Sysco closed fiscal 2026 with higher sales, stronger quarterly profit growth, and a new fiscal 2027 outlook that points to another year of expansion.
For the fourth quarter ended June 27, 2026, sales rose 4.7% to $22.1 billion from a year earlier. Gross profit increased 3.7% to $4.1 billion, while operating income climbed 10.6% to $983 million. Net earnings increased 3.8% to $551 million, and diluted earnings per share rose 4.5% to $1.15.
Volume trends also improved. U.S. foodservice total case volume increased 2.5% in the quarter, while U.S. local case volume rose 2.6%. In the international business, local volume grew 4.5%.
The company said fourth-quarter gross margin was 18.7%, down 17 basis points from the prior year. Operating margin improved to 4.4% from 4.2%, a gain of 23 basis points.
Sysco’s international segment posted the sharpest profit growth in the quarter. Sales increased 6.7% to $4.2 billion, gross profit rose 7.3% to $909 million, and adjusted operating income climbed 15.7% to $228 million. On a constant-currency basis, international sales were up 5.6% and adjusted operating income rose 14.7%.
In U.S. foodservice, quarterly sales increased 4.4% to $15.4 billion. Gross profit rose 3.0% to $3.0 billion, and operating income increased 2.4% to $1.0 billion. The segment’s operating margin narrowed to 19.2% from 19.6%, down 26 basis points.
For the full fiscal year, sales rose 3.9% to $84.6 billion. Gross profit increased 4.5% to $15.6 billion, and gross margin improved to 18.5% from 18.4%, up 10 basis points. Operating income edged up 0.2% to $3.1 billion, while net earnings fell 3.9% to $1.8 billion. Diluted EPS declined 1.9% to $3.66.
Full-year volume growth was more modest than the quarterly pace. U.S. foodservice total case volume increased 1.4%, and local case volume rose 1.7%.
Cash generation strengthened over the year. Cash flow from operations increased 5.1% to $2.6 billion, and free cash flow rose 16.3% to $2.1 billion. Capital expenditures, net of proceeds from sales of plant and equipment, totaled $524 million.
Sysco ended the quarter with $1.8 billion in cash and $4.8 billion of total liquidity. During fiscal 2026, it returned $1.2 billion to shareholders, including $1.0 billion in dividends and $200 million in share repurchases.
Looking ahead to fiscal 2027, Sysco is guiding for sales growth of 6% to 7% and adjusted EPS growth of 9% to 11% on a 53-week basis. The company said that outlook includes about $100 million of efficiency improvements tied to AI-driven business process changes and customer engagement, along with incremental cost-out efforts expected to contribute to a combined $100 million of net cost savings in fiscal 2027. Today the company's shares have moved -2.97% to a price of $82.455. If you want to know more, read the company's complete 8-K report here.
