Sysco (NYSE:SYY) Issues Earnings Results, Misses Estimates By $0.01 EPS

Sysco (NYSE:SYY - Get Free Report) issued its quarterly earnings results on Tuesday. The company reported $0.94 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.95 by ($0.01), Briefing.com reports. Sysco had a net margin of 2.08% and a return on equity of 103.57%. The business had revenue of $20.52 billion during the quarter, compared to analyst estimates of $20.56 billion. During the same quarter in the previous year, the firm posted $0.96 earnings per share. The firm's quarterly revenue was up 4.7% on a year-over-year basis. Sysco updated its Q4 2026 guidance to 1.510-1.510 EPS.

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

• Sysco reported a strong Q3: $20.9 billion revenue (+4.7%), 3.3% U.S. local case volume growth (the strongest in three years), gross profit +6.5%, and adjusted EPS of $0.94 while reiterating full-year adjusted EPS at the high end of the $4.50–$4.60 range.
• Management announced the planned acquisition of Restaurant Depot (cash-and-carry leader) as a strategic growth driver — deal modeled to be accretive (mid–high single‑digit EPS year 1, low–mid‑teens year 2), add ~20% pro forma revenue, and deliver $250 million of annual net cost synergies (ramp by year 3) plus 5–6 net new stores per year.
• The transaction creates near‑term financial and market overhang — the $29.1B deal is funded with cash and ~91.5M shares, pushes pro forma leverage to ~4.5x at close, prompted suspension of ~$800M of buybacks, and management expects to deleverage to ~3.5x within 24 months, which may pressure the stock short term.
• International and non‑restaurant segments remain key growth engines — Sysco International delivered ~12% sales growth, local case growth of 3.8%, and its tenth consecutive quarter of double‑digit adjusted operating income growth, supporting margin expansion and cash generation.

Sysco Price Performance

NYSE:SYY opened at $74.08 on Friday. The company has a quick ratio of 0.75, a current ratio of 1.33 and a debt-to-equity ratio of 5.58. The firm has a market capitalization of $35.42 billion, a price-to-earnings ratio of 20.52, a P/E/G ratio of 3.58 and a beta of 0.66. The stock's 50 day moving average price is $79.95 and its two-hundred day moving average price is $78.41. Sysco has a 12-month low of $68.19 and a 12-month high of $91.85.

Sysco Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, July 24th. Shareholders of record on Thursday, July 2nd will be given a dividend of $0.55 per share. This represents a $2.20 dividend on an annualized basis and a yield of 3.0%. This is a boost from Sysco's previous quarterly dividend of $0.54. The ex-dividend date of this dividend is Thursday, July 2nd. Sysco's dividend payout ratio (DPR) is presently 59.83%.

Analyst Ratings Changes

Several brokerages recently commented on SYY. Weiss Ratings cut Sysco from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Monday, March 30th. Argus upgraded Sysco to a "hold" rating in a research note on Thursday, January 29th. Jefferies Financial Group increased their price objective on Sysco from $90.00 to $95.00 and gave the company a "buy" rating in a report on Wednesday, January 28th. BMO Capital Markets reissued an "outperform" rating on shares of Sysco in a research note on Wednesday, January 28th. Finally, Wall Street Zen downgraded shares of Sysco from a "buy" rating to a "hold" rating in a report on Saturday. Nine investment analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. According to MarketBeat, Sysco presently has an average rating of "Moderate Buy" and a consensus price target of $88.15.

Insiders Place Their Bets

In related news, Director Sheila Talton sold 2,801 shares of the company's stock in a transaction that occurred on Monday, February 2nd. The shares were sold at an average price of $82.99, for a total transaction of $232,454.99. Following the sale, the director owned 12,868 shares of the company's stock, valued at approximately $1,067,915.32. This represents a 17.88% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Company insiders own 0.56% of the company's stock.

Institutional Trading of Sysco

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

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.