Sysco Corp
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.15%.
Did SYY Beat Earnings? Q4 2025 Results
Sysco delivered a solid beat to close out fiscal 2025, posting adjusted earnings per share of $1.48 against a consensus estimate of $1.39, a 6.47% positive surprise, as revenue climbed 2.8% year over year to $21.14 billion, edging past the $21.02 billion Wall Street had anticipated. The key driver behind the performance was sequential improvement in local volumes, which gained 200 basis points during the quarter, with CEO Kevin Hourican pointing to a particularly strong June exit rate and continued momentum into July as early evidence that Sysco-specific initiatives are gaining traction despite a 0.3% decline in U.S. Foodservice volumes amid soft industry foot traffic. Gross margin expanded 19 basis points to 18.9%, helped by disciplined management of 3.5% product cost inflation concentrated in meat and dairy. The International Foodservice Operations segment stood out, delivering 26.1% operating income growth. Looking ahead, Sysco guided for FY26 sales of $84 billion to $85 billion and adjusted EPS of $4.50 to $4.60, though the outlook carries a roughly $100 million headwind from lapping lower prior-year incentive compensation, with underlying EPS growth of 5% to 7% when that impact is excluded.
- Effective management of product cost inflation (3.5% at enterprise level, primarily in meat and dairy)
- USFS local volumes improved sequentially by 200 bps with strong June exit rate
- International Foodservice Operations delivered double-digit profit growth (26.1% operating income increase)
- Gross margin expanded 19 basis points to 18.9%
- Improved restaurant industry traffic
- Sysco-specific operational initiatives
“Sysco's Q4 results exceeded expectations, as improved financial outcomes were driven by Sysco-specific initiatives and improved restaurant industry traffic. Specific to our business, USFS local volumes improved sequentially by 200 bps, including a strong exit rate in June. Importantly, drivers of our progress accelerated during the quarter, with the momentum continuing in July, an encouraging signal as we begin the next fiscal year of profitable growth”
Sysco CEO, on the earnings call
Forward Guidance & Outlook
Sysco introduced FY26 guidance with sales growth of approximately 3% to 5% to approximately $84 billion to $85 billion and adjusted EPS growth of approximately 1% to 3% to approximately $4.50 to $4.60. This includes an approximate $100 million ($0.16 per diluted share) headwind from lapping lower incentive compensation in fiscal 2025. Excluding this impact, the outlook reflects EPS growth of approximately 5% to 7%, with the midpoint in-line with the long-term algorithm. The company plans to reward shareholders with approximately $1 billion in dividends and approximately $1 billion in share repurchases for FY26. Management noted continued macro uncertainties but expressed confidence in operational execution momentum continuing from the strong June exit rate into July.
SYY YoY Financials
SYY Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.