Sysco (SYY) Q1 2027 earnings summary

Executive summary

• Q1 FY27 sales rose 2.8% YoY to $21.744B; U.S. Foodservice local case volume grew 2.7%.

• Adjusted operating income increased 3.2% to $927M and adjusted diluted EPS rose 3.5% to $1.19; GAAP operating income fell 10.4% to $717M.

• Restaurant traffic was soft and fuel costs pressured results, while local case growth continued; FY27 sales growth is expected at the low end of guidance.

Financial highlights

• Gross profit increased 3.8% to $4.051B; gross margin expanded 18 bps to 18.63%.

• Net earnings rose 10.5% to $526M and diluted EPS rose 10.1% to $1.09; adjusted net earnings increased 4.2% to $574M.

• Adjusted EBITDA increased 5.4% to $1.128B; GAAP EBITDA rose 20.4% to $1.210B.

• Adjusted operating expenses were 14.37% of sales; total operating expenses increased 7.5%.

Outlook and guidance

• FY27 adjusted EPS growth guidance remains 9%–11%; sales growth is expected at the lower end of the 6%–7% range, including ~2% from the 53rd week.

• FY27 local case growth guidance remains ~2.5% on a comparable 52-week basis; inflation is expected at 1.0%–1.5%.

• FY27 guidance includes $100M in AI-enabled net cost savings, with benefits expected to accelerate in H2; the annualized efficiency program targets $500M.

• Jetro Restaurant Depot acquisition closing is expected by Q3 FY27, subject to regulatory clearance and customary conditions.