Food distributor Sysco's Q1 profit, sales top estimates as margins increase

Sysco

28/10/2025 12:15

Overview

Sysco fiscal Q1 sales grow 3.2%, beating analyst expectations

Adjusted EPS for fiscal Q1 rises 5.5%, exceeding analyst expectations

Operating income for fiscal Q1 decreased 1.0% to $800 mln

Outlook

Sysco confident of full-year sales growth of 3%-5%

Sysco projects full-year adjusted EPS growth of 1%-3%

Excluding compensation impact, Sysco sees EPS growth of 5%-7%

Result Drivers

PRODUCT COST MANAGEMENT - Sysco's gross profit increase was driven by effective management of product cost inflation and strategic sourcing efficiencies

USFS SEGMENT GROWTH - U.S. Foodservice Operations saw slight volume growth and continued investments in capacity and headcount, leading to a sales increase

INTERNATIONAL SEGMENT PERFORMANCE - International Foodservice Operations achieved strong margin management and local volume growth, boosting sales by 4.5%

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Beat
$21.10 bln
$21.07 bln (12 Analysts)
Q1 Adjusted EPS
Beat
$1.15
$1.12 (14 Analysts)
Q1 EPS
$0.99


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 8 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the food retail & distribution peer group is "buy"

Wall Street's median 12-month price target for Sysco Corp is $88.00, about 11.4% above its October 27 closing price of $78.00

The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release: ID:nGNXbKj2Vg

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)