| Metric | Value ($ M) | Q2 FY26 | Q3 FY25 |
|---|---|---|---|
| Revenue | 20.5K | 1.2% | 4.7% |
| Total Income | 20.5K | 1.2% | 4.7% |
| Expenditure | 19.9K | 0.8% | 5.2% |
| PBT | 445.00 | 12.8% | 14.9% |
| Net Profit | 340.00 | 12.6% | 15.2% |
| OPM | 3.02% | 0.32pp | 0.46pp |
| NPM | 1.66% | 0.22pp | 0.39pp |
| EPS | 0.71 | 12.3% | 13.4% |
Sysco Reports Q3 FY2026 Results
03 May 2026 · 3 May, 6:31 pm
Summary
Sysco Corporation announced its third quarter fiscal year 2026 results, with sales increasing by 4.7% to $20.5 billion. Gross profit rose by 6.5% to $3.8 billion, resulting in a gross margin of 18.6%. Net earnings decreased by 15.2% to $340 million. The company highlighted strong performance in U.S. local volumes and International Foodservice Operations. Sysco is confident in delivering full-year adjusted EPS at the high end of their $4.50 to $4.60 guidance range.
Key Highlights
- 1
Sysco's sales increased by 4.7% to $20.5 billion in the third quarter of fiscal year 2026.
- 2
Gross profit for the third quarter increased by 6.5% to $3.8 billion, with gross margin increasing 31 basis points to 18.6%.
- 3
Net earnings decreased 15.2% to $340 million, while adjusted net earnings decreased 3.6% to $452 million.
- 4
U.S. Foodservice Operations sales increased 3.1% to $14.2 billion for the third quarter.
- 5
Local case volume within U.S. Foodservice Operations increased 3.3% during the third quarter.
- 6
International Foodservice Operations sales increased 12.4% to $3.9 billion in the third quarter.
- 7
Cash flow from operations increased 11% to $1.5 billion year-to-date, and free cash flow increased 19% to $1.1 billion year-to-date.
Management Comments
Kevin Hourican
Sysco delivered strong results in the third quarter of fiscal 2026, driven by continued acceleration in local case volume and expanded gross margins. Importantly, our U.S. local volumes grew 3.3%, the highest quarterly rate in over three years. This exceeded our prior commitment, and we remain confident in delivering over 2.5% U.S. local growth in Q4, which would put us on pace to accelerate on a two-year stack basis. Our USFS segment returned to operating profit growth for the quarter. We are encouraged by the progress, results, and momentum across each of our business segments. As we look ahead, our strong operating foundation, improving productivity, and the compelling opportunity presented by the pending Jetro Restaurant Depot combination, position Sysco to grow profitably, deepen our relationships with more local customers, and create incremental value for our shareholders.
Brandon Sewell
Third quarter results reflected strong earnings execution and solid cash flow generation, supported by continued volume acceleration, gross margin expansion, and disciplined cost management, which included headwinds from lapping $63 million of incentive compensation. Year‑to-date free cash flow increased 19%, and we are encouraged by improving productivity, particularly in our U.S. Foodservice local business. These results support our confidence in delivering full‑year adjusted EPS at the high end of our $4.50 to $4.60 guidance range, which continues to include an approximate $100 million ($0.16 per diluted share) headwind from lapping lower incentive compensation in fiscal 2025.
Informational and educational content only. Not investment advice.