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]