Sysco’s fourth quarter saw a marked positive market reaction as the company delivered results in line with Wall Street’s revenue expectations and slightly surpassed non-GAAP earnings forecasts. Management attributed performance to improving U.S. case volumes, disciplined expense control, and momentum in its international division. CEO Kevin Hourican noted, “Our results were enabled by improving case volume trends, strengthening gross margin performance and disciplined expense management.” Notably, local case volume growth outpaced industry trends despite broader restaurant traffic declines, aided by enhanced sales team retention and new productivity tools.
Is now the time to buy SYY? Find out in our full research report (it’s free for active Edge members).
Sysco (SYY) Q4 CY2025 Highlights:
- Revenue: $20.76 billion vs analyst estimates of $20.77 billion (3% year-on-year growth, in line)
- Adjusted EPS: $0.99 vs analyst estimates of $0.98 (1.4% beat)
- Adjusted EBITDA: $1.00 billion vs analyst estimates of $1.02 billion (4.8% margin, 1.8% miss)
- Operating Margin: 3.3%, in line with the same quarter last year
- Sales Volumes were flat year on year, in line with the same quarter last year
- Market Capitalization: $39.68 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Sysco’s Q4 Earnings Call
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Mark Carden (UBS) asked about monthly variation in local case growth and the impact of weather disruptions. CEO Kevin Hourican explained that performance improved each month and January started strong, but some weather-related gains could be offset later in the quarter.
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Jeffrey Bernstein (Barclays) pressed on drivers behind local case volume guidance. Hourican clarified that internal factors—such as sales team productivity, AI360 adoption, and loyalty programs—were key, rather than broader industry trends.
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Lauren Silberman (Deutsche Bank) inquired about the balance between new account wins and retention. Hourican highlighted all-time high new customer wins and improved loss rates, attributing gains to enhanced colleague retention and new tools.
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Jake Bartlett (Truist Securities) questioned the source of the increased EPS outlook. CFO Kenny Chung pointed to top line momentum, sales team retention, and AI360, not just lower depreciation and amortization, as main contributors.
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John Heinbockel (Guggenheim) asked about local drop size and customer loss ratios. Hourican acknowledged a slight drop size decline but expects record customer retention and acquisition metrics going forward.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will track (1) the effectiveness of AI360 and sales force training in sustaining higher local volume growth, (2) the impact of value tier product expansion on customer acquisition and retention, and (3) continued margin improvement from international and non-restaurant business diversification. The integration of Ginsburg Foods and execution amid industry headwinds will also be important signposts.
Sysco currently trades at $83.31, up from $75.63 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).
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