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Sep 27
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.
Sysco
Sysco
Sysco Revenue by Segment
Sysco Revenue by Geographic Location
Revenue by Segment
U.S. Foodservice Revenue
CapyFin.comInternational FS Revenue
CapyFin.comSYGMA Revenue
CapyFin.comOther Revenue
CapyFin.comRevenue by Geographic Location
Total Revenue
CapyFin.com 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.
- Local case volume declined slightly.
Revenue & Expenses
Visualization of income flow from segment revenue to net income