Sysco Stock Earnings Reports

Sysco reported a strong start to fiscal 2026 with a Q1 beat driven by improving volumes, gross margin expansion and supply-chain productivity. Reported sales grew 3.2% (3.8% ex-Mexico divestiture), gross profit rose 3.9% and adjusted EPS increased 5.5%. Key highlights: U.S. Broadline local business inflected to positive in Q1 (local volumes +0.4% for Broadline; USFS local -0.2% including a >50 bps headwind from a FreshPoint exit), with sequential monthly improvement and management guidance for at least +100 bps further improvement in USFS local volume in Q2. International was a standout: reported sales +4.5% (7.9% ex-Mexico) with local volumes ≈+5% and the eighth consecutive quarter of double-digit adjusted operating income growth. Supply-chain performance and colleague retention improved materially, enabling better service levels, lower shrink and higher productivity. New initiatives—AI360 (sales AI tool), Perks 2.0 (customer loyalty/prioritization) and Total Team Selling—are being rolled out and showing early positive results (high adoption of AI360, improved retention, higher new-account growth and +90 bps penetration with existing customers QoQ). Financial posture: management reiterated FY26 guidance of ~3%–5% sales growth (~$84–85B) and adjusted EPS $4.50–$4.60 (1%–3% growth), with liquidity ~$3.5B, net leverage ~2.9x at quarter end (target 2.5–2.75x), ~$1B dividend and ~$1B planned buybacks. Excluding a known incentive-compensation compare, they estimate adjusted EPS growth would be ~5%–7%. Management emphasized momentum is driven largely by initiatives within Sysco's control and expects continued acceleration through FY26.