Sysco to Report Q1 Earnings: Should You Expect a Beat This Time?

Sysco Corporation (SYY) is likely to register an increase in both top and bottom lines when it reports first-quarter fiscal 2026 earnings on Oct. 28. The Zacks Consensus Estimate for Sysco’s quarterly revenues is pegged at $21.1 billion, which indicates 3% growth from the year-ago quarter.

The consensus mark for earnings has been stable in the past 30 days at $1.12 per share, indicating a rise of 2.8% from the year-ago quarter’s reported figure. SYY delivered a trailing four-quarter negative earnings surprise of 1.2%, on average.

Sysco Corporation Price, Consensus and EPS Surprise

Sysco Corporation price-consensus-eps-surprise-chart | Sysco Corporation Quote

Factors to Consider About Sysco’s Upcoming Results

Sysco has been benefiting from improved customer retention, which continues to underpin its recovering local case performance. The company is rebuilding long-term relationships after last year’s elevated salesforce turnover led to higher churn. With stabilized account management and more consistent service levels, Sysco has been retaining a larger share of existing clients, supporting steadier sales and profitability momentum. These upsides are likely to have contributed to the upcoming results.

The International segment is also expected to have remained a growth driver, aided by expanded sales headcount in key metros, localized assortment expansion and synergies from strategic sourcing.

Apart from this, Sysco has been benefiting from digital advancements, including the rollout of its AI-powered CRM platform that is enhancing sales efficiency and customer targeting. The launch of the Perks 2.0 loyalty program is deepening relationships with top clients through improved service levels and engagement. These initiatives are collectively likely to have supported stronger retention, higher order frequency and more profitable local business growth in the upcoming quarter.

However, rising product costs, along with higher operating expenses, have been weighing on Sysco’s profitability. Soft restaurant traffic, weaker consumer confidence and macroeconomic uncertainty have been dampening demand. Stiff competition and currency volatility in international markets are likely to have added pressure on pricing and overall profitability.

Earnings Whispers for SYY Stock

Our proven model does not conclusively predict an earnings beat for Sysco this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.

Sysco has a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Some Stocks With a Favorable Combination

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

Vital Farms (VITL) currently has an Earnings ESP of +8.84% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is expected to register growth in both top and bottom lines when it reports third-quarter 2025 results. The consensus mark for revenues is pegged at $191.1 million, which indicates an increase of 31.8% from the figure reported in the year-ago quarter. The Zacks Consensus Estimate for Vital Farms’ quarterly earnings per share of 29 cents implies an increase of 81.3% from 16 cents reported in the year-ago quarter. VITL delivered a trailing four-quarter earnings surprise of 35.8%, on average.

The Hershey Company (HSY) currently has an Earnings ESP of +0.19% and a Zacks Rank of 3. The company is likely to register a jump in the top line when it reports third-quarter 2025 numbers. The Zacks Consensus Estimate for Hershey’s quarterly revenues is pegged at $3.12 billion, which indicates an increase of 4.3% from the prior-year quarter.

The Zacks Consensus Estimate for quarterly earnings per share is pegged at $1.08, implying a 53.9% decrease from the year-ago period. HSY delivered a trailing four-quarter earnings surprise of 8.5%, on average.

Monster Beverage (MNST) currently has an Earnings ESP of +4.18% and a Zacks Rank of 3. The company is expected to register growth in both top and bottom lines when it reports third-quarter 2025 results. The consensus mark for revenues is pegged at $2.10 billion, which indicates an increase of 11.9% from the figure reported in the year-ago quarter.

The Zacks Consensus Estimate for Monster Beverage’s quarterly earnings per share of 48 cents implies an increase of 20% from 40 cents reported in the year-ago quarter. MNST delivered a trailing four-quarter earnings surprise of 0.2%, on average.

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This article originally published on Zacks Investment Research (zacks.com).

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