Core Insights - Sysco Corporation (SYY) reported strong fourth-quarter fiscal 2025 results, with both sales and earnings exceeding expectations and showing year-over-year growth [1][2]. Financial Performance - Adjusted earnings per share (EPS) reached $1.48, surpassing the Zacks Consensus Estimate of $1.40, marking a 6.5% increase year over year [2]. - Total sales amounted to $21,138 million, reflecting a 2.8% year-over-year increase and beating the consensus estimate of $21,002 million [2]. - Gross profit rose 3.9% to $4 billion, with the gross margin improving by 19 basis points to 18.9% [3]. - Operating income declined 9% to $889 million, while adjusted operating income increased by 1.1% to $1.1 billion, resulting in an adjusted operating margin decrease of 9 basis points to 5.2% [5]. Segment Performance - U.S. Foodservice Operations saw sales rise 2.4% year over year to $14.8 billion, despite a 0.3% decline in total case volume [7]. - International Foodservice Operations experienced a 3.6% sales increase to $3.93 billion, with a notable 8.3% growth when excluding the divested Mexico joint venture [9]. - The SYGMA segment's sales reached $2,164 million, up 5.9% year over year, while the Other segment's sales fell 7.1% to $288 million [12]. Financial Health - As of the end of the quarter, Sysco had cash and cash equivalents of $1.07 billion, long-term debt of $12.4 billion, and total shareholders' equity of $1.83 billion [14]. - The company returned $2.3 billion to shareholders in fiscal 2025 through share buybacks and dividends [15]. Future Outlook - For fiscal 2026, Sysco expects sales growth of 3-5%, targeting $84-$85 billion, and adjusted EPS growth of 1-3%, aiming for $4.50-$4.60 [16]. - The guidance includes a $100 million headwind related to lower incentive compensation from the previous year [16]. - The company plans to return $2 billion to shareholders in fiscal 2026, split evenly between dividends and share repurchases [17].