Sysco Corporation (NYSE:SYY) stock rose on Tuesday after the company reported second-quarter fiscal 2026 results.
Sysco’s customers include restaurant chains KFC, Subway, Burger King and Applebees.
The company reported second-quarter adjusted earnings per share of 99 cents, beating the analyst consensus estimate of 98 cents.
Quarterly Metrics
Quarterly sales came in at $20.762 billion, essentially matching the Street view of $20.767 billion and marking a 3.0% year-over-year increase.
U.S. Foodservice volume increased 0.8%, while U.S. local volumes grew 1.2%.
“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,” said Kevin Hourican, Sysco’s Chair of the Board and Chief Executive Officer.
Operating income decreased 2.8% to $692 million, while adjusted operating income increased 3.1% to $807 million.
EBITDA fell 0.9% to $923 million, while adjusted EBITDA rose 3.3% to $1.0 billion.
As of the end of the quarter, the company had a cash balance of $1.2 billion and total liquidity of $2.9 billion.
Outlook
Sysco said it expects fiscal 2026 adjusted EPS growth to land at the high end of its previously provided guidance range of $4.50-$4.60. The outlook remains in line with the company’s long-term financial targets.
Sysco CFO Kenny Cheung said the company is raising its full-year adjusted EPS outlook to the high end of its prior range, despite a roughly $100 million, or $0.16 per diluted share, headwind from lapping lower incentive compensation in fiscal 2025.
He added that excluding that impact, Sysco expects fiscal 2026 adjusted EPS growth at the high end of its 5% to 7% long-term target.
SYY Price Action: Sysco shares were up 7.36% at $81.20 at the time of publication on Tuesday, according to Benzinga Pro data.
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