Sysco(US:SYY)2026-01-27 22:47Financial 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]