Sysco (NYSE:SYY) Updates Q1 2027 Earnings Guidance

Key Points

• Sysco exceeded quarterly expectations, reporting adjusted EPS of $1.53 versus the $1.51 consensus and revenue of $22.12 billion, up 4.7% year over year.
• The company issued Q1 2027 EPS guidance of $1.18-$1.20 and FY 2027 EPS guidance of $5.025-$5.117, with the full-year outlook above the $4.96 analyst consensus.
• Despite the earnings and guidance beats, Sysco shares fell 2.1% to $83.16. Analysts maintain a consensus “Hold” rating with an average price target of $88, while margin pressure and elevated leverage remain concerns.

Sysco (NYSE:SYY - Get Free Report) issued an update on its first quarter 2027 earnings guidance on Tuesday morning. The company provided EPS guidance of 1.180-1.200 for the period, compared to the consensus estimate of 1.190. The company issued revenue guidance of -. Sysco also updated its FY 2027 guidance to 5.025-5.117 EPS.

Sysco Trading Down 2.1%

Shares of Sysco stock traded down $1.82 during midday trading on Tuesday, reaching $83.16. The company had a trading volume of 3,253,119 shares, compared to its average volume of 4,178,449. Sysco has a fifty-two week low of $68.19 and a fifty-two week high of $91.85. The company has a debt-to-equity ratio of 5.58, a current ratio of 1.33 and a quick ratio of 0.80. The stock has a fifty day moving average price of $80.63 and a 200 day moving average price of $80.24. The firm has a market cap of $39.81 billion, a PE ratio of 23.03, a P/E/G ratio of 3.36 and a beta of 0.64.

Sysco (NYSE:SYY - Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The company reported $1.53 earnings per share for the quarter, topping the consensus estimate of $1.51 by $0.02. Sysco had a return on equity of 103.57% and a net margin of 2.08%.The business had revenue of $22.12 billion for the quarter, compared to analysts' expectations of $21.95 billion. During the same quarter in the previous year, the firm earned $1.48 earnings per share. The business's revenue was up 4.7% on a year-over-year basis. Sysco has set its FY 2027 guidance at 5.025-5.117 EPS and its Q1 2027 guidance at 1.180-1.200 EPS. On average, equities analysts anticipate that Sysco will post 4.59 earnings per share for the current year.

Analysts Set New Price Targets

Several research firms recently issued reports on SYY. Sanford C. Bernstein lowered their price objective 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. Melius Research lowered shares of Sysco from a "hold" rating to a "sell" rating in a research report on Tuesday, July 7th. Morgan Stanley increased their price objective on shares of Sysco from $84.00 to $88.00 and gave the company an "equal weight" rating in a report on Thursday, July 16th. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Sysco in a research note on Friday, June 26th. Finally, Citigroup reiterated a "neutral" rating on shares of Sysco in a research note on Wednesday, July 22nd. Eight analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $88.00.

Insider Buying and Selling

In related news, Director John M. Hinshaw purchased 13,304 shares of Sysco stock in a transaction that occurred on Tuesday, May 26th. The stock was purchased at an average cost of $75.17 per share, with a total value of $1,000,061.68. Following the completion of the transaction, the director directly owned 40,200 shares in the company, valued at approximately $3,021,834. The trade was a 49.46% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 0.56% of the stock is owned by company insiders.

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.

Hedge Funds Weigh In On Sysco

Several large investors have recently added to or reduced their stakes in the business. Wellington Management Group LLP grew its stake in Sysco by 3,977.1% during the third quarter. Wellington Management Group LLP now owns 4,711,376 shares of the company's stock worth $387,935,000 after buying an additional 4,595,819 shares during the last quarter. Marshall Wace LLP boosted its stake in Sysco by 102.6% during the 3rd quarter. Marshall Wace LLP now owns 2,359,471 shares of the company's stock worth $194,279,000 after acquiring an additional 1,194,815 shares during the last quarter. Suvretta Capital Management LLC bought a new stake in Sysco during the 4th quarter worth approximately $79,864,000. Scopus Asset Management L.P. acquired a new stake in Sysco in the 3rd quarter valued at approximately $87,075,000. Finally, AQR Capital Management LLC lifted its position in Sysco by 183.2% during the 4th quarter. AQR Capital Management LLC now owns 1,193,651 shares of the company's stock worth $87,960,000 after buying an additional 772,099 shares in the last quarter. 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.

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