Sysco (NYSE:SYY) Issues Quarterly Earnings Results

Sysco (NYSE:SYY) posted its earnings results on Tuesday. The company reported $1.53 EPS for the quarter, beating analysts’ consensus estimates of $1.51 by $0.02, FiscalAI reports. Sysco had a net margin of 2.08% and a return on equity of 103.57%. The business had revenue of $22.12 billion for the quarter, compared to the consensus estimate of $21.95 billion. During the same quarter last year, the firm posted $1.48 EPS. The company’s revenue for the quarter was up 4.7% on a year-over-year basis. Sysco updated its FY 2027 guidance to 5.025-5.117 EPS and its Q1 2027 guidance to 1.180-1.200 EPS.

Here are the key takeaways from Sysco’s conference call:

• Sysco exceeded fourth-quarter expectations, reporting 4.7% revenue growth to more than $22 billion and adjusted EPS of $1.53; full-year adjusted EPS reached $4.61 despite pausing share repurchases.
• U.S. local case volumes accelerated to 2.6% in Q4, while improved sales-team retention, AI-enabled selling tools, customer penetration, and new-customer wins supported stronger momentum heading into fiscal 2027.
• Management guided to fiscal 2027 revenue growth of 6%-7% and adjusted EPS growth of 9%-11%, supported by approximately 2.5% U.S. local case growth, positive Sysco Brand mix, continued international profit growth, and a 53rd week.
• Sysco expects approximately $100 million of in-year savings from AI-driven efficiency initiatives in fiscal 2027, with a roughly $160 million run-rate benefit and additional opportunities in routing, inventory forecasting, procurement, contract management, and back-office technology.
• The Restaurant Depot acquisition remains subject to FTC review after the agency issued a second request, while the transaction will temporarily suspend buybacks and increase leverage; management said it remains confident the deal will close by the third quarter of fiscal 2027 and that rapid deleveraging will follow.

Sysco Stock Down 2.3%

SYY traded down $1.96 during trading on Tuesday, hitting $83.02. The stock had a trading volume of 3,337,323 shares, compared to its average volume of 4,181,706. The stock has a 50 day simple moving average of $80.63 and a two-hundred day simple moving average of $80.24. The company has a debt-to-equity ratio of 5.58, a quick ratio of 0.80 and a current ratio of 1.33. Sysco has a twelve month low of $68.19 and a twelve month high of $91.85. The company has a market capitalization of $39.74 billion, a PE ratio of 23.04, a PEG ratio of 3.36 and a beta of 0.64.

Analyst Upgrades and Downgrades

SYY has been the topic of several research reports. Melius Research lowered shares of Sysco from a “hold” rating to a “sell” rating in a report on Tuesday, July 7th. Sanford C. Bernstein dropped their target price on Sysco from $90.00 to $85.00 and set a “market perform” rating on the stock in a research report on Wednesday, April 29th. Weiss Ratings reiterated a “hold (c+)” rating on shares of Sysco in a report on Friday, June 26th. Piper Sandler reduced their price target on Sysco from $83.00 to $77.00 and set a “neutral” rating for the company in a research report on Tuesday, April 7th. Finally, Barclays decreased their price objective on Sysco from $92.00 to $86.00 and set an “overweight” rating for the company in a research note on Wednesday, April 29th. Eight research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $88.00.

Key Stories Impacting Sysco

Here are the key news stories impacting Sysco this week:

• Positive Sentiment: Fourth-quarter results exceeded expectations. Adjusted EPS was $1.53 versus the $1.51 consensus, while revenue rose 4.7% year over year to $22.12 billion, ahead of the $21.95 billion estimate. Sysco Surpasses Q4 Earnings and Revenue Estimates
• Positive Sentiment: Demand and operating performance improved. U.S. foodservice case volume increased 2.5%, local volume rose 2.6%, and international sales advanced 6.7%. Quarterly operating income climbed 10.6% to $983 million, supported by supply-chain productivity and stronger restaurant orders. Food Distributor Sysco Beats Quarterly Sales Estimates
• Positive Sentiment: Fiscal 2027 guidance was above consensus. Sysco projects 6%-7% sales growth, $89.6 billion-$90.5 billion in revenue and adjusted EPS growth of 9%-11%; its EPS range of $5.025-$5.117 exceeds the $4.96 consensus. The outlook includes approximately $100 million in cost savings from AI-enabled productivity initiatives. Sysco Reports Fiscal Fourth Quarter and Full Year Results
• Neutral Sentiment: Sysco generated $2.1 billion in fiscal 2026 free cash flow and returned approximately $1.2 billion to shareholders through dividends and repurchases. An insider purchase of roughly $1 million may provide modest investor support, although institutional ownership changes were mixed.
• Negative Sentiment: Profitability remains a concern. Fourth-quarter gross margin declined 17 basis points to 18.7%, while fiscal 2026 GAAP net earnings fell 3.9% and diluted EPS declined 1.9%. Full-year operating income grew only 0.2% on a GAAP basis.
• Negative Sentiment: Leverage and execution risks remain. Net debt was approximately 2.7 times adjusted EBITDA, and the planned Jetro Restaurant Depot acquisition carries financing, integration and synergy risks. These concerns may explain why the stock has decreased even after the earnings and guidance beats.

Insider Activity at Sysco

In other Sysco news, Director John M. Hinshaw acquired 13,304 shares of the firm’s stock in a transaction dated Tuesday, May 26th. The stock was purchased at an average price of $75.17 per share, for a total transaction of $1,000,061.68. Following the acquisition, the director owned 40,200 shares in the company, valued at approximately $3,021,834. This trade represents a 49.46% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Corporate insiders own 0.56% of the company’s stock.

Institutional Investors Weigh In On Sysco

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in SYY. Schnieders Capital Management LLC. lifted its position in Sysco by 24.1% during the second quarter. Schnieders Capital Management LLC. now owns 10,310 shares of the company’s stock valued at $781,000 after purchasing an additional 2,000 shares during the period. DV Equities LLC acquired a new stake in Sysco during the 4th quarter worth about $49,000. Wealth Watch Advisors INC raised its stake in shares of Sysco by 22.1% during the 4th quarter. Wealth Watch Advisors INC now owns 1,054 shares of the company’s stock valued at $78,000 after buying an additional 191 shares during the last quarter. Quarry LP raised its stake in shares of Sysco by 2,502.1% during the 4th quarter. Quarry LP now owns 1,223 shares of the company’s stock valued at $90,000 after buying an additional 1,176 shares during the last quarter. Finally, Rossby Financial LCC lifted its holdings in shares of Sysco by 17.8% in the 4th quarter. Rossby Financial LCC now owns 1,119 shares of the company’s stock valued at $82,000 after buying an additional 169 shares during the period. 83.41% of the stock is currently owned by hedge funds and other institutional investors.

Sysco Company Profile

Sysco Corporation (NYSE: SYY) is a global foodservice distribution company that supplies a broad range of food and related products to restaurants, healthcare and educational facilities, lodging establishments, and other foodservice customers. Its core business is the procurement, warehousing and delivery of fresh, frozen and dry food products, complemented by non-food items such as paper goods, kitchen equipment, cleaning supplies and tabletop products. Sysco serves customers through an extensive network of distribution centers and dedicated delivery fleets, positioning itself as a one-stop supplier for operators of all sizes.

Founded in 1969 and headquartered in Houston, Texas, Sysco has grown through both organic expansion and acquisitions.