Skip to content
AnalystLens

Sysco 8-K Report, Financial Results (Oct 28, 2025)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed October 28, 2025
Period End
October 28, 2025
Security
SYY
In the record · 2016–202610-K1210-Q328-K147

SYY filed 12 annual reports (10-K), 32 quarterly reports (10-Q) and 147 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Mar ’18Mar ’18
  2. Material agreement8-K · May ’20May ’20
  3. Leadership change8-K · Dec ’22Dec ’22
  4. Leadership change8-K · Nov ’26Nov ’26

01—Abstract

Summary

Summary of the 8-K filed October 28, 2025. Cited figures are marked; the original filing is the authoritative source.

Sysco Corporation (NYSE: SYY) furnished an 8-K on October 28, 2025 under Item 2.02 (Results of Operations and Financial Condition), attaching a press release (Exhibit 99.1) announcing results for its first quarter of fiscal 2026, the 13-week period ended September 27, 2025.

Sales rose 3.2% to $21.1 billiona and gross profit rose 3.9% to $3.9 billion, with gross margin up 13 basis points to 18.5%. GAAP operating income declined 1.0% to $800 million and net earnings declined 2.9% to $476 million, with diluted EPS flat at $0.99. On an adjusted basis (non-GAAP), operating income rose 2.9% to $898 million, net earnings rose 2.0% to $551 million, and adjusted diluted EPS rose 5.5% to $1.15.

U.S. Foodservice Operations case volume increased 0.1%, and local case volume decreased 0.2%. Management reiterated its fiscal 2026 guidance of sales growth of 3%-5% and adjusted EPS growth of 1%-3%. The guidance includes an approximate $100 millionb ($0.16 per diluted share) headwind from lapping lower incentive compensation in fiscal 2025; excluding that impact, the company cites EPS growth of approximately 5% to 7%.

The CEO said momentum is building, citing a positive exit velocity in the U.S. Foodservice local business that improved 120 basis points sequentially. On the balance sheet, cash was $844 millionc at quarter end and total liquidity was $3.5 billion. Total debt was $13,353 million, net debt to adjusted EBITDA was approximately 2.9 times, and debt to net earnings was approximately 7.4 times.

Cash flow from operations was $86 milliond and free cash flow was negative $50 million for the quarter. Sysco paid $259 million in dividends during the period.

02—Key points

Key Highlights

  1. Sales increased 3.2% to $21.1 billion; U.S. Foodservice Operations sales rose 2.9% to $14.8 billion, and International Foodservice Operations sales rose 4.5% to $4.0 billion.
  2. GAAP operating income fell 1.0% to $800 million and GAAP net earnings fell 2.9% to $476 million; diluted EPS was flat at $0.99.
  3. Adjusted operating income rose 2.9% to $898 million, adjusted net earnings rose 2.0% to $551 million, and adjusted diluted EPS rose 5.5% to $1.15 (non-GAAP, excluding restructuring, transformation, severance and acquisition-related costs).
  4. Gross margin expanded 13 basis points to 18.5%, driven by effective management of product cost inflation (3.4% at the enterprise level) and strategic sourcing efficiencies.
  5. Operating expenses rose 5.3% to $3.1 billion, reflecting business capacity and sales headcount investments; adjusted operating expenses rose 4.3%.
  6. Fiscal 2026 guidance was reiterated: sales growth of 3%-5% and adjusted EPS growth of 1%-3%, including a roughly $0.16 per diluted share headwind from lapping lower incentive compensation.
  7. Free cash flow was negative $50 million for the quarter, with cash flow from operations of $86 million and capital expenditures net of proceeds of $136 million; cash was $844 million and total liquidity $3.5 billion.

03—Questions

Frequently Asked Questions

  1. How did Sysco perform in the first quarter of fiscal 2026?

    Sales grew 3.2% to $21.1 billion and gross profit grew 3.9% to $3.9 billion. GAAP operating income declined 1.0% to $800 million and GAAP net earnings declined 2.9% to $476 million, with diluted EPS flat at $0.99. On an adjusted basis, operating income rose 2.9% and adjusted diluted EPS rose 5.5% to $1.15.

  2. What is Sysco's guidance for fiscal 2026?

    Sysco reiterated guidance for sales growth of 3%-5% and adjusted EPS growth of 1%-3%. This includes an approximate $100 million ($0.16 per diluted share) headwind from lapping lower incentive compensation in fiscal 2025. Excluding that impact, the company says its outlook reflects EPS growth of approximately 5% to 7%.

  3. How did the U.S. Foodservice Operations segment perform?

    U.S. Foodservice Operations sales rose 2.9% to $14.8 billion, and total case volume rose 0.1% while local case volume decreased 0.2%. Gross margin decreased 3 basis points to 19.1%, and operating income decreased 3.1% to $880 million; adjusted operating income decreased 1.0% to $916 million.

  4. What were Sysco's cash flow and balance sheet highlights?

    Cash flow from operations was $86 million and free cash flow was negative $50 million for the quarter. Cash was $844 million and total liquidity was $3.5 billion. Total debt was $13,353 million, and net debt to adjusted EBITDA was approximately 2.9 times. Sysco returned $259 million to shareholders through dividends.

  5. Why do the adjusted and GAAP results differ?

    Adjusted results exclude certain items, which in the quarter primarily included $56 million of restructuring and transformational project costs and $42 million of acquisition-related costs, such as intangible amortization and due diligence costs. The company describes these non-GAAP measures as providing perspective on underlying business trends.

04—Continue

← View all 8-K filings