Sysco Corporation (SYY) AI Stock Analysis

Sysco Corporation markets and distributes food and related products globally across the United States, Canada, the United Kingdom, France, and other international markets. Its food portfolio features frozen foods, canned and dry goods, fresh meat, seafood, dairy products, beverages, imported specialties, and fresh produce. Sysco also provides non-food items including paper products, tableware, cookware, kitchen equipment, and cleaning supplies. Serving restaurants, hospitals, nursing homes, schools, colleges, hotels, motels, and industrial caterers, the company operated a network of 333 distribution facilities as of July 2022 to support its deliveries.

Sysco grew revenue from $68.64B in FY2022 to $76.33B in FY2023, $78.84B in FY2024, $81.37B in FY2025, and $84.55B in FY2026. Revenue growth cooled from 33.8% in FY2022 to 3.9% in FY2026, alongside a 5-year revenue CAGR of 10.5% from FY2021 to FY2026. Gross margin held steady at 18.5% in FY2026, matching FY2024. Operating margin was 3.7% in FY2026, compared to 3.4% in FY2022 and 4.1% in FY2024. Net income reached $1.76B with diluted EPS of $4.61 in FY2026. In the latest quarter ending June 30, 2026, quarterly revenue grew 4.7% year-over-year while quarterly earnings expanded 5.3%.

As of June 30, 2026, Sysco held $1.79B in cash and short-term investments against total debt of $14.97B, leaving net debt at $13.18B. Shareholders' equity stood at $2.67B, resulting in a debt-to-equity ratio of 5.61 and a current ratio of 1.28. In FY2026, the company generated $2.64B in operating cash flow and $1.94B in free cash flow. Capital allocation in FY2026 included $700.0M for capital expenditures, $1.04B in dividends paid, and $200.0M used for share buybacks.

At a last close of $82.22, Sysco traded at a trailing P/E of 21.9x and a forward P/E of 15.2x, compared to medians of 23.5x and 15.3x for its S&P 500 Consumer Defensive peers. Its enterprise value reached $50.17B, with an EV-to-EBITDA ratio of 12.2x versus the peer median of 14.8x. Sysco's price-to-sales was 0.5x, below the peer median of 1.8x. Over the past year, SYY produced a 7.3% return compared to 16.8% for the S&P 500 (SPY), while its 5-year return of 14.3% trailed the index's 83.0% return.

Sysco pays a quarterly dividend with an annualized forward payout of $2.20 per share, yielding 2.68% as of October 16, 2026. The company has paid consecutive dividends for 41 years and has achieved a 5-year annualized dividend growth rate of 3.1%. Its payout ratio is 47.3%, and its last ex-dividend date was October 2, 2026.

Wall Street analysts maintain 5 Strong Buy, 2 Buy, 6 Hold, and 1 Strong Sell ratings on Sysco. The mean price target is $91.08, representing a 10.8% premium over the last close of $82.22. For the fiscal year ending June 30, 2027, consensus estimates forecast EPS of $5.07 on revenue of $90.02B. Sysco beat EPS estimates in 3 of the last 4 quarters, and its next earnings date is November 3, 2026.

This page is an AI-written research summary of Sysco Corporation (SYY). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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