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Sysco Lifts FY26 Profit Outlook to High End After Q2 Beat as U.S. Volumes Turn Positive

Management credited improving U.S. volumes, stronger international margins, disciplined cost controls.

The logo for Sysco Corporation, is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., July 6, 2018. REUTERS/Brendan McDermid
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Overview

  • The company now projects fiscal 2026 adjusted EPS of $4.50 to $4.60, targeting the high end of its 5% to 7% growth range.
  • Second-quarter adjusted EPS was $0.99 versus the $0.98 consensus, with net sales of $20.76 billion and a gross margin of 18.3%.
  • U.S. Foodservice local case volume rose 1.2% in the quarter, marking a third straight quarter of sequential improvement.
  • International sales increased 7.3% with gross margin up to 20.8%, aided by reduced shipping costs, renegotiated supplier contracts, and tighter warehouse and inventory spending.
  • CFO Kenny Cheung said the outlook increase absorbs about a $100 million, or roughly $0.16 per share, compensation-related headwind, and shares rose about 7% after the update.