SYYSysco

The effects of climate change may create financial and operational risks to our business, both directly and indirectly. There is an increased focus around the world by regulatory and legislative bodies at all levels towards policies relating to climate change and the impact of global warming, including the regulation of greenhouse gas (GHG) emissions, energy usage and sustainability efforts. Increased compliance costs and expenses due to the impacts of climate change on our business, as well as additional legal or regulatory requirements regarding climate change or designed to reduce or mitigate the effects of carbon dioxide and other GHG emissions on the environment, may cause disruptions in, or an increase in the costs associated with, the running of our business, particularly with regard to our distribution and supply chain operations. Moreover, compliance with any such legal or regulatory requirements may require that we implement changes to our business operations and strategy, which would require us to devote substantial time and attention to these matters and cause us to incur additional costs. The effects of climate change, and legal or regulatory initiatives to address climate change, could have a long-term adverse impact on our business, results of operations and financial condition. Such adverse impacts may be incurred directly through damage to our own property or equipment or indirectly if such impacts adversely affect our suppliers. In addition, from time to time we establish and publicly announce goals and commitments related to sustainability matters, including those related to reducing our impact on the environment. Our current sustainability goals include to reduce our Scope 1 & 2 emissions by 27.5% by 2030 and to continue to encourage suppliers to reduce Scope 3 emissions (focusing on purchased goods and services and upstream transportation suppliers). Our ability to meet these and other related goals depends in part on significant technological advancements with respect to the development and availability of reliable, affordable and sustainable alternative solutions, including electric and other alternative fuel vehicles as well as alternative energy sources, which may not be developed or be available to us in the timeframe needed to achieve these goals. In addition, we may determine that it is in our best interests to revise our current goals based on economic or regulatory factors, business strategy or other factors. If we change or do not meet our publicly stated goals, then we may experience a negative reaction from the media, stockholders, activists and other interested stakeholders, and any perception that we have failed to act responsibly regarding climate change, whether or not valid, could result in adverse publicity and negatively affect our business and reputation. While we remain committed to being responsive to climate change and reducing our greenhouse gas footprint, there can be no assurance that our goals and strategic plans to achieve those goals will be successful, that the costs related to climate transition will not be higher than expected, that the necessary technological advancements will occur in the timeframe we expect, or at all, or that proposed regulation or deregulation related to climate change will not have a negative competitive impact, any one of which could have a material adverse effect on our business, financial condition and results of operations.

2026 2025 2024 Change in Dollars %/bps Change (In millions, except for share and per share data) Other expense (GAAP) $ 102 $ 38 $ 64 NM Impact of deal contingent rate lock transactions (4) (54) — (54) NM Other expense adjusted for Certain Items (Non-GAAP) $ 48 $ 38 $ 10 26.3% Net earnings (GAAP) $ 1,757 $ 1,828 $ (71) (3.9)% Impact of restructuring and transformational project costs (2) 287 183 104 56.8 Impact of acquisition-related costs (3) 232 160 72 45.0 Impact of goodwill impairment — 92 (92) NM Impact of bridge loan amortization (4) 30 — 30 NM Impact of deal contingent rate lock transactions (4) 54 — 54 NM Tax impact of restructuring and transformational project costs (5) (69) (42) (27) (64.3) Tax impact of acquisition-related costs (5) (56) (37) (19) (51.4) Tax impact of goodwill impairment (4) (10) (5) — (10) 10 NM Tax impact of bridge loan amortization (5) (7) — (7) NM Tax impact of deal contingent rate lock transactions (5) (13) — (13) NM Impact of other non-routine tax adjustments 10 — 10 (10) NM Net earnings adjusted for Certain Items (Non-GAAP) $ 2,215 $ 2,184 $ 2,167 $ 17 0.8% 31 1.4% Diluted earnings per share (GAAP) $ 3.66 $ 3.73 $ 3.89 $ (0.16) (4.1)% (0.07) (1.9)% Impact of restructuring and transformational project costs (2) 0.60 0.37 0.24 0.13 54.2 0.23 62.2 Impact of acquisition-related costs (3) 0.48 0.33 0.32 0.01 3.1 0.15 45.5 Impact of goodwill impairment 0.19 — 0.19 (0.19) NM Impact of bridge loan amortization (4) 0.06 — 0.06 NM Impact of deal contingent rate lock transactions (4) 0.11 — 0.11 NM Tax impact of restructuring and transformational project costs (4) (5) (0.14) (0.09) (0.06) (0.03) (50.0) (0.05) (55.6) Tax impact of acquisition-related costs (4) (5) (0.12) (0.08) (0.08) — — (0.04) (50.0) Tax impact of goodwill impairment (4) (0.02) (5) — (0.02) 0.02 NM Tax impact of bridge loan amortization (5) (0.01) — (0.01) NM Tax impact of deal contingent rate lock transactions (5) (0.03) — (0.03) NM Impact of other non-routine tax adjustments 0.02 — 0.02 (0.02) NM Diluted earnings per share adjusted for Certain Items (Non-GAAP) (5) (6) $ 4.61 $ 4.46 $ 4.31 $ 0.15 3.5% 3.4% Diluted shares outstanding 480,612,203 489,825,648 503,096,086

In our annual fiscal 2025 2026 assessment, we concluded that one reporting unit, Guest Worldwide, had a fair value less than book value due to its recent financial performance and downward revisions in its long-range financial outlook. In the fourth quarter of fiscal 2025 we recorded a noncash goodwill impairment charge of $92 million for a portion of the goodwill attributable to our Guest Worldwide reporting unit. This charge is included within operating expenses in the consolidated results of operations. All other all reporting units were concluded to have a fair value that exceeded book value.

We have contracts with various third-party service providers to receive information technology services and warehouse management services. The services have been committed for periods up to fiscal 2036 and may be extended. As of June 28, 2025, 27, 2026, the total remaining cost of the services over that period is expected to be approximately $184 $318 million. A portion of this committed amount may be reduced by Sysco utilizing less than estimated resources and can be increased by Sysco utilizing more than estimated resources. Certain agreements allow adjustments for inflation. Sysco may also cancel a portion or all of the services provided subject to termination fees that decrease over time. If Sysco were to terminate all of the services in fiscal 2027, the estimated termination fees incurred in fiscal 2027 would be approximately $21 million.