Sysco (SYY) Q2 2026 earnings summary

Executive summary

• Sales grew 3.0% year-over-year to $20.8 billion in Q2 FY26, with strong performance across all major segments and local case volume up 1.2%.

• Gross profit increased 3.9% to $3.8 billion, with gross margin expanding 15 basis points to 18.3%.

• Adjusted operating income rose 3.1% to $807 million; adjusted EPS increased 6.5% to $0.99.

• Net earnings declined 4.2% to $389 million due to higher restructuring and acquisition costs, but adjusted net earnings rose 3.9% to $476 million.

• Management raised full-year adjusted EPS guidance to the high end of $4.50–$4.60, expecting 2.5%+ local case growth in H2 FY26.

Financial highlights

• Q2 sales reached $20.8 billion, up 3.0% year-over-year; gross profit was $3.8 billion, up 3.9%.

• Adjusted operating income was $807 million (+3.1%); adjusted EBITDA was $1.0 billion (+3.3%).

• Free cash flow for the first 26 weeks was $413 million, up from $331 million year-over-year.

• USFS sales grew 2.4% to $14.4 billion; International sales up 7.3% to $4.0 billion; SYGMA sales up 0.5% to $2.1 billion.

• Operating expenses increased 5.5%, mainly due to headcount, capacity investments, and higher incentive compensation.

Outlook and guidance

• Full-year adjusted EPS is expected at the high end of $4.50–$4.60, with projected growth of 5–7% despite a $100 million incentive compensation headwind.

• Management expects at least 2.5% local case growth in H2 FY26, supported by customer-focused growth programs.

• Projected net sales growth of 3–5% to $84–$85 billion, driven by inflation, volume growth, and M&A.

• Share repurchases are planned to resume in H2 FY26, potentially up to $1.0 billion.

• Plan $1 billion in dividends and $1 billion in share repurchases for FY 2026.