Sysco Corporation

Strong Q4 + full-year beat (momentum accelerating) - Sysco reported Q4 fiscal 2026 total revenue of $22B (+4.7% YoY) and adjusted EPS of $1.53, ahead of prior guidance. - Annual adjusted EPS $4.61, above full-year guidance; reflects accelerating “business momentum” and positive momentum on a 2-year stack basis. - Profit improvement came from better case volumes in USFS local + national and continued double-digit International profit growth, plus supply chain productivity.

Guidance for FY2027: growth + margin expansion, with AI-driven cost-out - Company guides adjusted EPS growth of 9%–11% in fiscal 2027 (implying ~$5.02–$5.12), explicitly including the benefit of a 53rd week. - Expects reported net sales growth of ~6%–7% to ~$90B, driven by ~2.5% local case growth in USFS, plus inflation assumptions (~1.5%–2%) and ~2% from the extra week. - New efficiency program powered by AI/tech modernization targets ~$100M of in-year savings in FY2027 (net of investment; ramping later in the year; weighted to USFS). Management says the program is designed to offset the EPS impact of pausing buybacks.

USFS performance: local step-up led by retention/productivity + Sysco Brand - USFS local volumes grew +2.6% in Q4, with sequential improvement and a 2-year stack improvement; management credits better colleague retention and productivity. - Growth initiatives: Sysco Your Way and Perks 2.0 plus AI360 selling tools, which improved selling effectiveness and customer win/loss dynamics. - Sysco Brand mix increased +30 bps to 46.4%, with value-tier item growth 4x faster than overall book—described as net new cases (not cannibalization) contributing to profitability. - National contract: case volume +2.6%, supported by healthcare, travel & hospitality, and foodservice management; partly offset by industry softness in national restaurants.