Sysco (SYY) Q3 2026 earnings summary

Executive summary

• Q3 FY26 sales grew 4.7% year-over-year to $20.5B–$21B, with strong local volume gains and International segment leading at 12.4% growth.

• Gross profit increased 6.5% to $3.8B, but operating income declined 9.1% to $619M due to higher incentive compensation and acquisition costs; adjusted operating income was $768M, nearly flat year-over-year.

• Adjusted EPS was $0.94, down 2.1% year-over-year, impacted by a $63M incentive compensation headwind.

• Net earnings fell 15.2% to $340M; adjusted net earnings decreased 3.6% to $452M.

• Announced the planned $29.1B acquisition of Jetro Restaurant Depot, expanding into the cash and carry channel and aiming for significant synergies and margin expansion.

Financial highlights

• Gross margin improved by 31 basis points to 18.6% year-over-year.

• Adjusted operating income was $768M (-0.6% YoY); adjusted EBITDA was $970M (+0.1% YoY).

• Free cash flow year-to-date reached $1.1B, up 19%.

• Adjusted operating expenses were $3B, or 14.8% of sales, reflecting higher incentive compensation and investments in sales headcount.

• EPS decreased 13.4% to $0.71; adjusted EPS fell 2.1% to $0.94.

Outlook and guidance

• FY26 adjusted EPS expected at the high end of $4.50–$4.60, including a $100M headwind from incentive compensation.

• Net sales guidance for FY26 is $84B–$85B, with 3%–5% growth and inflation of ~2%.

• Q4 local case growth expected at least 2.5%, with continued momentum into FY27.

• Q4 adjusted EPS expected to be approximately $1.51.

• Projected closing of Jetro Restaurant Depot acquisition by Q3 FY27, subject to regulatory approval.