Sysco Set to Report Q2 Earnings: Here's What to Expect From SYY

Core Viewpoint - Sysco Corporation (SYY) is expected to report growth in both revenue and earnings for the second quarter of fiscal 2026, with revenue estimated at $20.8 billion, reflecting a 3.3% increase year-over-year [1]. Revenue Expectations - The consensus estimate for Sysco's earnings per share (EPS) remains at 97 cents, indicating a 4.3% growth compared to the same quarter last year [2]. - Revenue growth is anticipated to be driven by improvements in U.S. Foodservice local volumes, which showed positive trends in the first quarter and are expected to improve by at least 100 basis points sequentially in the second quarter [3][10]. - The International segment is also expected to contribute to revenue growth, although it may face challenges due to the year-over-year comparison with the Mexico joint venture divestiture completed in fiscal 2025 [4]. Profitability Insights - Profitability in the second quarter is projected to benefit from sustained gross profit performance and disciplined expense management, with gross margin expansion and productivity gains noted in the first quarter [5][10]. - Management has expressed confidence that structural improvements and continued volume momentum will support year-over-year earnings growth in the upcoming quarter [5]. Earnings Prediction - The current model does not predict a definitive earnings beat for Sysco, as it holds a Zacks Rank of 3 (Hold) and an Earnings ESP of 0.00% [6].