Sysco Corp Q3 Sales Up 4.7%

By Chris Stiles • Tuesday, April 28 11:21 • Permanent Link

Sysco reported third-quarter fiscal 2026 sales of $20.5 billion, up 4.7% from a year earlier, as volume improved across its U.S. foodservice business and international operations.

Gross profit rose 6.5% to $3.8 billion, outpacing sales growth and lifting gross margin by 31 basis points to 18.6%. The company said product cost inflation was 2.8% in the quarter, with dairy, meat and seafood driving much of the increase.

Operating income fell 9.1% to $619 million, while operating expenses climbed 10.1% to $3.2 billion. Net earnings declined 15.2% to $340 million. Diluted earnings per share dropped 13.4% to $0.71.

On an adjusted basis, operating income was $768 million, down 0.6%, and adjusted net earnings were $452 million, down 3.6%. Adjusted diluted EPS came in at $0.94, down 2.1%.

U.S. foodservice sales increased 3.1% to $14.2 billion. Total case volume in the segment rose 2.3%, while local case volume increased 3.3%, the strongest quarterly local growth in more than three years. Gross profit in the segment increased 5.2% to $2.7 billion, and operating income rose 2.4% to $772 million.

International foodservice sales increased 12.4% to $3.9 billion, with gross profit up 14.6% to $834 million. Operating income fell 13.5% to $83 million, though adjusted operating income rose 12.5% to $144 million.

For the first 39 weeks of fiscal 2026, Sysco reported sales of $62.4 billion, up 3.6%. Gross profit increased 4.8% to $11.5 billion. Operating income fell 4.0% to $2.1 billion, and net earnings declined 7.0% to $1.2 billion. Adjusted net earnings rose 1.0% to $1.5 billion.

Cash flow from operations reached $1.5 billion in the first 39 weeks, up 11%, while free cash flow rose 19% to $1.1 billion. Sysco returned $978 million to shareholders during the period, including $200 million in share repurchases and $778 million in dividends.

At quarter-end, Sysco had $1.9 billion in cash and total liquidity of $4.4 billion. Following these announcements, the company's shares moved 0.99%, and are now trading at a price of $76.56. If you want to know more, read the company's complete 8-K report here.

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