Sysco Corporation has recently released its 10-Q report, revealing its financial performance for the second quarter of fiscal 2026. The company, headquartered in Houston, Texas, operates through U.S. Foodservice Operations, International Foodservice Operations, SYGMA, and Other segments, distributing a wide range of food and related products to the foodservice industry.
In the second quarter of fiscal 2026, Sysco reported a 3.0% increase in sales, reaching $20.8 billion, driven by growth in its U.S. Foodservice Operations, International Foodservice Operations, and SYGMA segments. The gross profit also increased by 3.9%, attributed to strategic sourcing efforts and effective management of product cost inflation. However, operating income decreased by 2.8% due to increased restructuring and transformational project costs, along with acquisition-related expenses. Adjusted operating income, excluding these costs, increased by 3.1%.
Net earnings for the second quarter of fiscal 2026 decreased by 4.2%, amounting to $389 million. Excluding certain expenses, adjusted net earnings increased by 3.9%. Basic earnings per share decreased by 2.4% to $0.81, while adjusted diluted earnings per share increased by 6.5% to $0.99.
For the first 26 weeks of fiscal 2026, Sysco reported a 3.1% increase in sales, reaching $41.9 billion. Operating income decreased by 1.7%, amounting to $1.5 billion. Adjusted net earnings increased by 3.1% to $1.0 billion, and adjusted diluted earnings per share increased by 5.9% to $2.14.
Sysco's U.S. Foodservice Operations and International Foodservice Operations collectively represented approximately 88.6% of the company's overall sales in both the second quarter and the first 26 weeks of fiscal 2026. They also accounted for a substantial majority of the total segment operating income, illustrating their significant contribution to Sysco's overall results.
Despite challenges in the macroeconomic environment and adverse impacts on consumer sentiment, Sysco remains optimistic about its sales growth in fiscal 2026, considering the food-away-from-home sector as a healthy, long-term growth market. The company's strategic initiatives, including its Recipe for Growth transformation, are expected to drive profitable and consistent growth as it continues to diversify and position itself as a market leader in food service. As a result of these announcements, the company's shares have moved -0.48% on the market, and are now trading at a price of $78.80. If you want to know more, read the company's complete 10-Q report here.
