Sysco Corp.

Q4 & FY26 performance beat guidance (good) - Adjusted EPS: $1.53 in Q4, ahead of prior expectations; FY26 adjusted EPS: $4.61, above full-year guidance range. - Revenue: >$22B total revenue, +4.7% YoY. - Volumes: USFS and International segments both delivered positive volume growth (including 2.6% case growth in USFS national and double-digit International profit growth). - Profitability: Enterprise adjusted operating income +4.1% YoY and adjusted EBITDA +4.7%; supply chain productivity supported operating leverage.

Momentum + AI-driven efficiency program underpin FY27 outlook (key forecast/opportunity) - Management says business momentum accelerated on a 2-year stack basis. - FY27 adjusted EPS growth forecast: +9% to +11% (reported numbers include the 53rd week); guide implies ~$5.02–$5.12 adjusted EPS for the year. - FY27 revenue forecast: +6% to +7% to ~$90B, supported by ~2.5% local case growth in USFS. - Efficiency / AI transformation: company expects ~$100M in-year cost savings in FY27 (net of related investments), starting late Q1 and back-half weighted, with largest weight toward USFS; examples include routing software upgrades, working capital improvements via forecasting/fill-rate, reverse auction tools for indirect spend, and AI in contract-bid operations. - Confidence language: management explicitly frames AI/business modernization as enabling EPS growth to offset headwinds from pausing buybacks and supporting sustained operating margin expansion later.

Segment drivers: local strength and International growth (good) - USFS local case growth: +2.6% in Q4, improving sequentially (+130 bps on a 2-year stacked basis); local acceleration described as driven by better colleague retention/productivity and targeted growth initiatives (e.g., Sysco Your Way and Perks 2.0, plus AI360 selling tool). - Sysco Brand mix: +30 bps in Q4 local mix to 46.4%; value-tier item sales grew 4x faster than the overall book without cannibalizing—described as net-new cases shifting from competitors (supportive of profitability). - International: 11th consecutive quarter of double-digit adjusted operating income growth; adjusted operating income +15.7% YoY with local cases +4.5%, and margins rising materially over time (from ~2% in 2022 to >4% in FY26).