Sysco (NYSE:SYY) Announces Earnings Results, Beats Estimates By $0.02 EPS

Key Points

• Sysco beat quarterly expectations: EPS was $1.53 versus the $1.51 consensus, while revenue increased 4.7% year over year to $22.12 billion, exceeding estimates.
• Fiscal 2027 guidance was raised: The company forecast adjusted EPS of $5.025–$5.117, above the $4.96 consensus, alongside projected sales growth of 6%–7% and approximately $100 million in AI-related cost savings.
• Shares fell 2.3% despite the beats: Investors remain concerned about declining margins, high leverage and risks tied to the planned Jetro Restaurant Depot acquisition.

Sysco (NYSE:SYY - Get Free Report) issued its quarterly earnings data on Tuesday. The company reported $1.53 earnings per share (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 firm had revenue of $22.12 billion during the quarter, compared to analysts' expectations of $21.95 billion. During the same quarter in the previous year, the company earned $1.48 earnings per share. The business'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.

Sysco Stock Down 2.3%

NYSE SYY traded down $1.97 on Tuesday, reaching $83.01. The company had a trading volume of 2,843,047 shares, compared to its average volume of 4,173,603. The company's fifty day moving average is $80.63 and its 200-day moving average is $80.24. The firm has a market capitalization of $39.74 billion, a price-to-earnings ratio of 23.09, a price-to-earnings-growth ratio of 3.36 and a beta of 0.64. 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 1-year low of $68.19 and a 1-year high of $91.85.

More Sysco News

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

In other news, Director John M. Hinshaw purchased 13,304 shares of the company's stock in a transaction on Tuesday, May 26th. The shares were purchased at an average price of $75.17 per share, with a total value of $1,000,061.68. Following the purchase, the director directly owned 40,200 shares of the company's stock, valued at $3,021,834. This trade represents a 49.46% increase in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. 0.56% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the company. Corient Private Wealth LLC grew its stake in shares of Sysco by 1.7% during the 4th quarter. Corient Private Wealth LLC now owns 193,688 shares of the company's stock worth $13,847,000 after acquiring an additional 3,170 shares in the last quarter. Alberta Investment Management Corp acquired a new position in Sysco during the fourth quarter worth $5,151,000. Mercer Global Advisors Inc. ADV boosted its holdings in Sysco by 93.3% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 108,393 shares of the company's stock worth $7,725,000 after purchasing an additional 52,319 shares during the last quarter. Summit Global Investments bought a new position in Sysco in the fourth quarter valued at $1,552,000. Finally, Beacon Pointe Advisors LLC increased its stake in Sysco by 9.5% in the 4th quarter. Beacon Pointe Advisors LLC now owns 17,844 shares of the company's stock valued at $1,315,000 after buying an additional 1,544 shares during the last quarter. 83.41% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on SYY. Melius Research cut shares of Sysco from a "hold" rating to a "sell" rating in a research report on Tuesday, July 7th. Deutsche Bank Aktiengesellschaft cut shares of Sysco from a "buy" rating to a "hold" rating and set a $84.00 price objective for the company. in a research report on Tuesday, April 28th. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Sysco in a research note on Friday, June 26th. Sanford C. Bernstein decreased their target price on Sysco from $90.00 to $85.00 and set a "market perform" rating for the company in a research note on Wednesday, April 29th. Finally, Barclays lowered their price target on Sysco from $92.00 to $86.00 and set an "overweight" rating for the company in a report on Wednesday, April 29th. Eight research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $88.00.

About Sysco

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.

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