked stock.So I'm joined by George Ser, senior markets correspondent. Talk us through what we heard from this company and you know obviously the reaction we're seeing today off the back of this report card. George.Yeah, I mean if you think about what's go ...

Gross profit totaled $3.8 billion, up 3.9%, while gross margin increased to 18.3%. Adjusted operating expenses were $3 billion, or 14.4% of sales, a 15-basis-point increase from the prior year. Cheung said the increase reflected planned investments (fleet, building expansion, and sales headcount) and the lapping of $16 million in incentive compensation from the year-ago quarter, which he said negatively impacted adjusted operating expenses by about 60 basis points and adjusted EPS growth by about 270 basis ...

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Core Insights - Sysco Corporation (SYY) reported strong second-quarter fiscal 2026 results, with both revenue and earnings increasing year over year, surpassing the Zacks Consensus Estimate, driven by improving volume trends and margin expansion [1][9] Financial Performance - Adjusted earnings per share were 99 cents, exceeding the Zacks Consensus Estimate of 98 cents, marking a 6.5% increase year over year [2] - Total sales reached $20.8 billion, a 3% year-over-year increase, nearly matching the Zacks Consensus Estimate of $20.81 billion, with foreign exchange movements contributing 0.7% to sales growth [3] - Gross profit rose 3.9% to $3.8 billion, with gross margin improving by 15 basis points to 18.3%, driven by pricing actions and sourcing initiatives [4] - Operating expenses increased by 5.5% year over year to $3.1 billion, leading to a 2.8% decline in operating income to $692 million, while adjusted operating income increased by 3.1% to $807 million [5] Segment Performance - U.S. Foodservice Operations saw sales increase by 2.4% year over year to $14.4 billion, with local case volume improving by 1.2% [6] - International Foodservice Operations reported a 7.3% year-over-year sales increase to $4 billion, with adjusted operating income surging 25.6% to $162 million [7][8] - The SYGMA segment's sales edged up 0.5% year over year to $2.1 billion, with operating income improving by 10.5% [8] - The Other segment experienced a sales decline of 3.4% year over year to $254 million, although operating income improved modestly [10] Financial Health - Sysco ended the quarter with $1.2 billion in cash and cash equivalents, and total liquidity of $2.9 billion, generating $611 million in operating cash flow and $413 million in free cash flow during the first half of fiscal 2026 [11] - Capital expenditures totaled $198 million for the first 26 weeks of fiscal 2026, with $518 million returned to shareholders through dividends [12] Future Outlook - Management expects adjusted earnings per share for fiscal 2026 to be at the high end of the previously issued guidance range of $4.50-$4.60, despite an approximate $100 million adverse effect from incentive compensation comparisons [13]

Core Viewpoint - Sysco Corporation reported strong second-quarter fiscal 2026 results, with adjusted earnings per share exceeding analyst expectations, leading to a rise in stock price [1][6]. Quarterly Metrics - Quarterly sales reached $20.762 billion, reflecting a 3.0% year-over-year increase and closely aligning with analyst expectations of $20.767 billion [2]. - U.S. Foodservice volume increased by 0.8%, while U.S. local volumes grew by 1.2% [2]. - Operating income decreased by 2.8% to $692 million, while adjusted operating income increased by 3.1% to $807 million [3]. - EBITDA fell by 0.9% to $923 million, whereas adjusted EBITDA rose by 3.3% to $1.0 billion [3]. - The company reported a cash balance of $1.2 billion and total liquidity of $2.9 billion at the end of the quarter [4]. Outlook - Sysco expects fiscal 2026 adjusted EPS growth to be at the high end of the previously provided guidance range of $4.50-$4.60, aligning with long-term financial targets [5]. - The company anticipates adjusted EPS growth at the high end of its 5% to 7% long-term target, excluding a $100 million headwind from lower incentive compensation in fiscal 2025 [6]. - Sysco shares increased by 7.36% to $81.20 following the earnings report [6].

Sysco (NYSE:SYY) Q2 2026 Earnings call January 27, 2026 10:00 AM ET Company ParticipantsJohn Heinbockel - Managing DirectorKenny Cheung - CFOKevin Hourican - Chair of the Board and CEOKevin Kim - VP of Investor RelationsLauren Silberman - DirectorMark Carden - Director of Equity ResearchConference Call ParticipantsAlexander Slagle - AnalystDanilo Gargiulo - Senior Research AnalystJake Bartlett - Senior Equity Research AnalystJeffrey Bernstein - Equity Research AnalystJohn Ivankoe - Managing Director and Equ ...

Sysco (NYSE:SYY) Q2 2026 Earnings call January 27, 2026 10:00 AM ET Company ParticipantsJohn Heinbockel - Managing DirectorKenny Cheung - CFOKevin Hourican - Chair of the Board and CEOKevin Kim - VP of Investor RelationsLauren Silberman - DirectorMark Carden - Director of Equity ResearchConference Call ParticipantsAlexander Slagle - AnalystDanilo Gargiulo - Senior Research AnalystJake Bartlett - Senior Equity Research AnalystJeffrey Bernstein - Equity Research AnalystJohn Ivankoe - Managing Director and Equ ...

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