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Sep 27, 2025
Sysco Q1 2026 Earnings Report
Sysco reported its Q1 2026 results, showing stable earnings per share and modest sales growth, while net income slightly declined year-over-year.
Key Takeaways
Sysco delivered $21.1 billion in revenue with flat EPS of $0.99 and a net income of $476 million in Q1 2026. Adjusted EPS rose to $1.15, driven by strong local business performance and margin management.
Revenue grew 3.2% to $21.1 billion, supported by improvements in U.S. and international segments.
Net income declined 2.9% to $476 million, while adjusted net income rose to $551 million.
EPS remained flat at $0.99; adjusted EPS increased 5.5% to $1.15.
Free cash flow was negative $50 million due to investments in operations and capital expenditures.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Sysco reiterated its full-year FY26 guidance, expecting sales growth of 3%-5% and adjusted EPS growth of 1%-3%, despite headwinds from incentive comp comparisons.
Positive Outlook
- Reiterated FY26 guidance for sales and EPS growth.
- Strong start to FY26 with Q1 adjusted EPS exceeding expectations.
- Improving local business and sequential volume gains.
- Gross margin expanded for another quarter.
- Solid expense control and supply chain improvement.
Challenges Ahead
- Headwind of ~$100 million ($0.16 per share) from incentive compensation lapping.
- Free cash flow was negative in Q1.
- Net income declined 2.9% year-over-year.
- Total case volume showed minimal growth.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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