Sysco Corporation reported a fiscal year 2025 revenue of $81.4 billion, marking a 3.2% increase from the previous year’s $78.8 billion. The growth was attributed to inflationary pressures and volume increases, particularly from recent acquisitions. However, the company experienced a decline in operating income, which fell by 3.6% to $3.1 billion, primarily due to a noncash goodwill impairment charge of $92 million related to its Guest Worldwide business. Adjusted operating income, excluding this charge, increased by 1.2% to $3.5 billion.
In terms of profitability, Sysco's net earnings decreased by 6.5% to $1.8 billion, with diluted earnings per share dropping to $3.73 from $3.89 in the prior year. Adjusted diluted earnings per share, which excludes certain items, rose slightly by 3.5% to $4.46. The company’s gross profit also saw a modest increase of 2.5%, reflecting effective management of product cost inflation, although gross margin decreased by 13 basis points to 18.4%.
Operationally, Sysco served approximately 730,000 customer locations, including restaurants, healthcare facilities, and educational institutions. The U.S. Foodservice Operations segment generated $57.0 billion in sales, accounting for 70% of total revenue, while the International Foodservice Operations segment contributed $14.9 billion. The SYGMA segment, which focuses on quick-service chain restaurants, reported sales of $8.4 billion, an 8.3% increase from the previous year. The company’s employee headcount decreased slightly to about 75,000, down from 76,000 in the prior year.
Strategically, Sysco continued to focus on acquisitions as part of its growth strategy, acquiring Campbells Prime Meat in fiscal 2025, which is expected to enhance its specialty offerings. The company also divested its joint venture in Mexico, which was not significant to its overall operations. Looking ahead, Sysco anticipates revenue growth of 3% to 5% in fiscal 2026, driven by expected volume increases and a stable inflation rate of around 2%. The company plans to invest approximately $700 million in capital expenditures to support its growth initiatives.
About SYSCO CORP
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