Sysco Reports Earnings Drop, Completes Buyback, and Predicts Future Sales Growth

Wednesday, Jul 30, 2025 1:42 pm ET1min read
SYY--

Sysco has completed its share buyback program and reported fiscal year-end earnings with increased sales but a decline in net income and EPS. The company predicts future sales growth of 3% to 5% in fiscal 2026. Sysco's share price rose 9.78% during the quarter, aligning with broader market optimism. Despite this, the company's five-year total return, including dividends, was 64.84%, highlighting considerable growth and shareholder gains.

Sysco Corporation (NYSE: SYY) reported its financial results for the fourth quarter and fiscal year ended June 28, 2025. The company announced a 2.8% increase in sales to $21.1 billion for the fourth quarter, driven by improved financial outcomes and increased restaurant industry traffic. Gross profit rose 3.9% to $4.0 billion, while operating income decreased 9.0% to $889 million. Net earnings fell 13.2% to $531 million, but adjusted net earnings increased 3.3% to $716 million [1].

For the full fiscal year, sales increased 3.2% to $81.4 billion. Gross profit rose 2.5% to $15.0 billion, but operating income decreased 3.6% to $3.1 billion. Net earnings declined 6.5% to $1.8 billion, while adjusted net earnings increased 0.8% to $2.2 billion [1].

Sysco's share buyback program, totaling approximately $2.3 billion, was completed, returning capital to shareholders. The company also announced plans to reward shareholders with approximately $1 billion in dividends and $1 billion in share repurchases for FY26 [1].

Looking ahead, Sysco expects sales growth of approximately 3% to 5% for fiscal 2026, with adjusted EPS growth of approximately 1% to 3%. The company's share price rose 9.78% during the quarter, aligning with broader market optimism. Despite the decline in net income and EPS, Sysco's five-year total return, including dividends, was 64.84%, highlighting considerable growth and shareholder gains [1].

References:
[1] Sysco Corporation. (2025, July 29). Sysco Corporation Announces Fourth Quarter and Fiscal Year 2025 Results [Press Release]. Retrieved from https://investors.sysco.com/annual-reports-and-sec-filings/news-releases/2025/07-29-2025-130254119

Sysco Reports Earnings Drop, Completes Buyback, and Predicts Future Sales Growth

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