Sysco's Q2 sales slightly beat expectations on higher US volumes

Sysco

27/01/2026 13:11

Overview

Food distributor's fiscal Q2 sales rose 3%, slightly beating analyst expectations

Adjusted EPS for fiscal Q2 beat analyst expectations, rising 6.5%

Company's gross profit increased 3.9%, driven by effective inflation management

Outlook

Sysco expects full-year adjusted EPS at the high end of $4.50-$4.60

Company anticipates at least 2.5% local case growth in second half of fiscal year

Sysco projects adjusted EPS growth in FY26 at high end of 5%-7%

Result Drivers

LOCAL CASE GROWTH - Sysco reported a 1.2% increase in U.S. local case volumes, contributing to overall sales growth

INFLATION MANAGEMENT - Gross profit rose 3.9% due to effective management of product cost inflation and strategic sourcing efficiencies

INTERNATIONAL GROWTH - International segment sales grew 7.3%, supported by strong local volume gains and favorable foreign exchange rates

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Slight Beat*
$20.80 bln
$20.76 bln (12 Analysts)
Q2 Adjusted EPS
Beat
$0.99
$0.98 (14 Analysts)
Q2 EPS
$0.81


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 7 "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 16.4% above its January 26 closing price of $75.63

The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release: ID:nGNX5x3XBy

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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.)