Company: SYY
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0000096021-25-000157
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Company: SYSCO CORP
Filing Date: 2025-10-29
Form: 10-Q
Item: Item 2
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Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations

This discussion should be read in conjunction with our consolidated financial statements as of June 28, 2025, and for the fiscal year then ended, and Management’s Discussion and Analysis of Financial Condition and Results of Operations, both contained in our fiscal 2025 Form 10-K, as well as the consolidated financial statements (unaudited) and notes to the consolidated financial statements (unaudited) contained in this report. 

Highlights

Our first quarter of fiscal 2026 results included sales growth of 3.2% as compared to the first quarter of fiscal 2025, driven by increased sales in our U.S. Foodservice Operations, International Foodservice Operations, and SYGMA segments. Our gross profit increased 3.9% compared to the first quarter of fiscal 2025, due to product cost savings driven by strategic sourcing initiatives. Operating income decreased 1.0% compared to the first quarter of fiscal 2025, due to increased restructuring and transformational project costs and acquisition-related costs. We consider these “Certain Item” expenses (as defined below). Excluding Certain Item expenses, adjusted operating income increased 2.9% as compared to the first quarter of fiscal 2025. Our net earnings for the first quarter of fiscal 2026 decreased 2.9% as compared to the first quarter of fiscal 2025. Excluding Certain Item expenses, adjusted net earnings increased by 2.0% as compared to the first quarter of fiscal 2025. See below for a comparison of our fiscal 2026 results to our fiscal 2025 results, both including and excluding Certain Items. 

Comparisons of results from the first quarter of fiscal 2026 to the first quarter of fiscal 2025 are presented below:

•Sales:

◦increased 3.2%, or $664 million, to $21.1 billion;

•Operating income:

◦decreased 1.0%, or $8 million, to $800 million;

◦adjusted operating income increased 2.9%, or $25 million, to $898 million;

•Net earnings:

◦decreased 2.9%, or $14 million, to $476 million;

◦adjusted net earnings increased 2.0%, or $11 million, to $551 million;

•Basic earnings per share:

◦decreased 1.0%, or $0.01