Sysco Corp
Q2 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: −1.37%.
Did SYY Beat Earnings? Q2 2026 Results
Sysco posted a mixed but operationally encouraging second quarter of fiscal 2026, beating bottom-line expectations while falling just short on revenue. The foodservice distribution giant reported adjusted EPS of $0.99, clearing the $0.98 consensus estimate by 1.39%, even as revenue of $20.76 billion came in fractionally below the $20.78 billion forecast, rising 3.0% year over year. The quarter's most meaningful development was a return to positive local case volume growth of 1.2% in U.S. Foodservice Operations, the third consecutive quarter of sequential improvement and a signal management is leaning on to demonstrate that its growth initiatives are gaining traction. Gross margin expanded 15 basis points to 18.3%, though GAAP operating income slipped 2.8% to $692.00 million as planned investments in sales headcount and an approximately $100.00 million incentive compensation headwind weighed on expenses. Encouragingly, Sysco raised its full-year adjusted EPS guidance to the high end of its $4.50 to $4.60 range, projecting local case growth of at least 2.5% in the second half, even as a recent credit rating downgrade underscores the balance-sheet tradeoffs embedded in its growth strategy.
- U.S. Foodservice local case volume growth turned positive at 1.2%, third consecutive quarter of sequential improvement
- Gross margin expansion of 15 basis points to 18.3% driven by effective management of product cost inflation and strategic sourcing efficiencies
- Product cost inflation of 2.9% at the enterprise level, primarily in meat and seafood categories
- International Foodservice Operations delivered 23.2% GAAP operating income growth and 9.5% gross profit growth
- Adjusted EPS grew 6.5% to $0.99 year-over-year
“Sysco delivered strong results in the second quarter of fiscal year 2026. Our performance was driven by increased local case growth, and gross margin expansion. We delivered our third consecutive quarter of sequentially improving local case growth. More importantly, USFS local case volume is now positive, having delivered positive 1.2% case volume growth in the quarter. Our building momentum and progress with key growth initiatives gives us confidence that we will deliver at least 2.5% local case growth in the 2nd half of the fiscal year. Given the progress we are making, we now expect our full year adjusted EPS to be at the high end of our previously provided guidance range of $4.50-$4.60. While there is still more work to be done, I am pleased with the momentum of our business, and want to thank the entire organization for their steadfast commitment to our customers. It is an exciting time to be at Sysco.”
Sysco CEO, on the earnings call
Forward Guidance & Outlook
Sysco raised its full-year fiscal 2026 adjusted EPS guidance to the high end of the previously provided range of $4.50-$4.60. Management expressed confidence in delivering at least 2.5% local case growth in the second half of fiscal year 2026. CFO Kenny Cheung noted that excluding an approximate $100 million ($0.16 per diluted share) headwind from lapping lower incentive compensation in fiscal year 2025, the outlook for adjusted EPS growth in FY26 is expected to deliver at the high end of approximately 5%-7%, in line with the company's long-term financial algorithm.
SYY YoY Financials
SYY Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.