SYSCO REPORTS FIRST QUARTER 2026 RESULTS; REITERATES FY26 GUIDANCE HOUSTON, October 28, 2025 - Sysco Corporation (NYSE:SYY) ("Sysco" or the "company") today announced financial results for its 13-week first fiscal quarter ended September 27, 2025. Key financial results for the first quarter of fiscal year 2026 include the following (comparisons are to the same period in fiscal year 2025): "We are pleased with the start to our fiscal 2026, with solid improvement in our sales performance, margin management, a ...

Core Insights - Sysco Corporation reported a solid start to fiscal year 2026, with improved sales performance, margin management, and supply chain operations, leading to adjusted EPS performance exceeding expectations [1][2] - The company anticipates full-year sales growth of 3%-5% and adjusted EPS growth of 1%-3%, with an adjusted outlook reflecting EPS growth of approximately 5% to 7% when excluding the impact of lower incentive compensation from fiscal 2025 [2] Financial Performance - Total sales for the first quarter increased by 3.2% to $21.1 billion compared to the same period in fiscal year 2025 [4][22] - Gross profit rose by 3.9% to $3.9 billion, with gross margin increasing by 13 basis points to 18.5% [5][22] - Operating income decreased by 1.0% to $800 million, while adjusted operating income increased by 2.9% to $898 million [6][22] - Net earnings fell by 2.9% to $476 million, but adjusted net earnings increased by 2.0% to $551 million [8][22] Segment Performance - U.S. Foodservice Operations saw sales increase by 2.9% to $14.8 billion, with total case volume increasing by 0.1% [9][22] - International Foodservice Operations reported a 4.5% increase in sales to $4.0 billion, with comparable sales growth of 7.9% when excluding the impact of the Mexico joint venture [12][22] Cost Management - Operating expenses increased by 5.3%, driven by investments in business capacity and sales headcount [6][22] - Product cost inflation was recorded at 3.4%, primarily affecting meat and seafood categories, but effective management helped mitigate its impact on gross profit [5][22] Balance Sheet and Cash Flow - As of the end of the quarter, Sysco had a cash balance of $844 million and total liquidity of $3.5 billion [17] - The company returned $259 million to shareholders via dividends during the first quarter, with cash flow from operations at $86 million and free cash flow negative at $50 million [17][18]

Group 1 - Sysco Corporation is collaborating with the MICHELIN Guide to announce the latest Texas recipients of Michelin stars, with a ceremony scheduled for October 29, 2025, in Houston [1][2] - The MICHELIN Guide is recognized globally for its prestigious ratings and reviews, representing a high standard in culinary achievement [2] - Sysco's South Texas Region President, Ryan Forth, emphasized the importance of honoring chefs for their contributions to creating memorable dining experiences [2][3] Group 2 - Sysco provides a wide range of products and innovative solutions to the foodservice community, supporting chefs in enhancing their menu concepts [3][7] - The MICHELIN Guide Young Chef Award will be presented by Sysco at the upcoming ceremony, highlighting the significance of emerging culinary talent [4][5] - Sysco has been in partnership with the MICHELIN Guide since November 2024, celebrating Texas chefs and their achievements [5] Group 3 - Sysco is the global leader in distributing food and related products to various sectors, including restaurants, healthcare, and educational facilities, with over $81 billion in sales for fiscal year 2025 [6][7] - The company operates 339 distribution centers across 10 countries, serving approximately 730,000 customer locations with a workforce of 75,000 [6][7] - Sysco offers customized supply chain solutions and culinary support to help customers innovate and optimize their operations [7]

Core Insights - Sysco Corporation is expected to report an increase in both revenues and earnings for the first quarter of fiscal 2026, with revenues estimated at $21.1 billion, reflecting a 3% growth year-over-year [1] - The consensus estimate for earnings per share is stable at $1.12, indicating a 2.8% increase from the previous year's figure [2] Factors Influencing Upcoming Results - Improved customer retention is supporting Sysco's recovering local case performance, as the company rebuilds long-term relationships after previous salesforce turnover [3] - The International segment is anticipated to remain a growth driver, supported by expanded sales headcount and localized assortment [4] - Digital advancements, including an AI-powered CRM platform and the Perks 2.0 loyalty program, are enhancing sales efficiency and customer engagement, likely contributing to stronger retention and profitability [5] Challenges Facing Sysco - Rising product costs and higher operating expenses are negatively impacting profitability [6] - Soft restaurant traffic, weaker consumer confidence, and macroeconomic uncertainty are dampening demand [6] - Increased competition and currency volatility in international markets are exerting pressure on pricing and overall profitability [6] Earnings Prediction Insights - The current model does not predict an earnings beat for Sysco, as it holds a Zacks Rank of 4 (Sell) and an Earnings ESP of 0.00% [7]

We came across a bullish thesis on Sysco Corporation on CompoundingLab’s Substack. In this article, we will summarize the bulls’ thesis on SYY. Sysco Corporation's share was trading at $78.27 as of October 13th. SYY’s trailing and forward P/E were 22.32 and 18.18 respectively according to Yahoo Finance. 7 Most Lawless Places in the US f11photo/Shutterstock.com Sysco Corporation, the world’s largest foodservice distributor, serves as a quiet but essential pillar of the global supply chain. With over 700, ...

Core Insights - Sysco Corporation (SYY) is a major player in the foodservice distribution industry, with a market cap of $38.2 billion, and is set to announce its fiscal first-quarter earnings for 2026 on October 28 [1] Financial Performance Expectations - Analysts anticipate SYY to report a profit of $1.12 per share for the upcoming quarter, reflecting a 2.8% increase from $1.09 per share in the same quarter last year [2] - For the full fiscal year, EPS is expected to be $4.57, marking a 2.5% increase from $4.46 in fiscal 2025, with a projected rise to $5.02 in fiscal 2027, representing a 9.9% year-over-year growth [3] Stock Performance - Over the past 52 weeks, SYY stock has increased by 5.8%, underperforming the S&P 500 Index's 14.8% gains but outperforming the Consumer Staples Select Sector SPDR Fund's 3.1% losses [4] - Following a better-than-expected Q4 performance, SYY's shares dropped by 2.5% on July 29, despite reporting revenue of $21.1 billion and adjusted EPS of $1.48, both exceeding consensus estimates [5] Analyst Ratings - The consensus opinion on SYY stock is moderately bullish, with 11 out of 17 analysts recommending a "Strong Buy" and six advising a "Hold," indicating an average price target of $86.07, suggesting a potential upside of 7.7% from current levels [6]

Core Insights - Kyndryl has been recognized as Sysco's inaugural Tech Partner of the Year for its excellence in delivering a multiyear ERP upgrade and modernization of Sysco's IT environment, enhancing reliability and efficiency in Sysco's distribution operations [1][3][4] Company Overview - Sysco is the global leader in selling, marketing, and distributing food and related products to customers who prepare meals away from home, operating 339 distribution centers across 10 countries and serving approximately 730,000 customer locations [5][6] - In fiscal year 2025, Sysco generated sales exceeding $81 billion [5] Partnership Impact - The partnership with Kyndryl aims to create a simpler and more flexible technology foundation, ensuring uninterrupted delivery of food and supplies to various customers, including restaurants, hotels, and hospitals [2][3] - Kyndryl's contributions have allowed Sysco to accelerate its IT roadmap while reducing operating costs, demonstrating a collaborative approach rather than a vendor-client relationship [3][4] Future Outlook - Kyndryl expresses commitment to continue supporting Sysco in delivering exceptional experiences across the foodservice and supply chain industry, focusing on critical innovations and operational efficiency [4]

Core Insights - The analysis focuses on Sysco Corporation (NYSE: SYY) and emphasizes the importance of high-quality companies that can outperform the market over the long term due to competitive advantages and defensibility [1]. Group 1 - The author has not published an article on Sysco for nearly 22 months, indicating a significant gap in coverage [1]. - The analysis is centered on companies in Europe and North America, without restrictions on market capitalization, covering both large and small cap companies [1]. - The author's academic background includes a Master's Degree in Sociology with a focus on organizational and economic sociology, as well as a Bachelor's Degree in Sociology and History [1].

Core Points - Sysco Corporation will host a conference call and webcast to discuss its first quarter fiscal year 2026 financial results on October 28, 2025 at 10 a.m. EDT [1] - Interested parties can listen online at Sysco's investor relations website, where a news release and slide presentation will also be available [2] - Sysco uses its investor relations website as the primary channel for public disclosure of key information [3] Company Overview - Sysco is the global leader in selling, marketing, and distributing food and related products to customers who prepare meals away from home, including restaurants, healthcare facilities, and educational institutions [4] - The company operates 337 distribution centers across 10 countries, employing 75,000 colleagues and serving approximately 730,000 customer locations [4] - Sysco generated sales of over $81 billion in fiscal year 2025, which ended on June 28, 2025 [4] Services and Offerings - As the largest food-away-from-home distributor, Sysco provides customized supply chain solutions, specialty product offerings, and culinary support to help customers innovate and optimize operations [5] - The company acts as a trusted business partner, offering a portfolio that includes fresh produce, premium proteins, specialty products, sustainably focused items, equipment, supplies, and innovative culinary solutions [5]

Core Insights - Sysco Corp. is the leading distributor of food and related products to the food-away-from-home industry, serving restaurants, healthcare facilities, and lodging establishments [1] Financial Performance - Sysco is set to report its Q3 2025 earnings on October 28, with analysts expecting an EPS of $1.12, an increase from $1.09 in the prior-year period. Quarterly revenue is anticipated to be $21.05 billion, up from $20.48 billion a year earlier [2] - In Q4 2025, Sysco reported an adjusted EPS of $1.48, surpassing the analyst consensus estimate of $1.36, with quarterly sales of $21.14 billion exceeding the expected $21 billion [3] - For the full year 2026, Sysco expects adjusted EPS to be in the range of $4.50 to $4.60, which is below the analyst estimate of $4.68. Projected sales are between $84 billion and $85 billion, compared to the consensus of $84.34 billion [4] Stock and Dividend Information - Sysco's stock price has ranged from $67.12 to $83.47 over the past 52 weeks. The company has a dividend yield of 2.59%, having paid $2.16 per share in dividends over the last 12 months [2] - To earn $100 per month from Sysco dividends, an investment of approximately $46,332 is needed, which equates to around 556 shares at a price of $83.27 each [4][5]