What does Sysco do and what are its main business segments?

What is Sysco's gross profit margin?

What is the revenue and EPS growth rate for Sysco year over year?

What factors drove the changes in Sysco's revenue and profit?

Did Sysco beat or miss consensus estimates last quarter?

What were the key takeaways from Sysco's earnings call?

What is the market's earnings forecast for Sysco next quarter?

What were the key takeaways from Sysco’s earnings call?

- **Revenue Growth**: 3% Q2 revenue increase to $21 billion, with local case volume up 1.2% despite industry decline.
- **AI360 Tool**: 95% sales consultant adoption driving productivity, with Swap and Save suggestions set to boost revenue.
- **International Expansion**: 7.3% revenue growth in International segment, 4.5% local case growth, and 25.6% operating income expansion.
- **EPS Guidance**: Raised to $4.60, with 2.5%+ local case growth in Q3/Q4 and 5-7% EPS growth excluding headwinds.
- **Strategic Moves**: Ginsberg's acquisition, Sysco brand value-tier expansion, and AI/automation exploration.

**【CEO Summary Section】**
- **Revenue Growth**: Q2 revenue reached $21 billion, a 3% year-over-year increase, driven by positive case volume growth across all segments. Local case volume improved 1.2% (140 basis points sequential improvement) despite a 230 basis point decline in industry restaurant traffic.
- **AI360 Tool Impact**: The AI-driven sales tool, AI360, is boosting sales consultant productivity, with 95% of reps using it weekly. Swap and Save suggestions are expected to drive additional customer savings and revenue growth.
- **International Momentum**: International segment revenue grew 7.3% (9.9% excluding Mexico divestiture), with local case growth of 4.5% and adjusted operating income up 25.6%.
- **Acquisition Strategy**: The acquisition of Ginsberg's Foods in the Northeast is expected to add 50 basis points to local case growth in Q3 and Q4.
- **Guidance Update**: Full-year adjusted EPS raised to the high end of $4.50-$4.60 range, driven by 2.5%+ local case growth in Q3 and Q4.

**【CFO Financial Commentary】**
- **Financial Highlights**: Q2 gross profit grew 3.9% to $3.8 billion, with 15 basis points of margin expansion. Adjusted operating expenses were $3 billion (14.4% of sales), up 15 basis points year-over-year due to planned investments.
- **Cash Flow Strength**: Free cash flow year-to-date was $413 million, up 25%, reflecting strong earnings quality.
- **Balance Sheet**: Maintains investment-grade profile with $2.9 billion liquidity and 2.86x net debt leverage ratio.
- **EPS Guidance**: FY26 adjusted EPS expected at $4.60, including $0.16 headwind from lapped incentive compensation. Excluding this, EPS growth is projected at 5-7%.

**【Q&A Key Highlights】**
- **Local Case Growth Drivers**: Improved sales consultant retention, AI360 adoption, and Perks 2.0 loyalty program are driving 100 basis points of organic growth in Q3/Q4.
- **Sysco Brand Penetration**: Efforts to expand value-tier products (e.g., Sysco Reliance) aim to stabilize and improve Sysco brand penetration in the second half.
- **Automation & AI**: Exploring warehouse automation and AI tools to enhance productivity, with potential pilots in new facilities.
- **Weather Impact**: January started strong, but recent winter storms may impact Q3 results, with final impact assessed at quarter-end.

Sysco Corporation (SYY) Q2 2026 Earnings Call Transcript

- **Revenue and EPS Beat**: Q1 2026 revenue up 3.2%, adjusted EPS $1.08 (5.5% growth), driven by local business improvement and cost control.
- **Local Volume Momentum**: U.S. Broadline local volumes +0.4%, International local +5%. Q2 local volume growth expected to improve by at least 100 basis points.
- **AI and Perks Impact**: AI360 adoption by 90% of sales consultants, correlating with improved selling. Perks 2.0 enhancing retention and penetration of high-value customers.
- **FY26 Guidance**: $84-85 billion in sales, adjusted EPS $4.50-4.60, with 1%-3% growth excluding $0.16 per share headwind.
- **Specialty Growth**: Targeting $10 billion in specialty sales growth over the next period, leveraging unique product availability and service models.

**【CEO Summary Section】**
- Q1 2026 revenue grew 3.2% year-over-year, with adjusted EPS up 5.5% to $1.08, beating expectations. Local business volume improved sequentially, outpacing industry traffic by 2x in Q1.
- U.S. Broadline local volumes grew 0.4%, while International local volumes expanded 5%, driven by strategic initiatives like AI360 and Perks 2.0.
- Management expects at least 100 basis points of sequential improvement in U.S. Foodservice local volumes in Q2, with momentum continuing into the year.
- AI360 adoption is strong, with 90% of sales consultants using the tool daily, correlating with improved selling performance.

**【CFO Financial Commentary】**
- Gross profit rose 3.9% to $3.9 billion, with margin expanding 13 basis points to 18.5%, reflecting cost management and strategic sourcing.
- Operating expenses were $3 billion (14.2% of sales), up 14 basis points due to planned investments in growth areas.
- Adjusted operating income reached $898 million, up 13.1% in International and 39% in SYGMA.
- FY26 guidance: $84-85 billion in sales, adjusted EPS $4.50-4.60, with 1% to 3% growth excluding $0.16 per share headwind from lapped incentive compensation.

**【Q&A Highlights】**
- **Sales Force Productivity**: 130 basis points of local volume improvement vs. industry, driven by stable sales force retention and AI360 adoption. Q2 local volume growth expected to improve by at least 100 basis points.
- **Inflation Trends**: U.S. Broadline inflation at 2.6%, International at 4.5% (constant currency). Gross margin expansion of 13 basis points despite higher inflation.
- **Market Share**: 17% overall market share, with opportunities in specialty segments (e.g., produce, meat) and International markets. Specialty sales are expected to grow significantly over the next period.
- **Balance Sheet**: $3.5 billion liquidity, 2.9x net debt leverage, and $1 billion in dividends/dividends and buybacks planned for FY26.

Sysco Corporation (SYY) Q1 2026 Earnings Call Transcript

- **Q4 2025 Strong Finish**: Revenue $21.1B (+3.7% ex-Mexico), adjusted EPS $1.48 (+6.5%). International segment up 8.3% YoY, 7 straight quarters of double-digit profit growth.
- **Local Recovery Momentum**: USFS local case volume -1.5% Q4 (200bps improvement vs. Q3), June exit velocity strong. 2026 local growth to accelerate with stable sales retention and AI tools.
- **2026 Guidance**: Sales $84B-$85B (+3%-5%), adjusted EPS $4.50-$4.60 (+1%-3%). Includes $100M headwind from lapped incentive comp.
- **Key Initiatives**: Perks 2.0 (customer loyalty), AI-empowered CRM, price agility pilots. International expansion (Canada, UK) driving margin growth.

**【CEO Summary Section】**
- Q4 2025 revenue: $21.1 billion (+2.8% YoY, +3.7% ex-Mexico divestiture). Adjusted EPS: $1.48 (+6.5% YoY). International segment grew 8.3% YoY (excluding Mexico), with 7 consecutive quarters of double-digit operating income growth.
- Local U.S. Foodservice (USFS) case volume: -1.5% Q4, improved 200bps vs. Q3. June exit velocity strong, momentum carried into July.
- Strategic initiatives: Perks 2.0 (customer loyalty program), AI-empowered CRM tool, and price agility pilots. Sales force stability (retention rates) and new hire productivity key drivers for 2026 growth.
- 2026 outlook: Local case volume growth expected to accelerate, driven by stable sales retention, AI tools, and Perks 2.0. International segment to continue outperforming.

**【CFO Financial Commentary】**
- Q4 2025 gross profit: $4 billion (+3.9% YoY), gross margin 18.9% (up 19bps). Strategic sourcing contributed $100M+ savings.
- Operating expenses: $2.9B (13.7% of sales), up 28bps YoY due to investments in growth areas (fleet, sales headcount). Full-year corporate expenses down 6%.
- FY 2026 guidance: Sales $84B-$85B (+3%-5% YoY), adjusted EPS $4.50-$4.60 (+1%-3% YoY). Includes $100M headwind from lapping lower incentive comp in FY 2025.
- Cash flow: $2.5B operating cash flow, $1.8B free cash flow. Dividend payout to increase 6% YoY, $1B+ share buybacks planned.

**【Q&A Highlights】**
- **Local case growth momentum**: Q4 exit velocity improved, driven by stable sales retention and new hire productivity. Gap between new wins and customer losses doubled in Q4. 2026 local case growth to accelerate as 2025 customer losses lapse.
- **International strength**: Canada, UK, Latin America leading international profit growth. Sysco Your Way and strategic sourcing driving margin expansion (margins doubled since 2020).
- **Sales force strategy**: 4% headcount growth in 2026, focusing on high-potential segments. AI tools to turbocharge productivity of newer hires.
- **Industry trends**: Restaurant traffic stabilized at -1.1% Q4 vs. -3% Q3. Sysco expects to gain share through improved service (fill rates, on-time delivery) and strategic initiatives.

Sysco Corporation (SYY) Q4 2025 Earnings Conference Call Transcript

- **Q3 Results**: Revenue growth of 1.1% YoY, but local volume down 3.5% due to macro challenges. International segment profit up 17.4%.
- **Profit Improvement**: $100M initiatives begin contributing, with stronger impact expected in Q4.
- **New Initiatives**: Sysco To Go pilot stores launched to target value-seeking customers.
- **Guidance Update**: FY25 revenue growth revised to 3%, EPS growth at least 1% due to macro uncertainty.
- **Key Risks**: Elevated customer churn (up 100bps YoY), tariff-related supply chain disruptions.
- **Shareholder Returns**: $1.25B returned YTD via buybacks and dividends; 6% dividend increase signals long-term confidence.

**【CEO Summary Section】**
- Q3 revenue grew 1.1% YoY to $19.6 billion, driven by inflation pass-through and new business wins. Local volume declined 3.5% due to adverse weather and macro uncertainty, but March and April showed sequential improvement.
- International segment delivered double-digit profit growth (17.4%), with strong contributions from Canada, UK, and Ireland.
- $100M profit improvement initiatives (e.g., strategic sourcing, logistics efficiency) began contributing in Q3 and will accelerate in Q4.
- Launched Sysco To Go pilot stores in Houston to target value-seeking customers and reduce final-mile delivery costs.
- Tariff management task force focuses on mitigating supply chain disruptions and preserving margins.

**【CFO Financial Commentary】**
- Adjusted operating income: $773M (-3.3% YoY), driven by lower USFS volume and higher expenses.
- Adjusted EPS: $0.96 (flat YoY), reflecting disciplined cost management.
- Free cash flow: $954M YTD, supporting $1.25B in shareholder returns (shares repurchased and dividends).
- FY25 guidance updated to 3% revenue growth and at least 1% EPS growth, down from prior targets due to macro headwinds.
- Balance sheet remains strong with $4.4B liquidity and 2.8x net debt leverage.

**【Q&A Highlights】**
- **Salesforce Progress**: SC retention stabilized, new hires on track to meet targets. 4% YoY headcount growth expected, with productivity curve impact to accelerate in Q4.
- **Tariff Impact**: <10% of products sourced internationally; focused on alternative suppliers and menu engineering to offset cost increases.
- **Customer Churn**: Industry-wide churn up 100bps YoY; initiatives to improve service levels and loyalty programs will address retention in 2026.
- **Dividend Policy**: 6% dividend increase reflects confidence in long-term EPS growth, with plans to maintain commensurate hikes.


Sysco (SYY)-29 Apr 25-2025 Q3 Earnings call transcript

- **Revenue Growth**: Q2 $20.3B (+4.5% YoY), driven by 4.3% national volume and 3.6% International growth.
- **EPS Beat**: Adjusted EPS $0.93 (+4.5% YoY), supported by 14.2% operating margin.
- **Local Recovery**: Local case win rate up, NPS improving; H2 local growth expected.
- **International Strength**: 26.5% adj. op. income growth in Intl, 4.7% local case growth.
- **Cost Savings**: $100M+ annualized savings from sourcing, supply chain, and org. changes.
- **Share Buybacks**: $1.25B FY25 target; $1B dividends (15%+ growth).
- **Leverage**: 2.76x net debt, within 2.5-2.75x target.

**【CEO Summary Section】**
- Q2 total revenue reached $20.3 billion, up 4.5% YoY, driven by 4.3% national volume growth and 3.6% International segment growth.
- Adjusted EPS of $0.93, up 4.5% YoY, supported by disciplined margin management and strategic sourcing improvements.
- Local case volume declined 1.9% (excluding DON), but new customer win rate increased significantly due to new sales compensation program.
- International segment adjusted operating income rose 26.5%, with local case growth of 4.7% YoY.
- SYGMA sales grew 10.6%, contributing to top-line momentum.

**【CFO Financial Commentary】**
- GAAP net income: $420 million; Non-GAAP EPS: $0.93 (vs. $0.89 prior year).
- Gross profit up 3.9% YoY to $3.7 billion, with 2.1% product inflation managed effectively.
- Operating expenses: $2.9 billion (14.2% of sales), down 130bps YoY due to supply chain efficiency gains.
- $100 million+ annualized savings expected in H2 from strategic sourcing, supply chain, and organizational optimization.
- Share buyback program increased to $1.25 billion for FY25, with $1 billion in dividends.
- Net debt leverage: 2.76x, well within 2.5-2.75x target range.

**【Q&A Highlights】**
- **Sales Momentum**: Local case growth expected to improve in H2 due to 2024 sales hires becoming fully productive.
- **Inflation**: Center-of-plate inflation (dairy, protein) offset by commodity deflation; 2% COGS inflation guidance maintained.
- **International Growth**: Canada (+5% local case) and UK (+8%) leading international expansion; Sysco Brand penetration stabilizing.
- **Liquidity**: $3.1 billion total liquidity; FY25 free cash flow conversion target 50%.
- **Mexico JV Sale**: $500M annualized sales impact but margin accretive; no prior year recast planned.

**【Key Financial Targets】**
- FY25 Guidance: 4-5% net sales growth, 6-7% adjusted EPS growth.
- FY25 Share Buybacks: $1.25 billion (flexible based on M&A activity).
- FY25 Dividends: $1 billion (15%+ dividend growth rate).

Actual																0.45	-0.29	0.34	0.17	0.22	0.71	0.83	0.57	0.71	1.15	0.97	0.8	0.9	1.34	1.07	0.89	0.96	1.39	1.09	0.93	0.96	1.48	1.15	0.99
Forecast																0.5844	-0.2988	0.2464	0.3392	0.1962	0.6121	0.866	0.699	0.5533	1.115	0.9956	0.8422	0.9181	1.3293	1.0387	0.8764	0.9502	1.376	1.1266	0.9239	1.0227	1.3895	1.1217	0.9809
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	-23.00%	+2.95%	+37.99%	-49.88%	+12.13%	+15.99%	-4.16%	-18.45%	+28.32%	+3.14%	-2.57%	-5.01%	-1.97%	+0.80%	+3.01%	+1.55%	+1.03%	+1.02%	-3.25%	+0.66%	-6.13%	+6.51%	+2.52%	+0.93%

Actual	--	--	--	--	--	--	--	--	--	--	--	--	--	--	--	13.70B	8.87B	11.78B	11.56B	11.82B	16.14B	16.46B	16.32B	16.90B	19.00B	19.13B	18.59B	18.88B	19.73B	19.52B	19.30B	19.38B	20.58B	20.48B	20.15B	19.60B	21.14B	21.15B	20.76B
Forecast	--	--	--	--	--	--	--	--	--	--	--	--	--	--	--	13.94B	9.56B	11.72B	12.22B	12.28B	14.66B	15.85B	15.88B	15.99B	18.29B	18.70B	18.59B	18.56B	19.95B	19.73B	19.32B	19.74B	20.51B	20.47B	20.10B	20.04B	21.03B	21.08B	20.76B
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	-1.72%	-7.28%	+0.45%	-5.40%	-3.73%	+10.11%	+3.84%	+2.74%	+5.67%	+3.88%	+2.28%	+0.02%	+1.69%	-1.11%	-1.06%	-0.09%	-1.80%	+0.32%	+0.05%	+0.27%	-2.20%	+0.51%	+0.32%	0.00%

SYY

SYY fundamentals

SYY Q2 2026 Earnings

Earnings Call

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SYY

SYY fundamentals

SYY Q2 2026 Earnings

Earnings Call

SYY Earnings Call Summary for Q2/202610:00 AM on Jan 27, 2026

SYY Earnings Call Summary for Q1/202610:00 AM on Oct 28, 2025

SYY Earnings Call Summary for Q4/202510:00 AM on Jul 29, 2025

SYY Earnings Call Summary for Q3/202510:00 AM on Apr 29, 2025

SYY Earnings Call Summary for Q2/202510:00 AM on Jan 28, 2025

You can ask Aime