Sysco Beats Modestly but Volume Lags; Guidance Reaffirmed

Core Insights - Sysco Corporation reported first-quarter fiscal 2026 results that slightly exceeded expectations, with adjusted EPS of $1.15 compared to the estimated $1.12, and revenue of $21.1 billion, surpassing the consensus of $21.07 billion [1] Financial Performance - Operating income decreased by 1.0% to $800 million, while adjusted operating income increased by 2.9% to $898 million [2] - Gross profit rose by 3.9% to $3.9 billion, with gross margin expanding by 13 basis points to 18.5% [2] - Operating expenses grew by 5.3% due to investments in capacity and sales headcount, which outpaced revenue growth [2] Segment Performance - The International Foodservice Operations segment showed strong performance, with sales increasing by 4.5% and adjusted operating income rising by 13.1% to $147 million [3] Future Outlook - Sysco maintained its full-year fiscal 2026 targets, projecting 3–5% sales growth and 1–3% adjusted EPS growth [3]