Sysco (NYSE: SYY) Reports Second Quarter Fiscal 2026 Results

Sysco Corporation, the leading U.S. foodservice distribution company, released its second quarter fiscal 2026 earnings results on January 27, 2026, reporting solid performance across multiple key metrics that reflect continued growth in revenue, expanding profit margins, and improved business volumes. These results, which beat some analyst expectations, show ongoing momentum in Sysco’s global operations and provide insight into how the company is navigating inflationary costs and challenging market conditions.

🧾 Overall Financial Performance for Q2

During the quarter ended December 27, 2025, Sysco reported net sales of approximately $20.8 billion, representing a 3.0% year-over-year increase. This growth was fueled by positive volume trends in the company’s U.S. and international foodservice operations.

Gross profit increased ~3.9% to about $3.8 billion, while the company also reported a modest improvement in gross margin, up about 15 basis points to ~18.3%. These results reflect effective management of product cost inflation — which remained elevated — and strategic sourcing actions.

Key Q2 Highlights

• Total revenue: $20.8B (+3.0% YoY)
• Adjusted earnings per share: $0.99 vs the Zacks consensus of $0.98 — beating estimates and increasing ~6.5% year-over-year
• Net earnings: $389M, slightly down versus prior year
• Gross profit: ~3.9% increase to ~$3.8B
• Adjusted operating income: ~$807M (+3.1%)
• EBITDA: ~$923M with adjusted EBITDA ~$1.0B (+3.3%)

📈 Segment Results: U.S. and International Performance

Sysco’s performance across operating segments demonstrated both steady domestic growth and strong gains overseas.

U.S. Foodservice Operations

Within its largest segment, U.S. Foodservice, Sysco achieved modest sales growth driven by improved volume trends despite slower overall restaurant traffic. Total case volume increased ~0.8%, while local case volumes — a key internal metric for customer demand — advanced ~1.2%.

International Foodservice Operations

Sysco’s international business continued to expand, reporting double-digit growth in sales and gross profit. The segment benefited from currency tailwinds and strong demand in key overseas markets, contributing meaningfully to overall corporate results.

📊 Earnings per Share and Analyst Reactions

Sysco’s adjusted earnings per share (EPS) of $0.99 slightly surpassed the Zacks Consensus Estimate of $0.98 and was up about 6.5% from the same period a year earlier. This beat helped drive positive market reaction following the release.

While the company’s GAAP diluted EPS of approximately $0.81 was slightly below last year’s result, the improvement in adjusted EPS underscores Sysco’s ability to manage costs and deliver profitability in a shifting economic environment.

📍 Management Commentary and Outlook

In remarks accompanying the release, Sysco management highlighted that this quarter marked the third consecutive quarter of improving local case growth, an internal measure of demand at the local level. The company now expects that local case volume will accelerate further in the second half of fiscal 2026.

Management reiterated its guidance for fiscal 2026 adjusted EPS in the range of $4.50 to $4.60, anticipating growth toward the higher end of that range based on current momentum. Analysts view this guidance as a signal of confidence in Sysco’s strategic initiatives and ongoing operational improvements.

📌 Strategic Highlights and Market Position

Sysco remains the largest foodservice distributor in the U.S., commanding a substantial share of the large and fragmented food distribution market. The company’s broad product portfolio, extensive logistics network, and long-standing customer relationships continue to be competitive advantages in driving long-term growth and resilience.

📉 Challenges and Costs

Inflationary pressures, especially in meat and seafood product categories, continued to impact Sysco’s margins during the quarter. At the same time, operating expenses increased slightly due to investments in sales capacity, workforce expansion, and technology initiatives aimed at improving service and efficiency.

📈 What Investors Are Watching Next

Investors will likely focus on further local case volume improvements and how Sysco sustains margin gains in the face of ongoing cost inflation. Additionally, the company’s execution of international growth strategies and any updates to full-year guidance will remain key catalyzing factors for stock performance.

Summary

Sysco’s second quarter fiscal 2026 earnings reveal a company delivering steady revenue growth, improved adjusted profitability, and positive operational momentum as it navigates industry challenges. While certain earnings metrics showed near-term pressure, the overall trajectory points toward continued expansion and improved execution across key business segments.