Sysco (NYSE:SYY) Releases Earnings Results, Beats Expectations By $0.02 EPS

Sysco (NYSE:SYY) released its earnings results on Tuesday. The company reported $1.53 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.51 by $0.02, FiscalAI reports. 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 analyst estimates of $21.95 billion. During the same quarter in the prior year, the company posted $1.48 earnings per share. Sysco’s revenue was up 4.7% on a year-over-year basis. Sysco updated its FY 2027 guidance to 5.025-5.117 EPS and its Q1 2027 guidance to 1.180-1.200 EPS.

Sysco Stock Performance

NYSE:SYY traded down $1.97 on Tuesday, hitting $83.01. The company’s stock had a trading volume of 2,843,047 shares, compared to its average volume of 4,173,603. Sysco has a one year low of $68.19 and a one year high of $91.85. The firm has a market capitalization of $39.74 billion, a P/E ratio of 23.09, a price-to-earnings-growth ratio of 3.36 and a beta of 0.64. The stock has a fifty day moving average of $80.63 and a two-hundred day moving average of $80.24. The company has a current ratio of 1.33, a quick ratio of 0.80 and a debt-to-equity ratio of 5.58.

Analyst Ratings Changes

SYY has been the subject of a number of analyst reports. Citigroup restated a “neutral” rating on shares of Sysco in a research note on Wednesday, July 22nd. Piper Sandler dropped their price objective on Sysco from $83.00 to $77.00 and set a “neutral” rating on the stock in a research note on Tuesday, April 7th. Morgan Stanley increased their price objective on Sysco from $84.00 to $88.00 and gave the company an “equal weight” rating in a report on Thursday, July 16th. Deutsche Bank Aktiengesellschaft cut shares of Sysco from a “buy” rating to a “hold” rating and set a $84.00 target price for the company. in a research note on Tuesday, April 28th. Finally, Sanford C. Bernstein dropped their price target on shares of Sysco from $90.00 to $85.00 and set a “market perform” rating on the stock in a research report on Wednesday, April 29th. Eight investment analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, Sysco has a consensus rating of “Hold” and a consensus price target of $88.00.

Sysco News Summary

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.

Insider Activity at Sysco

In other Sysco news, Director John M. Hinshaw bought 13,304 shares of Sysco stock in a transaction dated Tuesday, May 26th. The stock was bought at an average cost of $75.17 per share, for a total transaction of $1,000,061.68. Following the purchase, the director owned 40,200 shares of the company’s stock, valued at $3,021,834. The trade was a 49.46% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 0.56% of the company’s stock.

Institutional Investors Weigh In On Sysco

Several hedge funds have recently added to or reduced their stakes in SYY. Wellington Management Group LLP raised its holdings in Sysco by 3,977.1% in the 3rd quarter. Wellington Management Group LLP now owns 4,711,376 shares of the company’s stock valued at $387,935,000 after acquiring an additional 4,595,819 shares in the last quarter. Marshall Wace LLP lifted its position in shares of Sysco by 102.6% during the 3rd quarter. Marshall Wace LLP now owns 2,359,471 shares of the company’s stock valued at $194,279,000 after acquiring an additional 1,194,815 shares during the period. Suvretta Capital Management LLC acquired a new stake in shares of Sysco during the 4th quarter worth $79,864,000. Scopus Asset Management L.P. bought a new position in shares of Sysco in the third quarter worth $87,075,000. Finally, AQR Capital Management LLC raised its stake in Sysco by 183.2% in the fourth quarter. AQR Capital Management LLC now owns 1,193,651 shares of the company’s stock valued at $87,960,000 after purchasing an additional 772,099 shares in the last quarter. Institutional investors and hedge funds own 83.41% of the company’s stock.

About Sysco

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.