SYSCO REPORTS FIRST QUARTER 2027 RESULTS;
Sysco Corporation (NYSE:SYY) (“Sysco” or the “company”) today announced financial results for its 13-week first fiscal quarter ended September 26, 2026.
Key financial results for the first quarter of fiscal year 2027 include the following (comparisons are to the same period in fiscal year 2026):
• Sales increased 2.8%; U.S. Foodservice volume increased 2.6%; U.S. Foodservice local volume increased 2.7%;
• Operating income decreased 10.4% to $717 million, and adjusted operating income increased 3.2% to $927 million 1 ;
• Net earnings increased 10.5% to $526 million, and adjusted net earnings increased 4.2% to $574 million 1 ;
• EBITDA increased 20.4% to $1.2 billion 2 , and adjusted EBITDA increased 5.4% to $1.1 billion 1,2 ; and
“We are pleased to report a strong start to fiscal 2027. Our Q1 adjusted EPS performance was in-line with our expectations, fueled by positive volume growth, expanding gross margins, and disciplined expense control. We delivered profitable growth across the US and International segments despite continued softness in restaurant foot traffic, higher than expected fuel costs, and lower than expected U.S. food cost inflation. Sysco remains firmly focused on three priorities for the year: a) delivering with excellence for our customers, as well as our core Sysco financial commitments, b) improving our operating margins through AI-powered business transformation, and c) preparing for the anticipated closure of the Jetro Restaurant Depot transaction. I want to thank our entire team for their customer focus, the improvement in our business that they are delivering, and express how excited everyone at Sysco is for the year ahead,” said Kevin Hourican, Sysco’s Chair of the Board and Chief Executive Officer.
“Our teams delivered 2.7% local growth in our U.S. segment and grew adjusted operating income across our USFS and International segments. Our company specific initiatives kept us focused on the elements of performance within our control within a choppy operating environment. Looking ahead, we remain confident in our net cost savings targets enabled by AI technology which include our expectation for $100 million in savings included in our FY27 guidance, with benefits accelerating in the second half. We remain confident in delivering on our adjusted EPS growth guidance of 9%-11%, reflecting unchanged local volume growth assumptions of approximately 2.5%, while full year sales
1 Adjusted financial results, including adjusted operating expense, adjusted operating income (loss), adjusted net earnings, adjusted earnings per share (EPS) and adjusted EBITDA, among others, are non-GAAP financial measures that exclude certain items, which primarily include acquisition-related costs, restructuring and severance costs, and transformational project costs. Reconciliations of all non-GAAP financial measures to the nearest corresponding GAAP financial measure are included at the end of this release.
2 Earnings before interest, taxes, depreciation and amortization (EBITDA) and adjusted EBITDA are non-GAAP financial measures. Reconciliations of all non-GAAP financial measures to the nearest corresponding GAAP financial measure are included at the end of this release. 3 Earnings per share (EPS) are shown on a diluted basis, unless otherwise specified. 1
growth is now expected to be at the lower end of our 6%-7% range, reflecting a lower inflation environment for the industry,” said Brandon Sewell, Sysco’s Chief Financial Officer.
Gross profit increased 3.8% to $4.1 billion, and gross margin increased 18 basis points to 18.6%. Product cost inflation was 0.3% at the total enterprise level, as measured by the estimated change in Sysco’s product costs, primarily in the meat category. The increase in gross profit for the first quarter was primarily driven by growth from local volumes, benefits associated with tariffs, strategic sourcing efficiencies, and Sysco Brand penetration.
Operating expenses increased 7.5%, driven by acquisition-related costs, higher volumes, and investments in higher growth areas of the business. Adjusted operating expenses increased 4.0% 1 .
Operating income decreased 10.4% to $717 million, driven by acquisition costs related to Jetro Restaurant Depot. Adjusted operating income increased 3.2% to $927 million 1 .
The U.S. Foodservice Operations segment results were driven by balanced volume growth, positive Sysco Brand penetration rates, effective margin management, and benefits associated with tariffs.
Sales for the first quarter increased 2.4% to $15.1 billion. Total case volume within U.S. Foodservice increased 2.6% for the first quarter, and local case volume within U.S. Foodservice increased 2.7%.
Gross profit increased 3.2% to $2.9 billion, and gross margin increased 14 basis points to 19.2%.
Operating expenses increased 3.9%, and adjusted operating expenses increased 3.4% 1 .
Operating income increased 1.6% to $894 million, and adjusted operating income increased 2.7% to $941 million 1 .
The International Foodservice Operations segment continued to deliver strong top-line growth, including local volume growth, expanded margins, and double- digit adjusted profit growth.
Sales for the first quarter increased 5.1% to $4.2 billion. On a constant currency basis 4 , sales for the first quarter increased 6.0% to $4.2 billion. Foreign exchange rates decreased both International Foodservice Operations sales by 0.9% and total Sysco sales by 0.2% during the quarter.
Gross profit increased 7.4% to $887 million, and gross margin increased 45 basis points to 21.3%. On a constant currency basis 4 , gross profit increased 8.1% to $893 million. Foreign exchange rates decreased both International Foodservice Operations gross profit by 0.7% and total Sysco gross profit by 0.2% during the quarter.
Operating expenses increased 13.1%, and adjusted operating expenses increased 6.3% 1 . On a constant currency basis 4 , adjusted operating expenses increased 7.1%. Foreign exchange rates decreased both International Foodservice Operations operating expenses by 0.8% and total Sysco operating expenses by 0.2% during the quarter.
4 Represents a constant currency adjustment, which eliminates the impact of foreign currency fluctuations on current year results. These adjusted measures are non-GAAP financial measures. Reconciliations of all non-GAAP financial measures to the nearest corresponding GAAP financial measure are included at the end of this release. 2 Operating income decreased 28.1% to $82 million, and adjusted operating income increased 12.2% to $165 million 1 . On a constant currency basis 4 , adjusted operating income increased 12.9% to $166 million. Foreign exchange rates decreased International Foodservice Operations operating income by 0.7% and had a negligible impact on total Sysco operating income during the quarter.
As of the end of the quarter, the company had a cash balance of $3.2 billion and total liquidity of $5.8 billion.
Debt to net earnings was approximately 7.7 times, and Net Debt to adjusted EBITDA 5 was approximately 2.4 times.
During the first 13 weeks of fiscal year 2027, Sysco returned $264 million to shareholders via dividends.
Cash flow from operations was $278 million and free cash flow 6 was $230 million for the first 13 weeks of fiscal year 2027.
Capital expenditures, net of proceeds from sales of plant and equipment, for the first 13 weeks of fiscal year 2027 were $48 million.
5 Net debt to adjusted EBITDA is a non-GAAP financial measure frequently used by investors and credit rating agencies. Our net debt to adjusted EBITDA ratio is calculated using a numerator of our debt minus cash and cash equivalents, divided by the sum of the most recent four quarters of adjusted EBITDA. Reconciliations of all non-GAAP financial measures to the nearest corresponding GAAP financial measure are included at the end of this release.
6 Free cash flow is a non-GAAP financial measure that represents net cash provided from operating activities less purchases of plant and equipment and includes proceeds from sales of plant and equipment. Reconciliations of all non- GAAP financial measures to the nearest corresponding GAAP financial measure are included at the end of this release.
Sysco will host a conference call to review the company’s first quarter fiscal year 2027 financial results on Tuesday, November 3, 2026, at 10:00 a.m. Eastern Time. A live webcast of the call, accompanying slide presentation and a copy of this news release will be available online at investors.sysco.com .
Key Highlights: Financial 13-Week Period Ended Comparison: September 26, 2026 September 27, 2025 Change ────────────────────────────────────────────────────────────────────────────── GAAP: Sales $21.7 billion $21.1 billion 2.8% Gross Profit $4.1 billion $3.9 billion 3.8% Gross Margin 18.6% 18.5% 18 bps Operating Expenses $3.3 billion $3.1 billion 7.5% Operating Income $717 million $800 million -10.4% Operating Margin 3.3% 3.8% -48 bps Net Earnings $526 million $476 million 10.5% Diluted Earnings $1.09 $0.99 10.1% Per Share Non-GAAP(1): Adjusted Operating $3.1 billion $3.0 billion 4.0% Expenses Adjusted Operating $927 million $898 million 3.2% Income Adjusted Operating 4.3% 4.3% 1 bp Margin EBITDA $1.2 billion $1.0 billion 20.4% Adjusted EBITDA $1.1 billion $1.1 billion 5.4% Adjusted Net $574 million $551 million 4.2% Earnings Adjusted Diluted Earnings Per $1.19 $1.15 3.5% Share(2) Case Growth: U.S. Foodservice 2.6% 0.1% Local 2.7% -0.2% Sysco Brand Sales as a % of Cases(3): U.S. Broadline 35.8% 35.7% 8 bps Local 46.6% 46.2% 44 bps Note: (1)Reconciliations of all non-GAAP financial measures to the nearest respective GAAP financial measures are included at the end of this release. (2)Individual components in the table above may not sum to the totals due to the rounding. (3)Amounts reflect the impact of current customer classifications; prior period history has been reclassified to match the current period customer classification.
Statements made in this press release or in our earnings call for the first quarter of fiscal year 2027 that look forward in time or that express management’s beliefs, expectations or hopes are forward-looking statements under the Private Securities Litigation Reform Act of 1995. These statements concern, among other things, our future financial performance and results, business strategy, plans, goals and objectives, including certain outlook, business trends, our dividend and share repurchase programs, our expectation of future macroeconomic conditions and other statements that are not historical facts, including our expectations regarding foot traffic and volume growth and benefits to gross margins; our expectations regarding our future growth, including growth in sales and earnings per share; and our expectations regarding cost savings associated with AI, as well as statements about the expected timing and completion of the proposed transaction with Jetro Restaurant Depot and the anticipated benefits of such proposed transaction, including estimated synergies, and plans, impact on Sysco and expectations for Sysco after completion of the proposed transaction.
Such forward-looking statements reflect the views of management at the time such statements are made and are subject to a number of risks, uncertainties, estimates, and assumptions, including those outside of Sysco’s control. Risks and uncertainties include without limitation: the impact of geopolitical, economic and market conditions and developments, including changes in global trade policies and tariffs and foreign conflicts; risks related to our business initiatives; periods of significant or prolonged inflation or deflation and their impact on our product costs, volume, foot traffic, and profitability generally; risks related to our efforts to implement our transformation initiatives and meet our other long-term strategic objectives; risk of interruption of supplies and increase in product costs; risks related to changes in consumer eating habits; and impact of natural disasters or adverse weather conditions, public health crises, adverse publicity or lack of confidence in our products, and product liability claims as well as risks and uncertainties associated with our proposed transaction with Jetro Restaurant Depot, including but not limited to, the occurrence of any event, change or other circumstances that could give rise to the right of either or both parties to terminate the merger agreement; the risk that regulatory approvals may not be obtained or other closing conditions may not be satisfied in a timely manner or at all, as well as the risk that regulatory approvals are obtained subject to conditions that are not anticipated; the risk of other delays in closing the transaction; the possibility that any of the anticipated benefits and projected synergies of the transaction will not be realized or will not be realized within the expected time period; and the risk that the proposed transaction and its announcement could have an adverse effect on the market price of the common stock of Sysco. Should one or more of these risks or uncertainties materialize, or underlying assumptions prove incorrect, actual results may vary materially from those indicated in our forward-looking statements. Therefore, you should not place undue reliance on any of the forward-looking statements contained herein. For more information on these risks and other concerning factors that could cause actual results to differ from those expressed or forecasted, see our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and other filings with the SEC. We do not undertake to update our forward-looking statements, except as required by applicable law. 5
Sysco is the global leader in selling, marketing and distributing food and related products to customers who prepare meals away from home. This includes restaurants, healthcare and educational facilities, lodging establishments, entertainment venues, and more. Sysco operates 333 distribution centers, in 10 countries, with 75,000 colleagues serving approximately 670,000 customer locations. The company generated sales of more than $84 billion in fiscal year 2026 that ended June 27, 2026.
As the world’s largest food-away-from-home distributor, Sysco offers customized supply chain solutions, bespoke specialty product offerings, and culinary support to drive customers to innovate and optimize their operations. We act as a trusted business partner to our customers, helping them grow through our industry-leading portfolio that includes fresh produce, premium proteins, specialty products, sustainably focused items, equipment and supplies, and innovative culinary solutions.
For more information, visit www.sysco.com . For important news and key information for Sysco investors, visit the Investor Relations section of the company’s website at investors.sysco.com .
Sysco Corporation and its Consolidated Subsidiaries CONSOLIDATED RESULTS OF OPERATIONS (Unaudited) (In Millions, Except for Share and Per Share 13-Week Period Data) Ended Sep. 26, 2026 Sep. 27, 2025 ────────────────────────────────────────────────────────────────────────────── Sales $ 21,744 $ 21,148 Cost of sales 17,693 17,247 Gross profit 4,051 3,901 Operating expenses 3,334 3,101 Operating income 717 800 Interest expense 261 172 Other expense (income), -231 28 net(1) Earnings before income 687 600 taxes Income taxes 161 124 Net earnings $ 526 $ 476 Net earnings: Basic earnings per $ 1.09 $ 0.99 share Diluted earnings per 1.09 0.99 share Average shares 481,341,826 478,761,180 outstanding Diluted shares 482,945,241 480,365,666 outstanding (1)Sysco’s first quarter of fiscal 2027 included a gain of $234 million in other income related to deal contingent rate lock transactions entered into to mitigate interest rate risk on permanent debt issued to finance the purchase of JRD Unico, Inc. and Warehouse Realty, LLC (collectively, Jetro Restaurant Depot or JRD).
Sysco Corporation and its Consolidated Subsidiaries CONSOLIDATED BALANCE SHEETS (In Millions, Except for Share Data) Sep. 26, 2026 Jun. 27, 2026 ────────────────────────────────────────────────────────────────────────────── -Unaudited ASSETS Current assets Cash and cash $ 3,171 $ 1,786 equivalents Accounts receivable, less allowances of 6,296 5,865 $38 and $13 Inventories 5,455 5,338 Prepaid expenses and other current 484 427 assets Income tax receivable 6 21 Total current assets 15,412 13,437 Plant and equipment at cost, less 5,886 5,974 accumulated depreciation Other long-term assets Goodwill 5,231 5,225 Intangibles, less 899 952 amortization Deferred income taxes 525 506 Operating lease 1,452 1,389 right-of-use assets, net Other assets 1,043 914 Total other long-term 9,150 8,986 assets Total assets $ 30,448 $ 28,397 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities Accounts payable $ 6,736 $ 6,640 Accrued expenses 2,473 2,456 Accrued income taxes 186 60 Current operating lease 170 166 liabilities Current maturities of 960 1,201 long-term debt Total current 10,525 10,523 liabilities Long-term liabilities Long-term debt 12,860 12,315 Deferred income taxes 486 456 Long-term operating 1,349 1,285 lease liabilities Other long-term 1,186 1,152 liabilities Total long-term 15,881 15,208 liabilities Shareholders’ equity Preferred stock, par value $1 per share — — Authorized 1,500,000 shares, issued none Common stock, par value $1 per share Authorized 2,000,000,000 778 765 shares, issued 777,520,579 and 765,174,900 shares Paid-in capital 3,077 2,114 Retained earnings 14,002 13,748 Accumulated other -906 -1,014 comprehensive loss Treasury stock at cost, 285,593,166 and -12,909 -12,947 286,631,270 shares Total shareholders’ 4,042 2,666 equity Total liabilities and shareholders’ $ 30,448 $ 28,397 equity
Sysco Corporation and its Consolidated Subsidiaries CONSOLIDATED CASH FLOWS (Unaudited) 13-Week Period (In Millions) Ended Sep. 26, 2026 Sep. 27, 2025 ────────────────────────────────────────────────────────────────────────────── Cash flows from operating activities: Net earnings $ 526 $ 476 Adjustments to reconcile net earnings to cash provided by operating activities: Share-based 28 31 compensation expense Depreciation and 262 233 amortization Operating lease asset 41 37 amortization Amortization of debt issuance and other 94 4 debt-related costs Deferred income taxes 21 -5 Provision for losses on 24 30 receivables Gain on deal contingent rate lock -234 — transactions Other non-cash items -23 8 Additional changes in certain assets and liabilities, net of effect of businesses acquired:
Increase in receivables -280 -349 Increase in inventories -115 -335 Increase in prepaid expenses and other -86 -42 current assets Increase in accounts 70 82 payable Decrease in accrued -132 -83 expenses Decrease in operating -56 -49 lease liabilities Increase in accrued 141 66 income taxes Decrease (increase) in 2 -11 other assets Decrease in other -5 -7 long-term liabilities Net cash provided by operating 278 86 activities Cash flows from investing activities: Additions to plant and -97 -160 equipment Proceeds from sales of plant and 49 24 equipment Purchase of marketable -135 — securities Proceeds from sales of marketable 10 7 securities Other investing — 22 activities Net cash used for -173 -107 investing activities Cash flows from financing activities: Bank and commercial paper borrowings, 379 76 net Other debt borrowings including senior 1,067 2 notes Other debt repayments including senior -1,045 -42 notes Debt issuance costs -47 -3 Proceeds from termination of interest 70 — rate swap agreements Proceeds from stock 37 43 option exercises Proceeds from common 1,000 — stock issuances Stock issuance costs -33 — Dividends paid -264 -259 Other financing -14 -12 activities Net cash provided by (used for) 1,150 -195 financing activities Effect of exchange rates on cash, cash -3 -6 equivalents and restricted cash Net increase (decrease) in cash, cash 1,252 -222 equivalents and restricted cash Cash, cash equivalents and restricted 2,117 1,349 cash at beginning of period
Cash, cash equivalents and restricted $ 3,369 $ 1,127 cash at end of period Supplemental disclosures of cash flow information: Cash paid during the period for: Interest $ 200 $ 178 Income taxes, net of refunds 39 31
Sysco Corporation and its Consolidated Subsidiaries Non-GAAP Reconciliation (Unaudited) Impact of Certain Items The discussion of our results includes certain non-GAAP financial measures, including EBITDA and adjusted EBITDA, that we believe provide important perspective with respect to underlying business trends. Other than EBITDA and free cash flow, any non-GAAP financial measures will be denoted as adjusted measures to remove (1) restructuring charges; (2) expenses associated with our various transformation initiatives; (3) severance charges; and (4) acquisition-related costs consisting of: (a) intangible amortization expense and (b) acquisition costs and due diligence costs related to our acquisitions. Adjustments provided herein for fiscal 2027 results of operations also remove amortization expense associated with debt issuance costs on a bridge loan facility and a gain on deal contingent rate lock transactions entered into to mitigate interest rate risk on permanent debt issued to finance the JRD Acquisition Transactions. No similar charges were applicable in the first quarter of fiscal 2026. The results of our operations can be impacted due to changes in exchange rates applicable in converting local currencies to U.S. dollars. We measure our results on a constant currency basis. Constant currency operating results are calculated by translating current-period local currency operating results with the currency exchange rates used to translate the financial statements in the comparable prior-year period to determine what the current-period U.S. dollar operating results would have been if the currency exchange rate had not changed from the comparable prior-year period. ────────────────────────────────────────────────────────────────────────────── Management believes that adjusting its operating expenses, operating income, operating margin, interest expense, other (income) expense, net earnings and diluted earnings per share to remove these Certain Items, presenting its results on a constant currency basis, provides an important perspective with respect to our underlying business trends and results. It provides meaningful supplemental information to both management and investors that (1) is indicative of the performance of the company’s underlying operations and (2) facilitates comparisons on a year-over-year basis. Sysco has a history of growth through acquisitions and excludes from its non-GAAP financial measures the impact of acquisition-related intangible amortization, acquisition costs and due-diligence costs for those acquisitions. We believe this approach significantly enhances the comparability of Sysco’s results for fiscal 2027 and fiscal 2026. Set forth on the following page is a reconciliation of sales, operating expenses, operating income, interest expense, other (income) expense, net earnings and diluted earnings per share to adjusted results for these measures for the periods presented. Individual components of diluted earnings per share may not be equal to the total presented when added due to rounding. Adjusted diluted earnings per share is calculated using adjusted net earnings divided by diluted shares outstanding. The non-GAAP financial measures shown in the following tables should not be used as a substitute for the most comparable GAAP financial measures in assessing the company’s financial performance for the periods presented. An analysis of any non-GAAP financial measure should be used in conjunction with results presented in accordance with GAAP.
Sysco Corpo… and its Conso… Subsi… Non-G… Recon… (Unau… Impact of Certa… Items (Doll… in Milli… Except for 13-Week 13-Week Share Period Period and Ended Ended Per Sep. Sep. Change Share 26, 27, in %/bps Data) 2026 2025 Dollars Change ────────────────────────────────────────────────────────────────────────────── Sales $ 21,744 $ 21,148 $ 596 2.8 % (GAAP) Impact of 35 35 0.2 curre… fluct… Compa… sales using a $ 21,779 $ 21,148 $ 631 3.0 % const… curre… basis (Non-… Gross profit $ 4,051 $ 3,901 $ 150 3.8 % (GAAP) Impact of 6 6 0.2 curre… fluct… Compa… gross profit adjus… for Certa… Items $ 4,057 $ 3,901 $ 156 4.0 % using a const… curre… basis (Non-… Gross margin 18.63 % 18.45 % 18 bps (GAAP) Impact of — 0 bps curre… fluct… Compa… gross margin adjus… for Certa… Items 18.63 % 18.45 % 18 bps using a const… curre… basis (Non-… Opera… expen… $ 3,334 $ 3,101 $ 233 7.5 % (GAAP) Impact of restr… trans… -102 -56 -46 -82.1 proje… and other costs… Impact of -108 -42 -66 NM acqui… costs… Opera… expen… adjus… for 3,124 3,003 121 4.0 Certa… Items (Non-… Impact of 6 6 0.2 curre… fluct… Compa… opera… expen… adjus… for Certa… Items $ 3,130 $ 3,003 $ 127 4.2 % using a const… curre… basis (Non-… Opera… expen… as a perce… 15.33 % 14.66 % 67 bps of sales (GAAP) Impact of certa… -0.96 -0.46 -50 bps item adjus… Adjus… opera… expen… as a 14.37 % 14.20 % 17 bps perce… of sales (Non-… Opera… income $ 717 $ 800 $ -83 -10.4 % (GAAP) Impact of restr… trans… 102 56 46 82.1 proje… and other costs… Impact of 108 42 66 NM acqui… costs… Opera… income adjus… for 927 898 29 3.2 Certa… Items (Non-… Impact of — — — curre… fluct… Compa… opera… income adjus… for Certa… Items $ 927 $ 898 $ 29 3.2 % using a const… curre… basis (Non-… Opera… margin 3.30 % 3.78 % -48 bps (GAAP) Opera… margin adjus… for 4.26 % 4.25 % 1 bp Certa… Items (Non-… Opera… margin adjus… for Certa… Items 4.26 % 4.25 % 1 bp using a const… curre… basis (Non-… Inter… expen… $ 261 $ 172 $ 89 51.7 % (GAAP) Impact of bridge -90 — -90 NM loan amort… Inter… expen… adjus… for $ 171 $ 172 $ -1 -0.6 % Certa… Items (Non-… Other (inco… $ -231 $ 28 $ -259 NM expen… (GAAP) Impact of deal conti… rate lock trans… and other items 237 — 237 NM assoc… with the plann… acqui… of Jetro Resta… Depot… Other expen… adjus… for $ 6 $ 28 $ -22 -78.6 % Certa… Items (Non-… Net earni… $ 526 $ 476 $ 50 10.5 % (GAAP) Impact of restr… trans… 102 56 46 82.1 proje… and other costs…
Impact of acquisition-re… 108 42 66 NM costs(3) Impact of bridge loan 90 — 90 NM amortization(4) Impact of deal contingent rate lock transactions and other items associated -237 — -237 NM with the planned acquisition of Jetro Restaurant Depot(4) Tax impact of restructuring, transformation… -24 -13 -11 -84.6 project, and other costs(5) Tax impact of acquisition-re… -26 -10 -16 NM costs(5) Tax impact of bridge loan -22 — -22 NM amortization(5) Tax impact of deal contingent rate lock transactions and other items associated 57 — 57 NM with the planned acquisition of Jetro Restaurant Depot(5) Net earnings adjusted for $ 574 $ 551 $ 23 4.2 % Certain Items (Non-GAAP) Diluted earnings per $ 1.09 $ 0.99 $ 0.10 10.1 % share (GAAP) Impact of restructuring, transformation… 0.21 0.12 0.09 75.0 project, and other costs(2) Impact of acquisition-re… 0.22 0.09 0.13 NM costs(3) Impact of bridge loan 0.19 — 0.19 NM amortization(4) Impact of deal contingent rate lock transactions and other items associated -0.49 — -0.49 NM with the planned acquisition of Jetro Restaurant Depot(4) Tax impact of restructuring, transformation… -0.05 -0.03 -0.02 -66.7 project, and other costs(5) Tax impact of acquisition-re… -0.05 -0.02 -0.03 NM costs(5) Tax impact of bridge loan -0.05 — -0.05 NM amortization(5) Tax impact of deal contingent rate lock transactions and other items associated 0.12 — 0.12 NM with the planned acquisition of Jetro Restaurant Depot(5) Diluted earnings per share adjusted $ 1.19 $ 1.15 $ 0.04 3.5 % for Certain Items (Non-GAAP)(6) Diluted shares 482,945,241 480,365,666 outstanding
(1) Represents a constant currency adjustment, which eliminates the impact of foreign currency fluctuations on the current year results. Fiscal 2027 includes $80 million related to various transformation initiative costs, primarily consisting of supply chain transformation costs and changes to our business technology strategy, and $22 (2) million related to restructuring and severance charges. Fiscal 2026 includes $46 million related to various transformation initiative costs, primarily consisting of supply chain transformation costs and changes to our business technology strategy, and $10 million related to restructuring and severance charges. Fiscal 2027 includes $56 million in acquisition and due diligence (3) costs and $52 million of intangible amortization expense. Fiscal 2026 includes $31 million of intangible amortization expense and $11 million in acquisition and due diligence costs. Fiscal 2027 primarily includes $90 million of amortization expense associated with debt issuance costs on a bridge loan facility and a (4) gain of $234 million on deal contingent rate lock transactions, both of which are related to the planned acquisition of Jetro Restaurant Depot. The tax impact of adjustments for Certain Items is calculated by (5) multiplying the pretax impact of each Certain Item by the statutory rates in effect for each jurisdiction where the Certain Item was incurred. Individual components of diluted earnings per share may not equal the (6) total presented when added due to rounding. Total diluted earnings per share is calculated using adjusted net earnings divided by diluted shares outstanding. NM Represents that the percentage change is not meaningful.
Operating $ 146 $ 145 $ 1 0.7 % expenses (GAAP) Operating income 21 25 -4 -16.0 % (GAAP) OTHER Sales (GAAP) $ 282 $ 273 $ 9 3.3 % Gross profit 75 68 7 10.3 % (GAAP) Gross margin 26.60 % 24.91 % 169 bps (GAAP) Operating $ 66 $ 64 $ 2 3.1 % expenses (GAAP) Operating income 9 4 5 NM (GAAP) GLOBAL SUPPORT CENTER Gross profit $ 9 $ 14 $ -5 -35.7 % (GAAP) Operating $ 298 $ 237 $ 61 25.7 % expenses (GAAP) Impact of restructuring and -27 -26 -1 -3.8 transformational project costs(5) Impact of acquisition-rel… -53 -3 -50 NM costs(6) Operating expenses adjusted for $ 218 $ 208 $ 10 4.8 % Certain Items (Non-GAAP) Operating loss $ -289 $ -223 $ -66 -29.6 % (GAAP) Impact of restructuring and 27 26 1 3.8 transformational project costs(5) Impact of acquisition-rel… 53 3 50 NM costs(6) Operating loss adjusted for $ -209 $ -194 $ -15 -7.7 % Certain Items (Non-GAAP) TOTAL SYSCO Sales (GAAP) $ 21,744 $ 21,148 $ 596 2.8 % Gross profit 4,051 3,901 150 3.8 % (GAAP) Gross margin 18.63 % 18.45 % 18 bps (GAAP) Operating $ 3,334 $ 3,101 $ 233 7.5 % expenses (GAAP) Impact of restructuring, transformational -102 -56 -46 -82.1 project, and other costs(1) (4) (5) Impact of acquisition-rel… -108 -42 -66 NM costs(2) (6) Operating expenses adjusted for $ 3,124 $ 3,003 $ 121 4.0 % Certain Items (Non-GAAP) Operating income $ 717 $ 800 $ -83 -10.4 % (GAAP) Impact of restructuring, transformational 102 56 46 82.1 project, and other costs(1) (4) (5) Impact of acquisition-rel… 108 42 66 NM costs(2) (6) Operating income adjusted for $ 927 $ 898 $ 29 3.2 % Certain Items (Non-GAAP)
(In Millions) Free cash flow represents net cash provided from operating activities less purchases of plant and equipment and includes proceeds from sales of plant and equipment. Sysco considers free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business after the purchases and sales of buildings, fleet, equipment and technology, which may potentially be used to pay for, among other things, strategic uses of cash including dividend payments, share repurchases and acquisitions. However, free cash flow may not be available for discretionary expenditures, as it may be necessary that we use it to make mandatory debt service or other payments. Free cash flow should not be used as a substitute for the most comparable GAAP financial measure in assessing the company’s liquidity for the periods presented. An analysis of any non-GAAP financial measure should be used in conjunction with results presented in accordance with GAAP. In the table that follows, free cash flow for each period presented is reconciled to net cash provided by operating activities.
Impact of Certain Items on Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)
(Dollars in Millions) EBITDA represents net earnings (loss) plus (i) interest expense, (ii) income tax expense and benefit, (iii) depreciation and (iv) amortization. The net earnings (loss) component of our EBITDA calculation is impacted by Certain Items that we do not consider representative of our underlying performance. As a result, in the non-GAAP reconciliations below for each period presented, adjusted EBITDA is computed as EBITDA plus the impact of Certain Items, excluding certain items related to interest expense, income taxes, depreciation and amortization. Sysco's management considers growth in this metric to be a measure of overall financial performance that provides useful information to management and investors about the profitability of the business, as it facilitates comparison of performance on a consistent basis from period to period by providing a measurement of recurring factors and trends affecting our business. Additionally, it is a commonly used component metric used to inform on capital structure decisions. Adjusted EBITDA should not be used as a substitute for the most comparable GAAP financial measure in assessing the company’s financial performance for the periods presented. An analysis of any non-GAAP financial measure should be used in conjunction with results presented in accordance with GAAP. In the tables that follow, adjusted EBITDA for each period presented is reconciled to net earnings.
Fiscal 2027 and fiscal 2026 include charges related to restructuring and severance, as well as various transformation initiative costs, (1) primarily consisting of supply chain transformation costs and changes to our business technology strategy, excluding charges related to accelerated depreciation. (2) Fiscal 2027 and fiscal 2026 include acquisition and due diligence costs. Fiscal 2027 primarily includes a gain on deal contingent rate lock (3) transactions related to the planned acquisition of Jetro Restaurant Depot. In arriving at adjusted EBITDA, Sysco does not exclude interest (4) income of $7 million and $6 million or non-cash stock compensation expense of $28 million and $31 million in fiscal 2027 and fiscal 2026, respectively. Fiscal 2027 represents $231 million in GAAP other expense (income), net less $237 million in income primarily from a gain on deal (5) contingent rate lock transactions entered into to mitigate interest rate risk on permanent debt issued to finance the purchase of Jetro Restaurant Depot. Fiscal 2026 represents $28 million in GAAP other expense (income), net. Fiscal 2027 includes $262 million in GAAP depreciation and amortization expense, less $55 million of Non-GAAP depreciation and (6) amortization expense primarily related to acquisitions. Fiscal 2026 includes $233 million in GAAP depreciation and amortization expense, less $33 million of Non-GAAP depreciation and amortization expense primarily related to acquisitions. NM Represents that the percentage change is not meaningful.
(In Millions) Net Debt to Adjusted EBITDA is a non-GAAP financial measure frequently used by investors and credit rating agencies. It is an important measure used by management to evaluate our access to liquidity, and we believe it is a representation of our financial strength. Our Net Debt to Adjusted EBITDA ratio is calculated using a numerator of our debt minus cash and cash equivalents, divided by the sum of the most recent four quarters of Adjusted EBITDA. In the table that follows, we have provided the calculation of our debt and net debt as a ratio of Adjusted EBITDA.
Sep. 26, 2026 ──────────────────────────────────────────────────────────────────────── Current maturities of long-term debt $ 960 Long-term debt 12,860 Total Debt (GAAP) 13,820 Cash & Cash Equivalents -3,171 Net Debt (Non-GAAP) $ 10,649 Net Earnings for the previous 12 months $ 1,806 (GAAP) Adjusted EBITDA for the previous 12 $ 4,445 months (Non-GAAP)(1) Total Debt/Net Earnings Ratio (GAAP) 7.65 Total Debt/Adjusted EBITDA Ratio 3.11 (Non-GAAP) Net Debt/Adjusted EBITDA Ratio 2.40 (Non-GAAP) Note: (1)Refer to non-GAAP reconciliation at the end of this release.
Impact of Certain Items on Earnings Before Interest, Taxes, Depreciation and Amortization (Trailing Twelve Months)
Includes charges related to restructuring and severance, as well as various transformation initiative costs, primarily consisting of supply chain transformation costs and changes to our business (1) technology strategy, excluding charges related to accelerated depreciation. In addition, the 13-week period ended Jun. 27, 2026 includes the reversal of charges associated with a legal matter that were included in the 13-week period ended Mar. 28, 2026. (2) Includes acquisition and due diligence costs. The 13-week period ended Sep. 26, 2026 includes a gain on deal contingent rate lock transactions related to the planned acquisition (3) of Jetro Restaurant Depot. The 13-week period ended Jun. 27, 2026 includes a loss on deal contingent rate lock transactions related to the planned acquisition of Jetro Restaurant Depot. In arriving at adjusted EBITDA, Sysco does not adjust out interest income of $7 million or non-cash stock compensation expense of $28 million in Q1 fiscal year 2027, interest income of $8 million or (4) non-cash stock compensation expense of $24 million in Q4 fiscal year 2026, interest income of $6 million or non-cash stock compensation expense of $31 million in Q3 fiscal year 2026, and interest income of $5 million or non-cash stock compensation expense of $33 million in Q2 fiscal year 2026.
Adjusted earnings per share is a non-GAAP financial measure; however, we cannot predict with certainty certain items that would be included in the most directly comparable GAAP measure for the relevant future periods. Due to these uncertainties, we cannot provide a quantitative reconciliation of projected adjusted EPS to the most directly comparable GAAP financial measure without unreasonable effort. However, we expect to calculate adjusted earnings per share for future periods in the same manner as the reconciliations provided for the historical periods herein. 20
Full text with the tables
SYSCO REPORTS FIRST QUARTER 2027 RESULTS;
REITERATES FY27 ADJUSTED EPS AND LOCAL VOLUME GUIDANCE
HOUSTON, November 3, 2026 -
Sysco Corporation (NYSE:SYY) (“Sysco” or the “company”) today announced
financial results for its 13-week first fiscal quarter ended September 26, 2026.
Key financial results for the first quarter of fiscal year 2027 include the
following (comparisons are to the same period in fiscal year 2026):
• Sales increased 2.8%; U.S. Foodservice volume increased 2.6%; U.S. Foodservice
local volume increased 2.7%;
• Gross profit increased 3.8% to $4.1 billion;
• Operating income decreased 10.4% to $717 million, and adjusted operating
income increased 3.2% to $927 million 1 ;
• Net earnings increased 10.5% to $526 million, and adjusted net earnings
increased 4.2% to $574 million 1 ;
• EBITDA increased 20.4% to $1.2 billion 2 , and adjusted EBITDA increased 5.4%
to $1.1 billion 1,2 ; and
• EPS 3 increased 10.1% to $1.09, and adjusted EPS 1 increased 3.5% to $1.19.
“We are pleased to report a strong start to fiscal 2027. Our Q1 adjusted EPS
performance was in-line with our expectations, fueled by positive volume growth,
expanding gross margins, and disciplined expense control. We delivered
profitable growth across the US and International segments despite continued
softness in restaurant foot traffic, higher than expected fuel costs, and lower
than expected U.S. food cost inflation. Sysco remains firmly focused on three
priorities for the year: a) delivering with excellence for our customers, as
well as our core Sysco financial commitments, b) improving our operating margins
through AI-powered business transformation, and c) preparing for the anticipated
closure of the Jetro Restaurant Depot transaction. I want to thank our entire
team for their customer focus, the improvement in our business that they are
delivering, and express how excited everyone at Sysco is for the year ahead,”
said Kevin Hourican, Sysco’s Chair of the Board and Chief Executive Officer.
“Our teams delivered 2.7% local growth in our U.S. segment and grew adjusted
operating income across our USFS and International segments. Our company
specific initiatives kept us focused on the elements of performance within our
control within a choppy operating environment. Looking ahead, we remain
confident in our net cost savings targets enabled by AI technology which include
our expectation for $100 million in savings included in our FY27 guidance, with
benefits accelerating in the second half. We remain confident in delivering on
our adjusted EPS growth guidance of 9%-11%, reflecting unchanged local volume
growth assumptions of approximately 2.5%, while full year sales
1 Adjusted financial results, including adjusted operating expense, adjusted
operating income (loss), adjusted net earnings, adjusted earnings per share
(EPS) and adjusted EBITDA, among others, are non-GAAP financial measures that
exclude certain items, which primarily include acquisition-related costs,
restructuring and severance costs, and transformational project costs.
Reconciliations of all non-GAAP financial measures to the nearest corresponding
GAAP financial measure are included at the end of this release.
2 Earnings before interest, taxes, depreciation and amortization (EBITDA) and
adjusted EBITDA are non-GAAP financial measures. Reconciliations of all non-GAAP
financial measures to the nearest corresponding GAAP financial measure are
included at the end of this release.
3 Earnings per share (EPS) are shown on a diluted basis, unless otherwise
specified.
1
growth is now expected to be at the lower end of our 6%-7% range, reflecting a
lower inflation environment for the industry,” said Brandon Sewell, Sysco’s
Chief Financial Officer.
First Quarter Fiscal Year 2027 Results
(comparisons are to the same period in fiscal year 2026)
Total Sysco
Sales for the first quarter increased 2.8% to $21.7 billion.
Gross profit increased 3.8% to $4.1 billion, and gross margin increased 18 basis
points to 18.6%. Product cost inflation was 0.3% at the total enterprise level,
as measured by the estimated change in Sysco’s product costs, primarily in the
meat category. The increase in gross profit for the first quarter was primarily
driven by growth from local volumes, benefits associated with tariffs, strategic
sourcing efficiencies, and Sysco Brand penetration.
Operating expenses increased 7.5%, driven by acquisition-related costs, higher
volumes, and investments in higher growth areas of the business. Adjusted
operating expenses increased 4.0% 1 .
Operating income decreased 10.4% to $717 million, driven by acquisition costs
related to Jetro Restaurant Depot. Adjusted operating income increased 3.2% to
$927 million 1 .
U.S. Foodservice Operations
The U.S. Foodservice Operations segment results were driven by balanced volume
growth, positive Sysco Brand penetration rates, effective margin management, and
benefits associated with tariffs.
Sales for the first quarter increased 2.4% to $15.1 billion. Total case volume
within U.S. Foodservice increased 2.6% for the first quarter, and local case
volume within U.S. Foodservice increased 2.7%.
Gross profit increased 3.2% to $2.9 billion, and gross margin increased 14 basis
points to 19.2%.
Operating expenses increased 3.9%, and adjusted operating expenses increased
3.4% 1 .
Operating income increased 1.6% to $894 million, and adjusted operating income
increased 2.7% to $941 million 1 .
International Foodservice Operations
The International Foodservice Operations segment continued to deliver strong
top-line growth, including local volume growth, expanded margins, and double-
digit adjusted profit growth.
Sales for the first quarter increased 5.1% to $4.2 billion. On a constant
currency basis 4 , sales for the first quarter increased 6.0% to $4.2 billion.
Foreign exchange rates decreased both International Foodservice Operations sales
by 0.9% and total Sysco sales by 0.2% during the quarter.
Gross profit increased 7.4% to $887 million, and gross margin increased 45 basis
points to 21.3%. On a constant currency basis 4 , gross profit increased 8.1% to
$893 million. Foreign exchange rates decreased both International Foodservice
Operations gross profit by 0.7% and total Sysco gross profit by 0.2% during the
quarter.
Operating expenses increased 13.1%, and adjusted operating expenses increased
6.3% 1 . On a constant currency basis 4 , adjusted operating expenses increased
7.1%. Foreign exchange rates decreased both International Foodservice Operations
operating expenses by 0.8% and total Sysco operating expenses by 0.2% during the
quarter.
4 Represents a constant currency adjustment, which eliminates the impact of
foreign currency fluctuations on current year results. These adjusted measures
are non-GAAP financial measures. Reconciliations of all non-GAAP financial
measures to the nearest corresponding GAAP financial measure are included at the
end of this release.
2
Operating income decreased 28.1% to $82 million, and adjusted operating income
increased 12.2% to $165 million 1 . On a constant currency basis 4 , adjusted
operating income increased 12.9% to $166 million. Foreign exchange rates
decreased International Foodservice Operations operating income by 0.7% and had
a negligible impact on total Sysco operating income during the quarter.
Balance Sheet, Cash Flow and Capital Spending
As of the end of the quarter, the company had a cash balance of $3.2 billion and
total liquidity of $5.8 billion.
Debt to net earnings was approximately 7.7 times, and Net Debt to adjusted
EBITDA 5 was approximately 2.4 times.
During the first 13 weeks of fiscal year 2027, Sysco returned $264 million to
shareholders via dividends.
Cash flow from operations was $278 million and free cash flow 6 was $230 million
for the first 13 weeks of fiscal year 2027.
Capital expenditures, net of proceeds from sales of plant and equipment, for the
first 13 weeks of fiscal year 2027 were $48 million.
5 Net debt to adjusted EBITDA is a non-GAAP financial measure frequently used by
investors and credit rating agencies. Our net debt to adjusted EBITDA ratio is
calculated using a numerator of our debt minus cash and cash equivalents,
divided by the sum of the most recent four quarters of adjusted EBITDA.
Reconciliations of all non-GAAP financial measures to the nearest corresponding
GAAP financial measure are included at the end of this release.
6 Free cash flow is a non-GAAP financial measure that represents net cash
provided from operating activities less purchases of plant and equipment and
includes proceeds from sales of plant and equipment. Reconciliations of all non-
GAAP financial measures to the nearest corresponding GAAP financial measure are
included at the end of this release.
3
Conference Call & Webcast
Sysco will host a conference call to review the company’s first quarter fiscal
year 2027 financial results on Tuesday, November 3, 2026, at 10:00 a.m. Eastern
Time. A live webcast of the call, accompanying slide presentation and a copy of
this news release will be available online at investors.sysco.com .
Key Highlights:
Financial 13-Week Period Ended
Comparison: September 26, 2026 September 27, 2025 Change
──────────────────────────────────────────────────────────────────────────────
GAAP:
Sales $21.7 billion $21.1 billion 2.8%
Gross Profit $4.1 billion $3.9 billion 3.8%
Gross Margin 18.6% 18.5% 18 bps
Operating Expenses $3.3 billion $3.1 billion 7.5%
Operating Income $717 million $800 million -10.4%
Operating Margin 3.3% 3.8% -48 bps
Net Earnings $526 million $476 million 10.5%
Diluted Earnings $1.09 $0.99 10.1%
Per Share
Non-GAAP(1):
Adjusted Operating $3.1 billion $3.0 billion 4.0%
Expenses
Adjusted Operating $927 million $898 million 3.2%
Income
Adjusted Operating 4.3% 4.3% 1 bp
Margin
EBITDA $1.2 billion $1.0 billion 20.4%
Adjusted EBITDA $1.1 billion $1.1 billion 5.4%
Adjusted Net $574 million $551 million 4.2%
Earnings
Adjusted Diluted
Earnings Per $1.19 $1.15 3.5%
Share(2)
Case Growth:
U.S. Foodservice 2.6% 0.1%
Local 2.7% -0.2%
Sysco Brand Sales
as a % of Cases(3):
U.S. Broadline 35.8% 35.7% 8 bps
Local 46.6% 46.2% 44 bps
Note:
(1)Reconciliations
of all non-GAAP
financial measures
to the nearest
respective GAAP
financial measures
are
included at the end
of this release.
(2)Individual
components in the
table
above may not sum
to the totals due
to
the rounding.
(3)Amounts reflect
the impact of
current
customer
classifications;
prior period
history has been
reclassified to
match
the current period
customer
classification.
4
Forward-Looking Statements
Statements made in this press release or in our earnings call for the first
quarter of fiscal year 2027 that look forward in time or that express
management’s beliefs, expectations or hopes are forward-looking statements under
the Private Securities Litigation Reform Act of 1995. These statements concern,
among other things, our future financial performance and results, business
strategy, plans, goals and objectives, including certain outlook, business
trends, our dividend and share repurchase programs, our expectation of future
macroeconomic conditions and other statements that are not historical facts,
including our expectations regarding foot traffic and volume growth and benefits
to gross margins; our expectations regarding our future growth, including growth
in sales and earnings per share; and our expectations regarding cost savings
associated with AI, as well as statements about the expected timing and
completion of the proposed transaction with Jetro Restaurant Depot and the
anticipated benefits of such proposed transaction, including estimated
synergies, and plans, impact on Sysco and expectations for Sysco after
completion of the proposed transaction.
Such forward-looking statements reflect the views of management at the time such
statements are made and are subject to a number of risks, uncertainties,
estimates, and assumptions, including those outside of Sysco’s control. Risks
and uncertainties include without limitation: the impact of geopolitical,
economic and market conditions and developments, including changes in global
trade policies and tariffs and foreign conflicts; risks related to our business
initiatives; periods of significant or prolonged inflation or deflation and
their impact on our product costs, volume, foot traffic, and profitability
generally; risks related to our efforts to implement our transformation
initiatives and meet our other long-term strategic objectives; risk of
interruption of supplies and increase in product costs; risks related to changes
in consumer eating habits; and impact of natural disasters or adverse weather
conditions, public health crises, adverse publicity or lack of confidence in our
products, and product liability claims as well as risks and uncertainties
associated with our proposed transaction with Jetro Restaurant Depot, including
but not limited to, the occurrence of any event, change or other circumstances
that could give rise to the right of either or both parties to terminate the
merger agreement; the risk that regulatory approvals may not be obtained or
other closing conditions may not be satisfied in a timely manner or at all, as
well as the risk that regulatory approvals are obtained subject to conditions
that are not anticipated; the risk of other delays in closing the transaction;
the possibility that any of the anticipated benefits and projected synergies of
the transaction will not be realized or will not be realized within the expected
time period; and the risk that the proposed transaction and its announcement
could have an adverse effect on the market price of the common stock of Sysco.
Should one or more of these risks or uncertainties materialize, or underlying
assumptions prove incorrect, actual results may vary materially from those
indicated in our forward-looking statements. Therefore, you should not place
undue reliance on any of the forward-looking statements contained herein. For
more information on these risks and other concerning factors that could cause
actual results to differ from those expressed or forecasted, see our Annual
Reports on Form 10-K, Quarterly Reports on Form 10-Q, and other filings with the
SEC. We do not undertake to update our forward-looking statements, except as
required by applicable law.
5
About Sysco
Sysco is the global leader in selling, marketing and distributing food and
related products to customers who prepare meals away from home. This includes
restaurants, healthcare and educational facilities, lodging establishments,
entertainment venues, and more. Sysco operates 333 distribution centers, in 10
countries, with 75,000 colleagues serving approximately 670,000 customer
locations. The company generated sales of more than $84 billion in fiscal year
2026 that ended June 27, 2026.
As the world’s largest food-away-from-home distributor, Sysco offers customized
supply chain solutions, bespoke specialty product offerings, and culinary
support to drive customers to innovate and optimize their operations. We act as
a trusted business partner to our customers, helping them grow through our
industry-leading portfolio that includes fresh produce, premium proteins,
specialty products, sustainably focused items, equipment and supplies, and
innovative culinary solutions.
For more information, visit www.sysco.com . For important news and key
information for Sysco investors, visit the Investor Relations section of the
company’s website at investors.sysco.com .
SYY-INVESTORS
6
Sysco Corporation and
its Consolidated
Subsidiaries
CONSOLIDATED RESULTS OF
OPERATIONS (Unaudited)
(In Millions, Except
for Share and Per Share 13-Week Period
Data) Ended Sep. 26, 2026 Sep. 27, 2025
──────────────────────────────────────────────────────────────────────────────
Sales $ 21,744 $ 21,148
Cost of sales 17,693 17,247
Gross profit 4,051 3,901
Operating expenses 3,334 3,101
Operating income 717 800
Interest expense 261 172
Other expense (income), -231 28
net(1)
Earnings before income 687 600
taxes
Income taxes 161 124
Net earnings $ 526 $ 476
Net earnings:
Basic earnings per $ 1.09 $ 0.99
share
Diluted earnings per 1.09 0.99
share
Average shares 481,341,826 478,761,180
outstanding
Diluted shares 482,945,241 480,365,666
outstanding
(1)Sysco’s first
quarter of fiscal 2027
included a gain of $234
million in other
income related to deal
contingent rate
lock transactions
entered into to
mitigate interest rate
risk on permanent
debt issued to finance
the purchase of
JRD Unico, Inc. and
Warehouse Realty,
LLC (collectively,
Jetro Restaurant
Depot or JRD).
7
Sysco Corporation and
its Consolidated
Subsidiaries
CONSOLIDATED BALANCE
SHEETS
(In Millions, Except for
Share Data) Sep. 26, 2026 Jun. 27, 2026
──────────────────────────────────────────────────────────────────────────────
-Unaudited
ASSETS
Current assets
Cash and cash $ 3,171 $ 1,786
equivalents
Accounts receivable,
less allowances of 6,296 5,865
$38 and $13
Inventories 5,455 5,338
Prepaid expenses and
other current 484 427
assets
Income tax receivable 6 21
Total current assets 15,412 13,437
Plant and equipment at
cost, less 5,886 5,974
accumulated depreciation
Other long-term assets
Goodwill 5,231 5,225
Intangibles, less 899 952
amortization
Deferred income taxes 525 506
Operating lease 1,452 1,389
right-of-use assets, net
Other assets 1,043 914
Total other long-term 9,150 8,986
assets
Total assets $ 30,448 $ 28,397
LIABILITIES AND
SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable $ 6,736 $ 6,640
Accrued expenses 2,473 2,456
Accrued income taxes 186 60
Current operating lease 170 166
liabilities
Current maturities of 960 1,201
long-term debt
Total current 10,525 10,523
liabilities
Long-term liabilities
Long-term debt 12,860 12,315
Deferred income taxes 486 456
Long-term operating 1,349 1,285
lease liabilities
Other long-term 1,186 1,152
liabilities
Total long-term 15,881 15,208
liabilities
Shareholders’ equity
Preferred stock, par
value $1 per share — —
Authorized 1,500,000
shares, issued none
Common stock, par value
$1 per share
Authorized 2,000,000,000 778 765
shares, issued
777,520,579 and
765,174,900 shares
Paid-in capital 3,077 2,114
Retained earnings 14,002 13,748
Accumulated other -906 -1,014
comprehensive loss
Treasury stock at cost,
285,593,166 and -12,909 -12,947
286,631,270 shares
Total shareholders’ 4,042 2,666
equity
Total liabilities and
shareholders’ $ 30,448 $ 28,397
equity
8
Sysco Corporation and
its Consolidated
Subsidiaries
CONSOLIDATED CASH FLOWS
(Unaudited) 13-Week Period
(In Millions) Ended Sep. 26, 2026 Sep. 27, 2025
──────────────────────────────────────────────────────────────────────────────
Cash flows from
operating activities:
Net earnings $ 526 $ 476
Adjustments to
reconcile net earnings
to
cash provided by
operating activities:
Share-based 28 31
compensation expense
Depreciation and 262 233
amortization
Operating lease asset 41 37
amortization
Amortization of debt
issuance and other 94 4
debt-related costs
Deferred income taxes 21 -5
Provision for losses on 24 30
receivables
Gain on deal contingent
rate lock -234 —
transactions
Other non-cash items -23 8
Additional changes in
certain assets and
liabilities, net of
effect of businesses
acquired:
Increase in receivables -280 -349
Increase in inventories -115 -335
Increase in prepaid
expenses and other -86 -42
current assets
Increase in accounts 70 82
payable
Decrease in accrued -132 -83
expenses
Decrease in operating -56 -49
lease liabilities
Increase in accrued 141 66
income taxes
Decrease (increase) in 2 -11
other assets
Decrease in other -5 -7
long-term liabilities
Net cash provided by
operating 278 86
activities
Cash flows from
investing activities:
Additions to plant and -97 -160
equipment
Proceeds from sales of
plant and 49 24
equipment
Purchase of marketable -135 —
securities
Proceeds from sales of
marketable 10 7
securities
Other investing — 22
activities
Net cash used for -173 -107
investing activities
Cash flows from
financing activities:
Bank and commercial
paper borrowings, 379 76
net
Other debt borrowings
including senior 1,067 2
notes
Other debt repayments
including senior -1,045 -42
notes
Debt issuance costs -47 -3
Proceeds from
termination of interest 70 —
rate swap agreements
Proceeds from stock 37 43
option exercises
Proceeds from common 1,000 —
stock issuances
Stock issuance costs -33 —
Dividends paid -264 -259
Other financing -14 -12
activities
Net cash provided by
(used for) 1,150 -195
financing activities
Effect of exchange
rates on cash, cash -3 -6
equivalents and
restricted cash
Net increase (decrease)
in cash, cash 1,252 -222
equivalents and
restricted cash
Cash, cash equivalents
and restricted 2,117 1,349
cash at beginning of
period
9
Cash, cash equivalents and restricted $ 3,369 $ 1,127
cash at end of period
Supplemental disclosures of cash flow
information:
Cash paid during the period for:
Interest $ 200 $ 178
Income taxes, net of refunds 39 31
10
Sysco Corporation and its Consolidated Subsidiaries
Non-GAAP Reconciliation (Unaudited)
Impact of Certain Items
The discussion of our results includes certain non-GAAP financial measures,
including EBITDA and adjusted EBITDA, that we believe provide important
perspective with respect to underlying business trends. Other than EBITDA
and free cash flow, any non-GAAP financial measures will be denoted as
adjusted measures to remove (1) restructuring charges; (2) expenses
associated with our various transformation initiatives; (3) severance
charges; and (4) acquisition-related costs consisting of: (a) intangible
amortization expense and (b) acquisition costs and due diligence costs
related to our acquisitions. Adjustments provided herein for fiscal 2027
results of operations also remove amortization expense associated with debt
issuance costs on a bridge loan facility and a gain on deal contingent rate
lock transactions entered into to mitigate interest rate risk on permanent
debt issued to finance the JRD Acquisition Transactions. No similar charges
were applicable in the first quarter of fiscal 2026.
The results of our operations can be impacted due to changes in exchange
rates applicable in converting local currencies to U.S. dollars. We measure
our results on a constant currency basis. Constant currency operating
results are calculated by translating current-period local currency
operating results with the currency exchange rates used to translate the
financial statements in the comparable prior-year period to determine what
the current-period U.S. dollar operating results would have been if the
currency exchange rate had not changed from the comparable prior-year
period.
──────────────────────────────────────────────────────────────────────────────
Management believes that adjusting its operating
expenses, operating income, operating margin,
interest expense, other (income) expense, net
earnings and diluted earnings per share to remove
these Certain Items, presenting its results on a
constant currency basis, provides an important
perspective with respect to our underlying
business trends and results. It provides
meaningful supplemental information to both
management and investors that (1) is indicative of
the performance of the company’s underlying
operations and (2) facilitates comparisons on a
year-over-year basis.
Sysco has a history of growth through acquisitions
and excludes from its non-GAAP financial measures
the impact of acquisition-related intangible
amortization, acquisition costs and due-diligence
costs for those acquisitions. We believe this
approach significantly enhances the comparability
of Sysco’s results for fiscal 2027 and fiscal
2026.
Set forth on the following page is a
reconciliation of sales, operating expenses,
operating income, interest expense, other (income)
expense, net earnings and diluted earnings per
share to adjusted results for these measures for
the periods presented. Individual components of
diluted earnings per share may not be equal to the
total presented when added due to rounding.
Adjusted diluted earnings per share is calculated
using adjusted net earnings divided by diluted
shares outstanding. The non-GAAP financial
measures shown in the following tables should not
be used as a substitute for the most comparable
GAAP financial measures in assessing the company’s
financial performance for the periods presented.
An analysis of any non-GAAP financial measure
should be used in conjunction with results
presented in accordance with GAAP.
11
Sysco
Corpo…
and
its
Conso…
Subsi…
Non-G…
Recon…
(Unau…
Impact
of
Certa…
Items
(Doll…
in
Milli…
Except
for 13-Week 13-Week
Share Period Period
and Ended Ended
Per Sep. Sep. Change
Share 26, 27, in %/bps
Data) 2026 2025 Dollars Change
──────────────────────────────────────────────────────────────────────────────
Sales $ 21,744 $ 21,148 $ 596 2.8 %
(GAAP)
Impact
of 35 35 0.2
curre…
fluct…
Compa…
sales
using
a $ 21,779 $ 21,148 $ 631 3.0 %
const…
curre…
basis
(Non-…
Gross
profit $ 4,051 $ 3,901 $ 150 3.8 %
(GAAP)
Impact
of 6 6 0.2
curre…
fluct…
Compa…
gross
profit
adjus…
for
Certa…
Items $ 4,057 $ 3,901 $ 156 4.0 %
using
a
const…
curre…
basis
(Non-…
Gross
margin 18.63 % 18.45 % 18 bps
(GAAP)
Impact
of — 0 bps
curre…
fluct…
Compa…
gross
margin
adjus…
for
Certa…
Items 18.63 % 18.45 % 18 bps
using
a
const…
curre…
basis
(Non-…
Opera…
expen… $ 3,334 $ 3,101 $ 233 7.5 %
(GAAP)
Impact
of
restr…
trans… -102 -56 -46 -82.1
proje…
and
other
costs…
Impact
of -108 -42 -66 NM
acqui…
costs…
Opera…
expen…
adjus…
for 3,124 3,003 121 4.0
Certa…
Items
(Non-…
Impact
of 6 6 0.2
curre…
fluct…
Compa…
opera…
expen…
adjus…
for
Certa…
Items $ 3,130 $ 3,003 $ 127 4.2 %
using
a
const…
curre…
basis
(Non-…
Opera…
expen…
as a
perce… 15.33 % 14.66 % 67 bps
of
sales
(GAAP)
Impact
of
certa… -0.96 -0.46 -50 bps
item
adjus…
Adjus…
opera…
expen…
as a 14.37 % 14.20 % 17 bps
perce…
of
sales
(Non-…
Opera…
income $ 717 $ 800 $ -83 -10.4 %
(GAAP)
Impact
of
restr…
trans… 102 56 46 82.1
proje…
and
other
costs…
Impact
of 108 42 66 NM
acqui…
costs…
Opera…
income
adjus…
for 927 898 29 3.2
Certa…
Items
(Non-…
Impact
of — — —
curre…
fluct…
Compa…
opera…
income
adjus…
for
Certa…
Items $ 927 $ 898 $ 29 3.2 %
using
a
const…
curre…
basis
(Non-…
Opera…
margin 3.30 % 3.78 % -48 bps
(GAAP)
Opera…
margin
adjus…
for 4.26 % 4.25 % 1 bp
Certa…
Items
(Non-…
Opera…
margin
adjus…
for
Certa…
Items 4.26 % 4.25 % 1 bp
using
a
const…
curre…
basis
(Non-…
Inter…
expen… $ 261 $ 172 $ 89 51.7 %
(GAAP)
Impact
of
bridge -90 — -90 NM
loan
amort…
Inter…
expen…
adjus…
for $ 171 $ 172 $ -1 -0.6 %
Certa…
Items
(Non-…
Other
(inco… $ -231 $ 28 $ -259 NM
expen…
(GAAP)
Impact
of
deal
conti…
rate
lock
trans…
and
other
items 237 — 237 NM
assoc…
with
the
plann…
acqui…
of
Jetro
Resta…
Depot…
Other
expen…
adjus…
for $ 6 $ 28 $ -22 -78.6 %
Certa…
Items
(Non-…
Net
earni… $ 526 $ 476 $ 50 10.5 %
(GAAP)
Impact
of
restr…
trans… 102 56 46 82.1
proje…
and
other
costs…
12
Impact of
acquisition-re… 108 42 66 NM
costs(3)
Impact of
bridge loan 90 — 90 NM
amortization(4)
Impact of deal
contingent rate
lock
transactions
and other items
associated -237 — -237 NM
with the
planned
acquisition of
Jetro
Restaurant
Depot(4)
Tax impact of
restructuring,
transformation… -24 -13 -11 -84.6
project, and
other
costs(5)
Tax impact of
acquisition-re… -26 -10 -16 NM
costs(5)
Tax impact of
bridge loan -22 — -22 NM
amortization(5)
Tax impact of
deal contingent
rate lock
transactions
and other items
associated 57 — 57 NM
with the
planned
acquisition of
Jetro
Restaurant
Depot(5)
Net earnings
adjusted for $ 574 $ 551 $ 23 4.2 %
Certain Items
(Non-GAAP)
Diluted
earnings per $ 1.09 $ 0.99 $ 0.10 10.1 %
share (GAAP)
Impact of
restructuring,
transformation… 0.21 0.12 0.09 75.0
project, and
other
costs(2)
Impact of
acquisition-re… 0.22 0.09 0.13 NM
costs(3)
Impact of
bridge loan 0.19 — 0.19 NM
amortization(4)
Impact of deal
contingent rate
lock
transactions
and other items
associated -0.49 — -0.49 NM
with the
planned
acquisition of
Jetro
Restaurant
Depot(4)
Tax impact of
restructuring,
transformation… -0.05 -0.03 -0.02 -66.7
project, and
other
costs(5)
Tax impact of
acquisition-re… -0.05 -0.02 -0.03 NM
costs(5)
Tax impact of
bridge loan -0.05 — -0.05 NM
amortization(5)
Tax impact of
deal contingent
rate lock
transactions
and other items
associated 0.12 — 0.12 NM
with the
planned
acquisition of
Jetro
Restaurant
Depot(5)
Diluted
earnings per
share adjusted $ 1.19 $ 1.15 $ 0.04 3.5 %
for
Certain Items
(Non-GAAP)(6)
Diluted shares 482,945,241 480,365,666
outstanding
(1) Represents a constant currency adjustment, which eliminates the
impact of foreign currency fluctuations on the current year results.
Fiscal 2027 includes $80 million related to various transformation
initiative costs, primarily consisting of supply chain transformation
costs and changes to our business technology strategy, and $22
(2) million related to restructuring and severance charges. Fiscal 2026
includes $46 million related to various transformation initiative
costs, primarily consisting of supply chain transformation costs and
changes to our business technology strategy, and $10 million related
to restructuring and severance charges.
Fiscal 2027 includes $56 million in acquisition and due diligence
(3) costs and $52 million of intangible amortization expense. Fiscal 2026
includes $31 million of intangible amortization expense and $11
million in acquisition and due diligence costs.
Fiscal 2027 primarily includes $90 million of amortization expense
associated with debt issuance costs on a bridge loan facility and a
(4) gain of $234 million on deal contingent rate lock transactions, both
of which are related to the planned acquisition of Jetro Restaurant
Depot.
The tax impact of adjustments for Certain Items is calculated by
(5) multiplying the pretax impact of each Certain Item by the statutory
rates in effect for each jurisdiction where the Certain Item was
incurred.
Individual components of diluted earnings per share may not equal the
(6) total presented when added due to rounding. Total diluted earnings
per share is calculated using adjusted net earnings divided by
diluted shares outstanding.
NM Represents that the percentage change is not meaningful.
13
Sysco
Corpo…
and
its
Conso…
Subsi…
Segme…
Resul…
Non-G…
Recon…
(Unau…
Impact
of
Certa…
Items
on 13-Week 13-Week
Appli… Period Period
Segme… Ended Ended
(Doll… Sep. Sep. Change
in 26, 27, in %/bps
Milli… 2026 2025 Dollars Change
──────────────────────────────────────────────────────────────────────────────
U.S.
FOODS…
OPERA…
Sales $ 15,142 $ 14,780 $ 362 2.4 %
(GAAP)
Gross
profit 2,913 2,823 90 3.2 %
(GAAP)
Gross
margin 19.24 % 19.10 % 14 bps
(GAAP)
Opera…
expen… $ 2,019 $ 1,943 $ 76 3.9 %
(GAAP)
Impact
of
restr…
trans… -28 -7 -21 NM
proje…
and
other
costs…
Impact
of -19 -29 10 34.5
acqui…
costs…
Opera…
expen…
adjus…
for $ 1,972 $ 1,907 $ 65 3.4 %
Certa…
Items
(Non-…
Opera…
income $ 894 $ 880 $ 14 1.6 %
(GAAP)
Impact
of
restr…
trans… 28 7 21 NM
proje…
and
other
costs…
Impact
of 19 29 -10 -34.5
acqui…
costs…
Opera…
income
adjus…
for $ 941 $ 916 $ 25 2.7 %
Certa…
Items
(Non-…
INTER…
FOODS…
OPERA…
Sales $ 4,168 $ 3,966 $ 202 5.1 %
(GAAP)
Impact
of 34 34 0.9
curre…
fluct…
Compa…
sales
using
a $ 4,202 $ 3,966 $ 236 6.0 %
const…
curre…
basis
(Non-…
Gross
profit $ 887 $ 826 $ 61 7.4 %
(GAAP)
Impact
of 6 6 0.7
curre…
fluct…
Compa…
gross
profit
using
a $ 893 $ 826 $ 67 8.1 %
const…
curre…
basis
(Non-…
Gross
margin 21.28 % 20.83 % 45 bps
(GAAP)
Impact
of -0.03 -3 bps
curre…
fluct…
Compa…
gross
margin
using
a 21.25 % 20.83 % 42 bps
const…
curre…
basis
(Non-…
Opera…
expen… $ 805 $ 712 $ 93 13.1 %
(GAAP)
Impact
of
restr…
and -47 -23 -24 NM
trans…
proje…
costs…
Impact
of -36 -10 -26 NM
acqui…
costs…
Opera…
expen…
adjus…
for 722 679 43 6.3
Certa…
Items
(Non-…
Impact
of 5 5 0.8
curre…
fluct…
Compa…
opera…
expen…
adjus…
for
Certa…
Items $ 727 $ 679 $ 48 7.1 %
using
a
const…
curre…
basis
(Non-…
Opera…
income $ 82 $ 114 $ -32 -28.1 %
(GAAP)
Impact
of
restr…
and 47 23 24 NM
trans…
proje…
costs…
Impact
of 36 10 26 NM
acqui…
costs…
Opera…
income
adjus…
for 165 147 18 12.2
Certa…
Items
(Non-…
Impact
of 1 1 0.7
curre…
fluct…
Compa…
opera…
income
adjus…
for
Certa…
Items $ 166 $ 147 $ 19 12.9 %
using
a
const…
curre…
basis
(Non-…
SYGMA
Sales $ 2,152 $ 2,129 $ 23 1.1 %
(GAAP)
Gross
profit 167 170 -3 -1.8 %
(GAAP)
Gross
margin 7.76 % 7.98 % -22 bps
(GAAP)
14
Operating $ 146 $ 145 $ 1 0.7 %
expenses (GAAP)
Operating income 21 25 -4 -16.0 %
(GAAP)
OTHER
Sales (GAAP) $ 282 $ 273 $ 9 3.3 %
Gross profit 75 68 7 10.3 %
(GAAP)
Gross margin 26.60 % 24.91 % 169 bps
(GAAP)
Operating $ 66 $ 64 $ 2 3.1 %
expenses (GAAP)
Operating income 9 4 5 NM
(GAAP)
GLOBAL SUPPORT
CENTER
Gross profit $ 9 $ 14 $ -5 -35.7 %
(GAAP)
Operating $ 298 $ 237 $ 61 25.7 %
expenses (GAAP)
Impact of
restructuring
and -27 -26 -1 -3.8
transformational
project costs(5)
Impact of
acquisition-rel… -53 -3 -50 NM
costs(6)
Operating
expenses
adjusted for $ 218 $ 208 $ 10 4.8 %
Certain
Items (Non-GAAP)
Operating loss $ -289 $ -223 $ -66 -29.6 %
(GAAP)
Impact of
restructuring
and 27 26 1 3.8
transformational
project costs(5)
Impact of
acquisition-rel… 53 3 50 NM
costs(6)
Operating loss
adjusted for $ -209 $ -194 $ -15 -7.7 %
Certain
Items (Non-GAAP)
TOTAL SYSCO
Sales (GAAP) $ 21,744 $ 21,148 $ 596 2.8 %
Gross profit 4,051 3,901 150 3.8 %
(GAAP)
Gross margin 18.63 % 18.45 % 18 bps
(GAAP)
Operating $ 3,334 $ 3,101 $ 233 7.5 %
expenses (GAAP)
Impact of
restructuring,
transformational -102 -56 -46 -82.1
project, and
other
costs(1) (4) (5)
Impact of
acquisition-rel… -108 -42 -66 NM
costs(2)
(6)
Operating
expenses
adjusted for $ 3,124 $ 3,003 $ 121 4.0 %
Certain
Items (Non-GAAP)
Operating income $ 717 $ 800 $ -83 -10.4 %
(GAAP)
Impact of
restructuring,
transformational 102 56 46 82.1
project, and
other
costs(1) (4) (5)
Impact of
acquisition-rel… 108 42 66 NM
costs(2)
(6)
Operating income
adjusted for $ 927 $ 898 $ 29 3.2 %
Certain
Items (Non-GAAP)
(1) Primarily represents severance charges and transformation initiative
costs.
(2) Fiscal 2027 and fiscal 2026 include intangible amortization expense
and acquisition costs.
(3) Represents a constant currency adjustment, which eliminates the
impact of foreign currency fluctuations on current year results.
(4) Includes restructuring and transformation initiative costs primarily
in Europe.
(5) Includes various transformation initiative costs, primarily
consisting of changes to our business technology strategy.
(6) Represents acquisition and due diligence costs.
NM Represents that the percentage change is not meaningful.
15
Sysco Corporation and its Consolidated Subsidiaries
Non-GAAP Reconciliation (Unaudited)
Free Cash Flow
(In Millions)
Free cash flow represents net cash provided from operating activities less
purchases of plant and equipment and includes proceeds from sales of plant and
equipment. Sysco considers free cash flow to be a liquidity measure that
provides useful information to management and investors about the amount of cash
generated by the business after the purchases and sales of buildings, fleet,
equipment and technology, which may potentially be used to pay for, among other
things, strategic uses of cash including dividend payments, share repurchases
and acquisitions. However, free cash flow may not be available for discretionary
expenditures, as it may be necessary that we use it to make mandatory debt
service or other payments. Free cash flow should not be used as a substitute for
the most comparable GAAP financial measure in assessing the company’s liquidity
for the periods presented. An analysis of any non-GAAP financial measure should
be used in conjunction with results presented in accordance with GAAP. In the
table that follows, free cash flow for each period presented is reconciled to
net cash provided by operating activities.
13-Week Period 13-Week Period 13-Week Period
Ended Ended Change in
Sep. 26, 2026 Sep. 27, 2025 Dollars
──────────────────────────────────────────────────────────────────────────────
Net cash
provided by
operating $ 278 $ 86 $ 192
activities
(GAAP)
Additions to
plant and -97 -160 63
equipment
Proceeds from
sales of 49 24 25
plant and
equipment
Free Cash
Flow $ 230 $ -50 $ 280
(Non-GAAP)
16
Sysco Corporation and its Consolidated Subsidiaries
Non-GAAP Reconciliation (Unaudited)
Impact of Certain Items on Earnings Before Interest, Taxes, Depreciation and
Amortization (EBITDA)
(Dollars in Millions)
EBITDA represents net earnings (loss) plus (i) interest expense, (ii) income tax
expense and benefit, (iii) depreciation and (iv) amortization. The net earnings
(loss) component of our EBITDA calculation is impacted by Certain Items that we
do not consider representative of our underlying performance. As a result, in
the non-GAAP reconciliations below for each period presented, adjusted EBITDA is
computed as EBITDA plus the impact of Certain Items, excluding certain items
related to interest expense, income taxes, depreciation and amortization.
Sysco's management considers growth in this metric to be a measure of overall
financial performance that provides useful information to management and
investors about the profitability of the business, as it facilitates comparison
of performance on a consistent basis from period to period by providing a
measurement of recurring factors and trends affecting our business.
Additionally, it is a commonly used component metric used to inform on capital
structure decisions. Adjusted EBITDA should not be used as a substitute for the
most comparable GAAP financial measure in assessing the company’s financial
performance for the periods presented. An analysis of any non-GAAP financial
measure should be used in conjunction with results presented in accordance with
GAAP. In the tables that follow, adjusted EBITDA for each period presented is
reconciled to net earnings.
13-Week 13-Week
Period Period
Ended Ended
Sep. 26, Sep. 27, Change in
2026 2025 Dollars % Change
──────────────────────────────────────────────────────────────────────────────
Net
earnings $ 526 $ 476 $ 50 10.5 %
(GAAP)
Interest 261 172 89 51.7
(GAAP)
Income
taxes 161 124 37 29.8
(GAAP)
Depreci…
and 262 233 29 12.4
amortiz…
(GAAP)
EBITDA $ 1,210 $ 1,005 $ 205 20.4 %
(Non-GA…
Certain
Item
adjustm…
Impact
of
restruc…
transfo… 98 54 44 81.5
project,
and
other
costs(1)
Impact
of 57 11 46 NM
acquisi…
costs(2)
Impact
of deal
conting…
rate
lock
transac…
and
other -237 — -237 NM
items
associa…
with the
planned
acquisi…
of Jetro
Restaur…
Depot(3)
EBITDA
adjusted
for $ 1,128 $ 1,070 $ 58 5.4 %
Certain
Items
(Non-GA…
Other
expense
(income… 6 28 -22 -78.6
net, as
adjusted
(Non-GA…
Depreci…
and
amortiz… -207 -200 -7 -3.5
as
adjusted
(Non-GA…
Operati…
income
adjusted
for $ 927 $ 898 $ 29 3.2 %
Certain
Items
(Non-GA…
Fiscal 2027 and fiscal 2026 include charges related to restructuring
and severance, as well as various transformation initiative costs,
(1) primarily consisting of supply chain transformation costs and changes
to our business technology strategy, excluding charges related to
accelerated depreciation.
(2) Fiscal 2027 and fiscal 2026 include acquisition and due diligence
costs.
Fiscal 2027 primarily includes a gain on deal contingent rate lock
(3) transactions related to the planned acquisition of Jetro Restaurant
Depot.
In arriving at adjusted EBITDA, Sysco does not exclude interest
(4) income of $7 million and $6 million or non-cash stock compensation
expense of $28 million and $31 million in fiscal 2027 and fiscal
2026, respectively.
Fiscal 2027 represents $231 million in GAAP other expense (income),
net less $237 million in income primarily from a gain on deal
(5) contingent rate lock transactions entered into to mitigate interest
rate risk on permanent debt issued to finance the purchase of Jetro
Restaurant Depot. Fiscal 2026 represents $28 million in GAAP other
expense (income), net.
Fiscal 2027 includes $262 million in GAAP depreciation and
amortization expense, less $55 million of Non-GAAP depreciation and
(6) amortization expense primarily related to acquisitions. Fiscal 2026
includes $233 million in GAAP depreciation and amortization expense,
less $33 million of Non-GAAP depreciation and amortization expense
primarily related to acquisitions.
NM Represents that the percentage change is not meaningful.
17
Sysco Corporation and its Consolidated Subsidiaries
Non-GAAP Reconciliation (Unaudited)
Net Debt to Adjusted EBITDA
(In Millions)
Net Debt to Adjusted EBITDA is a non-GAAP financial measure frequently used by
investors and credit rating agencies. It is an important measure used by
management to evaluate our access to liquidity, and we believe it is a
representation of our financial strength. Our Net Debt to Adjusted EBITDA ratio
is calculated using a numerator of our debt minus cash and cash equivalents,
divided by the sum of the most recent four quarters of Adjusted EBITDA. In the
table that follows, we have provided the calculation of our debt and net debt as
a ratio of Adjusted EBITDA.
Sep. 26, 2026
────────────────────────────────────────────────────────────────────────
Current maturities of long-term debt $ 960
Long-term debt 12,860
Total Debt (GAAP) 13,820
Cash & Cash Equivalents -3,171
Net Debt (Non-GAAP) $ 10,649
Net Earnings for the previous 12 months $ 1,806
(GAAP)
Adjusted EBITDA for the previous 12 $ 4,445
months (Non-GAAP)(1)
Total Debt/Net Earnings Ratio (GAAP) 7.65
Total Debt/Adjusted EBITDA Ratio 3.11
(Non-GAAP)
Net Debt/Adjusted EBITDA Ratio 2.40
(Non-GAAP)
Note:
(1)Refer to non-GAAP reconciliation at
the end of this release.
18
Sysco Corporation and its Consolidated Subsidiaries
Non-GAAP Reconciliation (Unaudited)
Impact of Certain Items on Earnings Before Interest, Taxes, Depreciation and
Amortization (Trailing Twelve Months)
(In Millions)
13-Week 13-Week
Period 13-Week Period 13-Week
Ended Period Ended Period
Sep. Ended Mar. Ended
26, Jun. 27, 28, Dec. 27,
2026 2026 2026 2025 Total
──────────────────────────────────────────────────────────────────────────────
Net
earni… $ 526 $ 551 $ 340 $ 389 $ 1,806
(GAAP)
Inter… 261 205 168 173 807
(GAAP)
Income
taxes 161 169 105 121 556
(GAAP)
Depre…
and 262 252 251 240 1,005
amort…
(GAAP)
EBITDA $ 1,210 $ 1,177 $ 864 $ 923 $ 4,174
(Non-…
Certa…
Item
adjus…
Impact
of
restr…
and 98 77 93 55 323
trans…
proje…
costs…
Impact
of 57 38 13 23 131
acqui…
costs…
Impact
of
deal
conti… -237 54 — — -183
rate
lock
trans…
EBITDA
adjus…
for $ 1,128 $ 1,346 $ 970 $ 1,001 $ 4,445
Certa…
Items
(Non-…
Includes charges related to restructuring and severance, as well as
various transformation initiative costs, primarily consisting of
supply chain transformation costs and changes to our business
(1) technology strategy, excluding charges related to accelerated
depreciation. In addition, the 13-week period ended Jun. 27, 2026
includes the reversal of charges associated with a legal matter that
were included in the 13-week period ended Mar. 28, 2026.
(2) Includes acquisition and due diligence costs.
The 13-week period ended Sep. 26, 2026 includes a gain on deal
contingent rate lock transactions related to the planned acquisition
(3) of Jetro Restaurant Depot. The 13-week period ended Jun. 27, 2026
includes a loss on deal contingent rate lock transactions related to
the planned acquisition of Jetro Restaurant Depot.
In arriving at adjusted EBITDA, Sysco does not adjust out interest
income of $7 million or non-cash stock compensation expense of $28
million in Q1 fiscal year 2027, interest income of $8 million or
(4) non-cash stock compensation expense of $24 million in Q4 fiscal year
2026, interest income of $6 million or non-cash stock compensation
expense of $31 million in Q3 fiscal year 2026, and interest income of
$5 million or non-cash stock compensation expense of $33 million in
Q2 fiscal year 2026.
19
Projected Adjusted EPS Guidance
Adjusted earnings per share is a non-GAAP financial measure; however, we cannot
predict with certainty certain items that would be included in the most directly
comparable GAAP measure for the relevant future periods. Due to these
uncertainties, we cannot provide a quantitative reconciliation of projected
adjusted EPS to the most directly comparable GAAP financial measure without
unreasonable effort. However, we expect to calculate adjusted earnings per share
for future periods in the same manner as the reconciliations provided for the
historical periods herein.
20