Sysco Corporation (NYSE: SYY) reported first-quarter fiscal 2026 results slightly ahead of expectations, though shares fell more than 2% intra-day Tuesday.
Adjusted EPS was $1.15, topping the $1.12 estimate, and revenue increased 3.2% year over year to $21.1 billion, just above the $21.07 billion consensus. Core U.S. Foodservice Operations volume growth was subdued at 0.1%, with local case volume down 0.2%.
Operating income decreased 1.0% to $800 million, while adjusted operating income rose 2.9% to $898 million. Gross profit increased 3.9% to $3.9 billion, and gross margin expanded 13 basis points to 18.5%. Operating expenses grew 5.3% on investments in capacity and sales headcount, outpacing revenue growth.
Sysco maintained its full-year fiscal 2026 targets for 3-5% sales growth and 1-3% adjusted EPS growth. The International Foodservice Operations segment was a relative bright spot, with sales up 4.5% and adjusted operating income up 13.1% to $147 million.