Sysco Exceeds Q4 Earnings Estimates with 6.5% EPS Beat, Revenue Up 2.8%

Sysco reported Q4 FY25 earnings per share of $1.48, beating estimates by 6.5%, and revenue of $21.1 billion, up 2.8% YoY. Local U.S. case volume remained negative, but management guided for moderate sales and earnings growth in fiscal 2026.

Sysco Corporation (NYSE: SYY) announced its financial results for the fourth quarter of fiscal year 2025 (Q4 FY25) and provided guidance for the upcoming fiscal year. The company reported earnings per share (EPS) of $1.48, exceeding estimates by 6.5%, and revenue of $21.1 billion, up 2.8% year-over-year (YoY) [1].

Key highlights of the Q4 FY25 results include:
- Sales: Total sales increased by 2.8% to $21.1 billion, with U.S. Foodservice sales growing 2.4% to $14.8 billion and International Foodservice sales rising 3.6% to $3.9 billion.
- Gross Profit: Gross profit increased by 3.9% to $4.0 billion, driven by effective management of product cost inflation.
- Operating Income: Operating income decreased by 9.0% to $889 million, primarily due to a $92 million non-cash goodwill impairment charge related to the Guest Worldwide business.
- Adjusted Operating Income: Adjusted operating income increased by 1.1% to $1.1 billion, excluding the goodwill impairment charge.
- Net Earnings: Net earnings decreased by 13.2% to $531 million, while adjusted net earnings increased by 3.3% to $716 million.
- EBITDA: EBITDA decreased by 6.5% to $1.1 billion, but adjusted EBITDA increased by 1.8% to $1.3 billion.
- EPS: EPS decreased by 10.6% to $1.10, but adjusted EPS increased by 6.5% to $1.48.

For fiscal year 2025 (FY25), Sysco reported:
- Sales: Total sales increased by 3.2% to $81.4 billion.
- Gross Profit: Gross profit increased by 2.5% to $15.0 billion.
- Operating Income: Operating income decreased by 3.6% to $3.1 billion.
- Net Earnings: Net earnings decreased by 6.5% to $1.8 billion.
- EBITDA: EBITDA decreased by 1.2% to $4.0 billion.
- EPS: EPS decreased by 4.1% to $3.73, but adjusted EPS increased by 3.5% to $4.46.

Sysco guided for moderate sales and earnings growth in fiscal 2026 (FY26), expecting sales growth of approximately 3% to 5% and adjusted EPS growth of approximately 1% to 3%. The company also plans to reward shareholders with approximately $1 billion in dividends and $1 billion in share repurchases for FY26 [1].

References:
[1] https://investors.sysco.com/annual-reports-and-sec-filings/news-releases/2025/07-29-2025-130254119