Sysco (NYSE:SYY) Reports Q4 CY2025 In Line With Expectations

Food distribution giant Sysco (NYSE:SYY) met Wall Streets revenue expectations in Q4 CY2025, with sales up 3% year on year to $20.76 billion. Its non-GAAP profit of $0.99 per share was 1.4% above analysts’ consensus estimates.

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“Sysco delivered strong results in the second quarter of fiscal year 2026. Our performance was driven by increased local case growth, and gross margin expansion. We delivered our third consecutive quarter of sequentially improving local case growth. More importantly, USFS local case volume is now positive, having delivered positive 1.2% case volume growth in the quarter. Our building momentum and progress with key growth initiatives gives us confidence that we will deliver at least 2.5% local case growth in the 2nd half of the fiscal year. Given the progress we are making, we now expect our full year adjusted EPS1 to be at the high end of our previously provided guidance range of $4.50-$4.60. While there is still more work to be done, I am pleased with the momentum of our business, and want to thank the entire organization for their steadfast commitment to our customers. It is an exciting time to be at Sysco,” said Kevin Hourican, Sysco’s Chair of the Board and Chief Executive Officer.

Company Overview

Powering more than 730,000 commercial kitchens across North America and Europe, Sysco (NYSE:SYY) is a global food distributor that supplies restaurants, healthcare facilities, schools, hotels, and other foodservice establishments with food products and related services.

Revenue Growth

A company’s long-term sales performance is one signal of its overall quality. Any business can have short-term success, but a top-tier one grows for years. Over the last five years, Sysco grew its sales at a 12.5% compounded annual growth rate. Although this growth is acceptable on an absolute basis, it fell short of our standards for the consumer discretionary sector, which enjoys a number of secular tailwinds.

Long-term growth is the most important, but within consumer discretionary, product cycles are short and revenue can be hit-driven due to rapidly changing trends and consumer preferences. Sysco’s recent performance shows its demand has slowed as its annualized revenue growth of 3.3% over the last two years was below its five-year trend.

This quarter, Sysco grew its revenue by 3% year on year, and its $20.76 billion of revenue was in line with Wall Street’s estimates.

Looking ahead, sell-side analysts expect revenue to grow 4.5% over the next 12 months, similar to its two-year rate. Although this projection suggests its newer products and services will spur better top-line performance, it is still below the sector average.

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Operating Margin

Sysco’s operating margin might fluctuated slightly over the last 12 months but has remained more or less the same, averaging 3.8% over the last two years. This profitability was inadequate for a consumer discretionary business and caused by its suboptimal cost structure.

In Q4, Sysco generated an operating margin profit margin of 3.3%, in line with the same quarter last year. This indicates the company’s overall cost structure has been relatively stable.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

Sysco’s EPS grew at a remarkable 46.9% compounded annual growth rate over the last five years, higher than its 12.5% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.

In Q4, Sysco reported adjusted EPS of $0.99, up from $0.93 in the same quarter last year. This print beat analysts’ estimates by 1.4%. Over the next 12 months, Wall Street expects Sysco’s full-year EPS of $4.58 to grow 3.4%.

Key Takeaways from Sysco’s Q4 Results

Revenue was just in line, but EPS managed to beat, which is encouraging. Overall, this was a decent quarter. The stock traded up 2.8% to $77.65 immediately after reporting.

Big picture, is Sysco a buy here and now? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here (it’s free).