Sysco (SYY) Q1 2027 Earnings
Adjusted EPS of $1.19 excludes items included in GAAP diluted EPS of $1.09: - a $234 million gain on deal contingent rate lock transactions related to the planned Jetro Restaurant Depot acquisition (-$0.49 per share pre-tax); - $90 million of bridge loan debt issuance cost amortization ($0.19 per share pre-tax); - $108 million of acquisition-related costs ($0.22 per share pre-tax); - $102 million of restructuring, transformational project and other costs ($0.21 per share pre-tax).
How Did SYY Stock React to Q1 2027 Earnings?
Did SYY Beat Earnings? Q1 2027 Results
No. Sysco reported Q1 2027 earnings of $1.19 a share on Nov 3, 2026, missing the $1.19 consensus estimate by 0.1%. Revenue was $21.7B against a $22.0B estimate.
Sysco Corporation opened fiscal 2027 with a modest miss on both the top and bottom lines, as the foodservice distributor reported first-quarter adjusted EPS of $1.19, falling just short of the $1.19 consensus, while revenue of $21.74 billion trailed the $22.02 billion estimate by 1.27%, even as sales climbed 2.8% year over year. The primary story beneath the headline numbers was the pending Jetro Restaurant Depot acquisition, which generated a $234 million gain on deal contingent rate lock transactions but simultaneously drove $90 million in bridge loan debt issuance costs and $108 million in acquisition-related charges, causing GAAP results to diverge sharply from adjusted figures. On the operational side, U.S. Foodservice case volume accelerated meaningfully from a year ago, and gross margin expanded 18 basis points to 18.6%, aided by strategic sourcing and Sysco Brand penetration reaching 46.6% of local cases. CEO Kevin Hourican cited softer restaurant foot traffic and muted food cost inflation as headwinds, yet management reiterated fiscal 2027 adjusted EPS growth guidance of 9% to 11%, with full-year sales growth now expected at the lower end of the 6% to 7% range.
- U.S. Foodservice case volume up 2.6% and local case volume up 2.7%
- Gross margin up 18 bps to 18.6% on local volume growth, tariff-related benefits, strategic sourcing efficiencies and Sysco Brand penetration
- Sysco Brand share of local cases rose to 46.6% from 46.2%
- International adjusted operating income up 12.2% with gross margin up 45 bps to 21.3%
- Product cost inflation of 0.3% at the enterprise level, primarily in meat
- $234 million gain on deal contingent rate lock transactions boosted GAAP other income
- $90 million bridge loan amortization raised GAAP interest expense to $261 million
- Acquisition costs related to Jetro Restaurant Depot drove a 10.4% decline in GAAP operating income
“We are pleased to report a strong start to fiscal 2027. Our Q1 adjusted EPS performance was in-line with our expectations, fueled by positive volume growth, expanding gross margins, and disciplined expense control.”
Sysco CEO, on the earnings call
What Is Sysco's Outlook?
Sysco reiterated its fiscal 2027 guidance for adjusted EPS growth of 9%-11% and unchanged local volume growth assumptions of approximately 2.5%. Full-year sales growth is now expected at the lower end of the 6%-7% range, reflecting a lower inflation environment for the industry. Management remains confident in AI-enabled net cost savings, including about $100 million included in fiscal 2027 guidance, with benefits accelerating in the second half. The company continues to prepare for the anticipated closing of the Jetro Restaurant Depot acquisition.
SYY YoY Financials
| Metric | Q1 2027 | Q1 2026 | Year over year |
|---|---|---|---|
| Revenue | $21.7B | $21.1B | +2.8% |
| Gross Profit | $4.1B | $3.9B | +3.9% |
| Operating Income | $717.0M | $800.0M | −10.4% |
| Net Income | $526.0M | $476.0M | +10.5% |
SYY Revenue by Segment
When Does Sysco Report Next?
Figures from SEC filings and company reports. Not investment advice.