Sysco Set to Report Q2 Earnings: Here's What to Expect From SYY

Sysco Corporation SYY is likely to witness top-and bottom-line growth when it reports second-quarter fiscal 2026 earnings on Jan. 27. The Zacks Consensus Estimate for revenues is pegged at $20.8 billion, indicating a 3.3% rise from the prior-year quarter’s reported figure. 

The consensus mark for earnings has remained unchanged in the past 30 days at 97 cents per share, which suggests 4.3% growth from the figure reported in the year-ago quarter. SYY has a trailing four-quarter earnings surprise of 0.4%, on average.

Factors Likely to Influence SYY’s Upcoming Results

Top-line growth in the second quarter is expected to have been driven primarily by continued improvement in U.S. Foodservice local volumes. During the first quarter, Sysco’s Broadline local business experienced positive inflection, with volumes improving each month of the quarter. Management stated that early second-quarter trends remained stronger than first-quarter levels and that U.S. Foodservice local volume is expected to improve by at least 100 basis points sequentially in the second quarter. 

The International segment is also positioned to support revenue growth, following solid sales growth and double-digit profit expansion in the first quarter. However, second-quarter sales growth is likely to have been adversely impacted by the year-over-year comparison of the Mexico joint venture divestiture completed in fiscal 2025. 

On the profitability front, the second quarter is expected to have benefited from sustained gross profit performance and disciplined expense management. In the first quarter, Sysco delivered gross margin expansion and adjusted earnings growth, driven by volume improvement, strategic sourcing benefits and productivity gains in the supply chain. On its first-quarter earnings call, management expressed confidence that these structural improvements, along with continued volume momentum early in the second quarter, will support year-over-year earnings growth in the upcoming quarter.

Earnings Whispers for SYY

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 carries a Zacks Rank #3 and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With the 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.

The Estee Lauder Companies EL currently has an Earnings ESP of +6.68% and a Zacks Rank of 2. The consensus estimate for Estee Lauder’s quarterly revenues is pinned at $4.23 billion, which indicates 5.7% growth from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Estee Lauder’s upcoming quarter’s EPS is pegged at 82 cents, which implies 32.3% growth year over year. EL delivered a trailing four-quarter earnings surprise of 82.6%, on average.

Tyson Foods TSN currently has an Earnings ESP of +4.48% and a Zacks Rank of 3. The consensus mark for the upcoming quarter’s revenues is pegged at $14.1 billion, which indicates an increase of 3.7% from the figure reported in the year-ago quarter. 

The Zacks Consensus Estimate for Tyson Foods’ quarterly earnings per share of 97 cents implies a decline of 14.9% from the figure reported in the year-ago quarter. TSN delivered a trailing four-quarter earnings surprise of 28.6%, on average.

Celsius Holdings, Inc. CELH currently has an Earnings ESP of +40.56% and a Zacks Rank of 3. The consensus estimate for Celsius Holdings’ quarterly revenues is pegged at $642.6 million, which indicates a surge of 93.4% from the figure reported in the prior-year quarter. 

The Zacks Consensus Estimate for Celsius Holdings’ upcoming quarter’s EPS is pegged at 18 cents, which implies a 28.6% increase year over year. CELH delivered a trailing four-quarter earnings surprise of roughly 42.9%, on average.

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

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