Access comprehensive financial analyses and make smarter investments - get the Manual of Investments on Amazon!

SYY

Sysco Corp Reports 3.9% Sales Growth in Fiscal 2026

SYSCO CORP has recently released its 10-K report. Sysco Corporation distributes food and related products to foodservice customers in the United States, Canada, the United Kingdom, France and other international markets through four segments: U.S. Foodservice Operations, International Foodservice Operations, SYGMA and Other. Its product mix includes frozen foods, canned and dry goods, fresh meat and seafood, dairy, beverages, produce, paper goods, tableware, restaurant equipment and cleaning supplies, and it serves restaurants, healthcare and educational facilities, lodging, industrial caterers and similar venues.

In Item 7, Sysco said fiscal 2026 sales rose 3.9% to $84.6 billion, up $3.2 billion from fiscal 2025, with growth across U.S. Foodservice Operations, International Foodservice Operations and SYGMA. Gross profit increased 4.5%, while operating income edged up 0.2% to $3.1 billion; on an adjusted basis, operating income rose 2.6% to $3.6 billion. Net earnings declined 3.9% to $1.8 billion, but adjusted net earnings increased 1.4% to $2.2 billion.

Earnings per share moved lower on a reported basis, with basic EPS at $3.67 and diluted EPS at $3.66, both down 1.9% from the prior year. Adjusted diluted EPS increased to $4.61 from $4.46. EBITDA fell 0.7% to $4.0 billion, while adjusted EBITDA rose 2.2% to $4.4 billion.

Sysco said the sales increase reflected inflation, volume growth and contributions from recent acquisitions. The company pointed to higher gross profit from strategic sourcing efforts and stronger volumes from local customers, partly offset by increased sales headcount investment, restructuring and transformation costs, higher incentive compensation, and acquisition and due diligence expenses.

The company said it serves about 18% of an estimated $377 billion annual U.S. foodservice market as of the end of calendar year 2025, and Technomic projects that market at about $390 billion by the end of calendar year 2026. Sysco also said the foodservice market represented about 56% of total consumer food spending in the U.S. at the end of calendar year 2025. Following these announcements, the company's shares moved 0.93%, and are now trading at a price of $83.83. Check out the company's full 10-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

IN FOCUS