Sysco earnings beat estimates, but sales miss and the growth outlook softens
Earnings results
- EPS beat +1.7%
Actual: $1.19 · Cons.: $1.17 (adjusted diluted EPS)
- Revenue miss -2.1%
Actual: $21.744B · Cons.: $22.2B (reported consolidated sales)
- Guidance
Maintained FY2027 adjusted EPS growth of 9–11% and local volume growth of about 2.5%; sales growth now expected at the lower end of 6–7%.
Earnings and the stock move
Sysco released first-quarter fiscal 2027 results before open on November 3. Adjusted profit per share exceeded the dated pre-release estimate, while sales fell short. The company retained 9–11% adjusted earnings growth guidance but now expects sales growth at the lower end of its 6–7% range because food-price inflation is lower. Local volume assumptions stayed intact. This puts the investor focus on cost savings and operating efficiency rather than relying on higher selling prices. Shares declined during the following regular session; no single factor is presented as the sole reason.
Q1 FY2027 ended September 26, 2026 earnings recap
Sysco kept its profit-growth target but shifted expected sales growth toward the lower end of its range. Shares fell 7.2% during trading on November 3, 2026, following earnings.
- Adjusted EPS, or profit per share excluding selected items, was $1.19. That beat the $1.17 forecast published before results by 1.7%; GAAP profit per share was $1.09.
- Sales rose 2.8% to $21.74 billion, 2.1% below the $22.2 billion forecast published before results. Lower food-price inflation limited growth in sales dollars.
- Full-year adjusted profit-per-share growth guidance stayed at 9–11%. Sales growth is now expected near the lower end of 6–7%, while the local volume-growth assumption remains about 2.5%.
- U.S. local case volume grew 2.7%, showing that more products were delivered even with soft restaurant traffic. Gross margin improved as sourcing and product mix helped profitability.
- Adjusted operating profit rose 3.2% to $927 million. Reported operating profit fell 10.4% to $717 million as costs for the pending Jetro Restaurant Depot acquisition weighed on results.
- Management expects $100 million in technology-enabled savings this fiscal year, with benefits accelerating in the second half. Delivering those savings matters when sales growth is softer.
Watch local customer demand, fuel costs and the pending acquisition’s financing and approval milestones. Volume growth can support earnings, but weaker restaurant spending or higher delivery costs can offset it.
Financials and technicals
Charts through Nov 2, 2026. The session move above may reflect later news.
Technical setup and risks
The completed November 2 charts show an $81.74 close, above the 20-day average of $80.96 and 50-day average of $80.5. November 3 trading moved below the prior $81.1–$81.6 low area. Reclaiming that area would help a rebound; continued trading below it leaves recovery unconfirmed. Recent highs near $83–$84 form a further historical hurdle. These approximate areas can fail and are separate from the current intraday quote.
AI-assisted research with source and calculation checks. Prices may be delayed. Technical charts use the stated completed session, which can precede the quoted intraday move. Educational information; investing involves risk.