Sysco
Sysco's revenue rose 3.9% to $84.6 billion in fiscal 2026. Its operating margin was 3.7%, down from 3.8% a year earlier. Free cash flow was $1.9 billion, up 20.8%. It paid out $1.2 billion in dividends and buybacks, 64% of free cash flow. The diluted share count fell 1.9%.
Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on capital is after-tax operating income as a share of the money invested in the business: debt plus equity, minus cash. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.
What Sysco does
Sysco sells, markets and distributes food and related products to customers who prepare meals away from home. These include restaurants, hospitals and other healthcare facilities, schools, hotels, caterers and entertainment venues. Its main operations are in North America and Europe. Its annual sales were $84.6 billion in fiscal 2026, which it calls an all-time high.
Sysco makes its money by selling and delivering goods to these customers. It reports three segments. U.S. Foodservice Operations covers its U.S. broadline distribution, which carries a full line of food and non-food products, and specialty businesses such as fresh produce, meat and seafood, Italian foods and restaurant equipment. International Foodservice Operations covers distribution outside the U.S., including Canada, the United Kingdom, France, Ireland and Sweden. SYGMA serves quick-service restaurant chains. A small group called Other includes its hotel supply business.
On March 30, 2026, Sysco agreed to buy Jetro Restaurant Depot, a wholesale cash-and-carry supplier to smaller independent restaurants, with 167 warehouse stores in 35 states. Sysco agreed to pay about $29.1 billion in cash and shares. The deal needs regulatory clearance and other conditions before it can close, and Sysco expects it to close by the third quarter of fiscal 2027.
Its biggest risks, as it describes them
- Low margins in its industry, and inflation or deflation that changes its product costs.
- Pending deal to acquire Jetro Restaurant Depot may not close on time, or at all, or may not deliver the benefits it expects.
- Debt, including financing for the acquisition, that could limit its flexibility.
- Losing or reducing business with long-term customers, and a changing mix of customer types that could lower margins.
- Possible work stoppages if it cannot renegotiate union contracts, and large payments owed to multiemployer pension plans.
Charts show fiscal years, from the 10-K filings.
Revenue and margins
Net income and earnings per share
From fiscal 2017 to 2026, earnings per share grew 6.5% a year and net income 4.9% a year, as buybacks cut the share count by 12%.
Returns on capital
Cash flow
Payouts and share count
Valuation
Two ways to value Sysco yourself, both starting from its filings: a discounted cash flow model and the price-to-earnings method.
Discounted cash flow (DCF)
A discounted cash flow (DCF) model values a business as the cash it may generate in future, discounted back to today. The starting figures come from Sysco's 10-K and the assumptions are yours: start from one of three example scenarios, then change any figure to see what it implies for a share, and how that compares with the last share price.
Value per share on three example scenarios, from Sysco's fiscal 2026 free cash flow of $1.9B, net cash of −$11.7B at June 27, 2026 and 481 million diluted shares, from its filings. The scenarios are fitted to Sysco: the base scenario's growth in years 1 to 5 is its revenue growth over the last 3 years, 3.5% a year; the cautious and optimistic ones are lower and higher, and growth in years 6 to 10 is halfway to the long-run rate. The base scenario's discount rate is 7% for a stable business (Food Distributors); the cautious and optimistic ones use a point more and a point less. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.
- Last close, October 26, 2026
- $82.16
- Value on these assumptions, against the last close
- —
- Cash flows in years 1 to 10, valued today
- —
- Everything after year 10, valued today
- —
- Plus net cash
- —
- Share of value from after year 10
How the value changes with two assumptions
Price-to-earnings (P/E) method
Another common way to value a company is to multiply its earnings per share by a price-to-earnings (P/E) multiple: the number of years of today's earnings an investor pays for a share. A higher multiple usually means investors expect earnings to grow. Choose a multiple, for example from similar companies, to see the value it gives.
Value per share on three example scenarios, from Sysco's earnings per share of $3.66 (in fiscal 2026). Each grows earnings for a year at the cash flow scenarios' rates and applies a multiple to next year's earnings: 24.6×, the middle of Sysco's own P/E today, its peers' median and its sector's median (the Consumer Staples median) for the base scenario, 20% less and more for the cautious and optimistic ones. The price is brought back a year at 8%, 7% and 6%. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.
- Last close, October 26, 2026
- $82.16
- Value at this multiple, against the last close
- —
- Sysco's P/E at the last close
- 22.4×
| Company | Last close | Earnings per share | P/E today |
|---|---|---|---|
| Chefs' WarehouseCHEF | $106.33 | $1.83 | 58.1× |
| Performance Food GroupPFGC | $95.63 | $2.29 | 41.8× |
| US FoodsUSFD | $101.36 | $3.25 | 31.2× |
| AndersonsANDE | $64.58 | $2.79 | 23.1× |
| SyscoSYY | $82.16 | $3.66 | 22.4× |
Balance sheet
| Fiscal year end | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Cash and short-term investments | 0.9 | 0.8 | 0.7 | 1.1 | 1.8 |
| Debt incl. finance leases | 10.6 | 10.4 | 12.0 | 13.3 | 13.5 |
| Net debt (negative means net cash) | 9.8 | 9.7 | 11.3 | 12.2 | 11.7 |
| Net debt to EBITDA | 3.1x | 2.5x | 2.8x | 3.0x | 2.9x |
| Debt to equity | 7.7x | 5.2x | 6.4x | 7.3x | 5.1x |
| Interest coverage | 4.7x | 6.0x | 5.8x | 4.9x | 4.6x |
| Current ratio | 1.2x | 1.2x | 1.2x | 1.2x | 1.3x |
| Quick ratio | 0.7x | 0.7x | 0.7x | 0.7x | 0.8x |
Insider trades
Over the 12 months between October 27, 2025 and October 26, 2026, 1 insider bought $1.0 million of Sysco shares on the open market, and 2 insiders sold $2.0 million, $1.8 million of it under trading plans set up in advance.
| Date | Insider | Trade | Shares | Price | Value | Filing |
|---|---|---|---|---|---|---|
| Sep 14, 2026 | Ronald L PhillipsEVP and CHRO | Sold plan | 57 | $84.32 | $4,806 | Form 4 |
| Sep 11, 2026 | Ronald L PhillipsEVP and CHRO | Sold plan | 960 | $83.00 | $79,680 | Form 4 |
| Aug 24, 2026 | Ronald L PhillipsEVP and CHRO | Sold plan | 506 | $84.09 | $42,550 | Form 4 |
| Aug 21, 2026 | Ronald L PhillipsEVP and CHRO | Sold plan | 7,350 | $83.61 | $614,534 | Form 4 |
| Aug 11, 2026 | Ronald L PhillipsEVP and CHRO | Sold plan | 367 | $83.39 | $30,604 | Form 4 |
| Aug 10, 2026 | Ronald L PhillipsEVP and CHRO | Sold plan | 6,285 | $83.94 | $527,563 | Form 4 |
| May 26, 2026 | John M HinshawDirector | Bought | 13,304 | $75.17 | $1.0 million | Form 4 |
| Feb 2, 2026 | Sheila TaltonDirector | Sold | 2,801 | $82.99 | $232,455 | Form 4 |
| Jan 27, 2026 | Ronald L PhillipsEVP and CHRO | Sold plan | 5,601 | $81.00 | $453,681 | Form 4 |
Piotroski F-score
The F-score counts how many of nine simple tests of profitability, funding and efficiency a company passed in a year (Piotroski, 2000). The more tests passed, the stronger the year: 8 or 9 is strong, 0 to 2 weak. Companies that report no gross profit are scored on the other eight.
| Test | FY24 | FY25 | FY26 |
|---|---|---|---|
| Net income is positive | Pass | Pass | Pass |
| Cash from operations is positive | Pass | Pass | Pass |
| Return on assets rose | Pass | Fail | Fail |
| Cash from operations exceeds net income | Pass | Pass | Pass |
| Debt fell relative to assets | Fail | Fail | Pass |
| Current ratio rose | Fail | Pass | Pass |
| Share count didn't rise | Pass | Pass | Pass |
| Gross margin rose | Pass | Fail | Pass |
| Revenue rose relative to assets | Fail | Fail | Fail |
| F-score | 6 of 9 | 5 of 9 | 7 of 9 |
| Accruals ratio | −4.3% | −2.6% | −3.2% |
Compare
Put Sysco side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.
Similar companies
| Company | Year | Revenue growth | Operating margin | Free cash flow margin | Return on capital | Net debt to EBITDA | F-score | Compare |
|---|---|---|---|---|---|---|---|---|
| Sysco | FY26 | 3.9% | 3.7% | 2.3% | 16.8% | 2.9x | 7 | |
| Performance Food Group | FY26 | 7.2% | 1.3% | 1.5% | 5.7% | 4.0x | 5 | Compare |
| US Foods | FY25 | 4.1% | 3.0% | 2.4% | 9.6% | 3.1x | 7 | Compare |
| Andersons | FY25 | −2.2% | — | −0.5% | 9.2% | 1.5x | 5 | Compare |
| Chefs' Warehouse | FY25 | 9.4% | 3.5% | 2.1% | 8.5% | 3.2x | 8 | Compare |
10 years of figures
| Fiscal year | FY17 | FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|---|---|---|---|---|
| Income statement | ||||||||||
| Revenue | 55.4 | 58.7 | 60.1 | 52.9 | 51.3 | 68.6 | 76.3 | 78.8 | 81.4 | 84.6 |
| Revenue growth | 9.9% | 6.1% | 2.4% | −12.0% | −3.0% | 33.8% | 11.2% | 3.3% | 3.2% | 3.9% |
| Gross profit | 10.6 | 11.1 | 11.4 | 9.9 | 9.4 | 12.3 | 14.0 | 14.6 | 15.0 | 15.6 |
| Research and development | — | — | — | — | — | — | — | — | — | — |
| Operating income | 2.1 | 2.3 | 2.3 | 0.7 | 1.4 | 2.3 | 3.0 | 3.2 | 3.1 | 3.1 |
| Net income | 1.1 | 1.4 | 1.7 | 0.2 | 0.5 | 1.4 | 1.8 | 2.0 | 1.8 | 1.8 |
| Diluted EPS (US$) | 2.08 | 2.70 | 3.20 | 0.42 | 1.02 | 2.64 | 3.47 | 3.89 | 3.73 | 3.66 |
| Diluted shares (millions) | 548 | 529 | 523 | 514 | 514 | 514 | 510 | 503 | 490 | 481 |
| Cash flow | ||||||||||
| Cash from operations | 2.2 | 2.2 | 2.4 | 1.6 | 1.9 | 1.8 | 2.9 | 3.0 | 2.5 | 2.6 |
| Capital expenditure | 0.7 | 0.7 | 0.7 | 0.7 | 0.5 | 0.6 | 0.8 | 0.8 | 0.9 | 0.7 |
| Free cash flow | 1.5 | 1.5 | 1.7 | 0.9 | 1.4 | 1.2 | 2.1 | 2.2 | 1.6 | 1.9 |
| Dividends paid | 0.7 | 0.7 | 0.8 | 0.9 | 0.9 | 1.0 | 1.0 | 1.0 | 1.0 | 1.0 |
| Share buybacks | 1.9 | 1.0 | 1.0 | 0.8 | 0.0 | 0.5 | 0.5 | 1.2 | 1.2 | 0.2 |
| Acquisitions | 2.9 | 0.2 | 0.1 | 0.1 | 0.0 | 1.3 | 0.0 | 1.2 | 0.0 | 0.2 |
| Stock-based compensation | 0.1 | 0.1 | 0.1 | 0.0 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 |
| Balance sheet at fiscal year end | ||||||||||
| Cash and short-term investments | 0.9 | 0.6 | 0.5 | 6.1 | 3.0 | 0.9 | 0.8 | 0.7 | 1.1 | 1.8 |
| Debt incl. finance leases | 8.2 | 8.3 | 8.1 | 13.0 | 10.7 | 10.6 | 10.4 | 12.0 | 13.3 | 13.5 |
| Total assets | 17.8 | 18.1 | 18.0 | 22.6 | 21.4 | 22.1 | 22.8 | 24.9 | 26.8 | 28.4 |
| Total liabilities | 15.4 | 15.6 | 15.5 | 21.5 | 19.9 | 20.7 | 20.8 | 23.1 | 24.9 | 25.7 |
| Shareholders' equity | 2.4 | 2.5 | 2.5 | 1.2 | 1.6 | 1.4 | 2.0 | 1.9 | 1.8 | 2.7 |
| Margins and ratios | ||||||||||
| Gross margin | 19.1% | 18.9% | 19.0% | 18.7% | 18.2% | 17.9% | 18.3% | 18.5% | 18.4% | 18.5% |
| Operating margin | 3.7% | 3.9% | 3.9% | 1.4% | 2.8% | 3.4% | 4.0% | 4.1% | 3.8% | 3.7% |
| Net margin | 2.1% | 2.4% | 2.8% | 0.4% | 1.0% | 2.0% | 2.3% | 2.5% | 2.2% | 2.1% |
| Free cash flow margin | 2.8% | 2.5% | 2.9% | 1.7% | 2.8% | 1.7% | 2.7% | 2.7% | 2.0% | 2.3% |
| Return on capital | 15.9% | 16.9% | 19.1% | 6.0% | 15.0% | 17.9% | 20.6% | 19.7% | 17.2% | 16.8% |
| Return on equity | 39.0% | 58.5% | 66.8% | 11.8% | 38.7% | 92.6% | 104.4% | 101.1% | 99.1% | 78.2% |
| Return on assets | 6.6% | 8.0% | 9.3% | 1.1% | 2.4% | 6.2% | 7.9% | 8.2% | 7.1% | 6.4% |
| Net debt to EBITDA | 2.5x | 2.5x | 2.5x | 4.5x | 3.5x | 3.1x | 2.5x | 2.8x | 3.0x | 2.9x |