Want to see SYY full AI Analyst Report?
Top Page
Sysco
(NYSE:SYY)
Select Model
Select Model
Rating:59Neutral
Price Target:
$84.00
▲(0.88% Upside)
Action:Reiterated
Date:09/06/26
SYY scores mid-range: financial fundamentals are supported by scale and improved cash generation but are held back by high leverage and thin/softening net profitability. The latest earnings call adds support via confident FY-2027 guidance and AI-driven cost savings, while technical indicators point to weak near-term momentum. Valuation is reasonable with a ~2.7% dividend yield, but not notably cheap at ~21.8x earnings.
Positive Factors
Durable revenue scale
Sustained multi-year revenue expansion demonstrates durable demand across Sysco’s food-away-from-home customer base. Greater scale can support purchasing leverage, distribution efficiency and customer reach, reinforcing the company’s competitive position over the next several quarters.
Negative Factors
High leverage
A large debt burden relative to the equity cushion increases sensitivity to margin pressure, refinancing conditions and interest expense. It can constrain capital allocation and reduce resilience if operating performance weakens, making deleveraging an important execution requirement.
Read all positive and negative factors
Positive Factors
Negative Factors
Durable revenue scale
Sustained multi-year revenue expansion demonstrates durable demand across Sysco’s food-away-from-home customer base. Greater scale can support purchasing leverage, distribution efficiency and customer reach, reinforcing the company’s competitive position over the next several quarters.
Read all positive factors
Sysco Key Performance Indicators (KPIs)
Any
Revenue by Product
Details sales generated from different products, offering insight into consumer preferences and the company's product strategy effectiveness.
Details sales generated from different products, offering insight into consumer preferences and the company's product strategy effectiveness.
Data provided by:
The Fly
The FlySysco (SYY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$38.35B
Dividend Yield2.71%
Average Volume (3M)3.13M
Price to Earnings (P/E)21.8
Beta (1Y)0.13
Revenue Growth3.91%
EPS Growth-2.17%
CountryUS
Employees75,000
SectorConsumer Defensive
Sector Strength42
IndustryFood Distribution
Share Statistics
EPS (TTM)3.67
Shares Outstanding479,096,000
10 Day Avg. Volume2,133,275
30 Day Avg. Volume3,127,540
Financial Highlights & Ratios
PEG Ratio-12.06
Price to Book (P/B)14.88
Price to Sales (P/S)0.47
P/FCF Ratio20.48
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$91.82Price Target Upside10.27% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)5.07
Revenue Forecast (FY)$89.58B
Sysco Business Overview & Revenue Model
Company Description
Sysco Corporation, through its subsidiaries, engages in the marketing and distribution of various food and related products to the foodservice or food-away-from-home industry in the United States, Canada, the United Kingdom, France, and internatio...
How the Company Makes Money
Sysco primarily makes money by purchasing food and related supplies from manufacturers and growers and reselling them to foodservice customers at a markup. Revenue is generated mainly from product sales delivered through its distribution network (...
Sysco Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Positive
Overall the call conveyed momentum: revenue and EPS beats, strong international performance, clear productivity gains, and a detailed AI‑driven efficiency plan that materially offsets paused buybacks and supports ambitious FY‑2027 guidance. Headline risks include modest gross margin pressure (driven by prior‑year comparability and inbound fuel costs), continued softness in restaurant foot traffic, a temporary pause in buybacks and regulatory review and financing/leverage related to the Restaurant Depot transaction. Taken together, the positives (growth, cash flow, AI cost‑out, international strength, constructive guidance) outweigh the near‑term challenges.Positive Updates
Top‑line Growth and EPS Outperformance
Total revenue of over $22 billion, up 4.7% year‑over‑year; Q4 adjusted EPS of $1.53 (quarter beat guidance) and full‑year adjusted EPS of $4.61, above prior guidance.
Negative Updates
Gross Margin Compression and Comparability Headwinds
Gross margin declined ~17 basis points to 18.7%; year‑over‑year comparability impacted by an outsized strategic sourcing benefit in the prior period and elevated inbound fuel costs in Q4.
Read all updates
Q4-2026 Updates
Positive
Negative
Top‑line Growth and EPS Outperformance
Total revenue of over $22 billion, up 4.7% year‑over‑year; Q4 adjusted EPS of $1.53 (quarter beat guidance) and full‑year adjusted EPS of $4.61, above prior guidance.
Read all positive updates
Company Guidance
Sysco guided fiscal 2027 to revenue growth of 6–7% (to about $90B, inclusive of a 53rd week worth roughly +2%), USFS local case growth of ~2.5%, inflation of ~1.5–2%, and adjusted EPS growth of 9–11% (approximately $5.02–$5.12; Q1 EPS $1.18–$1.20); the company expects $100M of in‑year AI/tech cost savings (≈$160M run‑rate), International to deliver double‑digit adjusted operating income growth and USFS to grow profits. Modeling assumptions include adjusted corporate expense ≈$900M, adjusted interest ≈$675M, adjusted other ≈$50M, tax rate ≈23.7–24.2%, depreciation & amortization ≈$850M and CapEx ≈0.8% of sales (~$720M); management plans roughly $1B of dividends (quarterly dividend raised to $0.55), has paused buybacks while targeting rapid deleveraging from a 2.7x net‑debt ratio, and said the guidance (which includes the 53rd week) sits at the high end of its long‑term growth algorithm with upside if cost‑outs or macro conditions improve.Sysco Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
41
Neutral
Cash Flow
70
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 84.55B | 81.37B | 78.84B | 76.33B | 68.64B |
| Gross Profit | 15.64B | 14.97B | 14.61B | 13.96B | 12.32B |
| EBITDA | 2.99B | 4.14B | 4.17B | 3.70B | 3.25B |
| Net Income | 1.76B | 1.83B | 1.96B | 1.77B | 1.36B |
Balance Sheet | |||||
| Total Assets | 28.40B | 26.77B | 24.92B | 22.82B | 22.09B |
| Cash, Cash Equivalents and Short-Term Investments | 1.79B | 1.07B | 696.00M | 745.00M | 867.09M |
| Total Debt | 14.97B | 14.49B | 12.95B | 11.17B | 11.39B |
| Total Liabilities | 25.73B | 24.92B | 23.03B | 20.78B | 20.67B |
| Stockholders Equity | 2.67B | 1.83B | 1.86B | 2.01B | 1.38B |
Cash Flow | |||||
| Free Cash Flow | 1.94B | 1.60B | 2.16B | 2.08B | 1.16B |
| Operating Cash Flow | 2.64B | 2.51B | 2.99B | 2.87B | 1.79B |
| Investing Cash Flow | -697.00M | -717.00M | -1.96B | -785.00M | -1.88B |
| Financing Cash Flow | -1.16B | -1.41B | -1.04B | -2.06B | -1.99B |
Sysco Technical Analysis
Negative
83.27
Price Trends
83.06
Negative
79.11
Positive
78.65
Positive
Market Momentum
-0.50
Positive
36.58
Neutral
12.81
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SYY, the sentiment is Negative. The current price of 83.27 is above the 20-day moving average (MA) of 82.69, above the 50-day MA of 83.06, and above the 200-day MA of 78.65, indicating a neutral trend. The MACD of -0.50 indicates Positive momentum. The RSI at 36.58 is Neutral, neither overbought nor oversold. The STOCH value of 12.81 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SYY.
Sysco Risk Analysis
Sysco disclosed 28 risk factors in its most recent earnings report. Sysco reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Sysco Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $22.51B | 31.53 | 16.75% | ― | 3.83% | 38.81% | |
70 Outperform | $4.67B | 48.05 | 15.09% | ― | 11.16% | 30.78% | |
65 Neutral | $2.35B | 13.30 | 14.15% | 1.15% | -5.20% | 120.12% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
60 Neutral | $15.54B | 42.88 | 7.63% | ― | 7.17% | 4.89% | |
59 Neutral | $38.35B | 21.81 | 75.46% | 2.71% | 3.91% | -2.17% | |
50 Neutral | $2.66B | -70.19 | -2.43% | ― | -3.22% | 44.69% |
* Consumer Defensive Sector Average
SYY
Sysco
80.05
0.75
0.95%
ANDE
The Andersons
69.31
29.00
71.92%
CHEF
The Chefs' Warehouse
114.36
49.52
76.37%
UNFI
United Natural Foods
43.93
15.14
52.59%
PFGC
Performance Food Group
98.63
-6.37
-6.07%
USFD
US Foods Holding
104.04
25.77
32.92%
Sysco Corporate Events
Business Operations and StrategyExecutive/Board ChangesM&A TransactionsPrivate Placements and Financing
Sysco Amends Credit Facility to Support JRD Acquisition
Positive
Sep 4, 2026
On April 16, 2026, Sysco and key subsidiaries entered a revolving credit agreement, which was amended on September 4, 2026, to add a $750 million senior unsecured delayed draw term loan with CoBank. The facility, split into six- and eight-year $37...
Business Operations and StrategyExecutive/Board ChangesM&A Transactions
Sysco Highlights AI-Focused Board Expansion and Strategy
Positive
Aug 20, 2026
On August 14, 2026, Sysco’s board voted to expand its size from 11 to 13 directors and elected Jason Murray and Thomas Ondrof, effective September 1, 2026, with Murray joining the Technology Committee and Ondrof the Audit Committee. Both new...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Sysco Highlights Strategic Jetro Restaurant Depot Acquisition Plans
Positive
Aug 12, 2026
On August 12, 2026, Sysco presented to investors on its planned acquisition of JRD Unico, Inc. and Warehouse Realty, LLC, parent entities of Jetro Restaurant Depot. The session, held during a headquarters visit and store tour, featured Sysco’...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.