01—Abstract
Summary
Summary of the 10-K filed August 22, 2025. Cited figures are marked; the original filing is the authoritative source.
Sysco Corporation reported fiscal 2025 (52 weeks ended June 28, 2025) sales of $81.37 billiona, up 3.2% from $78.84 billion in fiscal 2024, driven by inflation and volume growth partly from acquisitions.
Gross profit rose 2.5% to $14.97 billionb, but operating income fell 3.6% to $3.09 billion, primarily due to a noncash $92 million goodwill impairment at its Guest Worldwide business. Net earnings decreased 6.5% to $1.83 billion and diluted earnings per share fell 4.1% to $3.73. On an adjusted basis, excluding Certain Items, adjusted operating income rose 1.2% to $3.52 billion and adjusted diluted earnings per share increased to $4.46 from $4.31.
Cash flow and balance sheet items were weaker year over year. Net cash provided by operating activities was $2.51 billionc versus $2.99 billion, and free cash flow, a non-GAAP measure, was $1.82 billion versus $2.24 billion. Total debt was $13.3 billion at June 28, 2025, with $1.75 billion maturing within the next twelve months.
The company repurchased 16,988,703 shares for $1.3 billiond during the year, paid $1.0 billion in dividends, and had about $1.5 billion remaining under its share repurchase authorization. Management expects fiscal 2026 net sales growth of 3% to 5%, inflation of approximately 2%, and capital expenditures of approximately $700 million.
The filing notes risks including low margins in the foodservice distribution industry, inflation and deflation effects on product costs, labor shortages, fuel costs, competition, cybersecurity incidents (including a March 2023 event), and multiemployer pension withdrawal liability that could be as much as $150 million. Sysco also reported that its U.S. Foodservice Operations generated 88.8% of total segment operating income in fiscal 2025.
02—Key points
Key Highlights
- Sales rose 3.2% to $81.37 billion, driven by inflation and volume growth partly from recent acquisitions.
- Operating income decreased 3.6% to $3.09 billion, primarily due to a noncash $92 million goodwill impairment at Guest Worldwide.
- Adjusted operating income, excluding Certain Items, increased 1.2% to $3.52 billion; adjusted diluted EPS rose to $4.46 from $4.31.
- Diluted EPS declined 4.1% to $3.73, and net earnings fell 6.5% to $1.83 billion.
- Free cash flow (non-GAAP) decreased 18.7% to $1.82 billion, as operating cash flow fell to $2.51 billion from $2.99 billion.
- Sysco repurchased 16,988,703 shares for $1.3 billion in fiscal 2025 and paid $1.0 billion in dividends, with $1.5 billion of repurchase authorization remaining.
- Management expects fiscal 2026 net sales growth of 3% to 5%, inflation of approximately 2%, and an effective tax rate of approximately 23.5% to 24.0%.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Sysco kept $0.02.
- Revenue$81.37B100.0%
- Cost of revenue−$66.40B81.6%
- Gross profit$14.97B18.4%
- Operating costs−$11.88B14.6%
- Operating income$3.09B3.8%
- Interest, other & tax−$1.26B1.5%
- Net income$1.83B2.2%
Where FY2025 revenue went
$81.37B- Cost of revenue: $66.40B, 82% of revenue
- Operating costs: $11.88B, 15% of revenue
- Net income: $1.83B, 2.2% of revenue
- Interest, other & tax: $1.26B, 1.5% of revenue
Kept 2.2% as net incomeNet income $1.83B · 2.2%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed August 22, 2025Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $81.37B$78.84B | +3.2% |
| Cost of Revenue | $66.40B$64.24B | +3.4% |
| Gross Profit | $14.97B$14.61B | +2.5% |
| Operating Expenses | $11.88B$11.41B | +4.2% |
| Operating Income | $3.09B$3.20B | −3.6% |
| Net Income | $1.83B$1.96B | −6.5% |
| EPS (Basic) | $3.74$3.90 | −4.1% |
| EPS (Diluted) | $3.73$3.89 | −4.1% |
| Shares Outstanding (Basic) | 488.14M501.24M | −2.6% |
| Shares Outstanding (Diluted) | 489.83M503.10M | −2.6% |
05—Questions
Frequently Asked Questions
How did Sysco perform financially in fiscal 2025?
Sysco's fiscal 2025 sales increased 3.2% to $81.37 billion. Operating income fell 3.6% to $3.09 billion, largely due to a $92 million noncash goodwill impairment at Guest Worldwide. Net earnings decreased 6.5% to $1.83 billion, and diluted EPS was $3.73. Adjusted diluted EPS, excluding Certain Items, was $4.46, up from $4.31.
What caused the goodwill impairment charge?
In its annual fiscal 2025 assessment, Sysco concluded that its Guest Worldwide reporting unit had a fair value less than book value due to recent financial performance and downward revisions to its long-range financial outlook. The company recorded a noncash goodwill impairment charge of $92 million in the fourth quarter and does not anticipate additional goodwill impairment charges in fiscal 2026.
What is Sysco's debt and liquidity position?
As of June 28, 2025, Sysco had total debt of approximately $13.3 billion, primarily senior notes, and $1.75 billion of debt maturing within the next twelve months. The company had about $3.8 billion in cash and available liquidity at year-end and about $2.7 billion as of August 5, 2025. Its long-term revolving credit facility had no borrowings outstanding, and credit ratings were Baa1 (Moody's), BBB (S&P), and BBB (Fitch), all with stable outlooks.
What are Sysco's expectations for fiscal 2026?
Sysco expects net sales growth of 3% to 5% across the enterprise, inflation of approximately 2%, interest expense of approximately $700 million, capital expenditures of approximately $700 million, and an effective tax rate of approximately 23.5% to 24.0%. It also expects incentive compensation to increase by approximately $100 million compared with fiscal 2025, and about $1.0 billion in share repurchases.
What are the main risks highlighted in the filing?
The filing highlights low industry margins and exposure to product cost inflation and deflation, labor shortages and union contract renegotiations, fuel cost volatility, intense competition and group purchasing organization pressure, cybersecurity incidents, and changing consumer eating habits. It also cites potential multiemployer pension withdrawal liability that could be as much as $150 million and a dispute with the IRS over foreign tax credits, for which a previously recorded $131 million benefit could be reversed.
06—Continue