Sysco Corporation Reports $84.6 Billion Revenue for Fiscal Year 2026, Plans $29.1 Billion Acquisition

Sysco Corporation reported a fiscal year 2026 revenue of $84.6 billion, marking a 3.9% increase from the previous year’s $81.4 billion. The growth was attributed to inflationary pressures and volume increases across its U.S. Foodservice Operations, International Foodservice Operations, and SYGMA segments. However, net earnings decreased by 3.9% to $1.8 billion, primarily due to increased operating expenses and interest costs. Adjusted net earnings, which exclude certain items, rose by 1.4% to $2.2 billion, reflecting improved operational efficiency.

The company’s operating income saw a slight increase of 0.2% to $3.1 billion, with adjusted operating income rising by 2.6% to $3.6 billion. Sysco's gross profit also increased by 4.5% to $15.6 billion, driven by strategic sourcing efforts and higher volumes from local customers. The gross margin improved marginally to 18.5%, up from 18.4% in the previous fiscal year. Despite these positive indicators, the company faced challenges, including rising sales headcount investments and restructuring costs.

In terms of strategic developments, Sysco announced a significant acquisition plan on March 30, 2026, to acquire Jetro Restaurant Depot for approximately $29.1 billion. This acquisition is expected to enhance Sysco's market presence, particularly in serving smaller, independent restaurants. The transaction is anticipated to close by the third quarter of fiscal 2027, pending regulatory approvals. Sysco has committed to financing the acquisition through a combination of cash, equity, and new debt, including a $22 billion bridge loan facility.

Operationally, Sysco employed approximately 75,000 employees as of June 27, 2026, consistent with the previous year. The company operates 333 distribution facilities across North America and Europe, with a focus on expanding its geographic footprint and enhancing product offerings. Sysco estimates that it serves about 18% of the U.S. foodservice market, which is projected to grow to approximately $390 billion by the end of calendar 2026. The company continues to invest in technology and employee training to drive productivity and efficiency.

Looking ahead, Sysco expects revenue growth of 6% to 7% in fiscal 2027, driven by anticipated volume growth and a moderate inflation rate of 1.5% to 2.0%. The company aims to leverage its strategic initiatives, including digital enhancements and supply chain improvements, to achieve these targets. However, Sysco remains cautious about potential economic uncertainties and competitive pressures that could impact its performance.