| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 66 | 22.7x | 17.8x | Top tier | |
Growth | 43 | 3.9% | 7.1% | Around median | |
Quality | 73 | 15.2% | 4.5% | Top tier | |
Safety | 44 | 3.1x | 2.6x | Around median | |
Capital Return | 35 | — | 2.12% | Bottom tier | |
Momentum | 59 | 2.8% | 2.9% | Around median | |
Sentiment | 62 | 10 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Sysco Corporation operates in the distribution of food and related products, generating revenue by serving local and national customers through its U.S. Foodservice Operations segment, alongside its international business and SYGMA segment. The company supports sales with Sysco Brand products and specialty operations covering proteins, produce, equipment and supplies, and Asian foods; management believes that adding a specialty category to a customer account increases that customer's purchases, retention rate, and profitability.
In Q4 fiscal 2026, revenue exceeded $22 billion and increased 4.7%, while gross profit reached $4.1 billion, up 3.7%, and gross margin declined 17 basis points to 18.7%. Adjusted operating income reached $1.1 billion, up 4.1%, adjusted earnings before interest, taxes, depreciation, and amortization increased 4.7% to $1.3 billion, and adjusted earnings per share were $1.53. For fiscal 2026, adjusted earnings per share were $4.61, and free cash flow reached $2.1 billion, an increase of approximately 16%.
The growth mix in Q4 fiscal 2026 was broad: U.S. foodservice case volume increased 2.5%, with local and national cases each growing 2.6%, while international segment sales increased 6.7%, its local cases grew 4.5%, and its adjusted operating income rose 15.7%. SYGMA recorded sales growth of 3.1% and operating income growth of 11.1%, while the Sysco Brand share of local business increased 30 basis points to 46.4%. EDGAR filings for Q3 fiscal 2026 show revenue of $20.5 billion, net income of $340 million, and earnings per share of $0.71.
The average analyst price target is $84.33, within an extremely narrow range of $84 to $85, compared with the stock's 52-week range of $68.19 to $91.85; therefore, the average target is approximately 8.2% below the top of the annual range. The consensus rates the stock a “Buy,” while an August 19, 2026 report cited a forward price-to-earnings multiple of 16.1 times and a dividend yield of 2.7%; these two indicators must be weighed against the risks of leverage rising to 4.5–5.0 times, gross margin pressure, and the reliance of part of fiscal 2027 growth on the 53rd week.
Figures in the text are as of 2026-08-28; the live price is shown at the top of the page.
Sysco expects revenue growth of between 6% and 7%, bringing revenue close to $90 billion in fiscal 2027, with adjusted earnings per share of between $5.02 and $5.12. The plan includes approximately 2.5% growth in local cases in the U.S. Foodservice Operations segment, inflation of between 1.5% and 2%, and the impact of the 53rd week. The company is also targeting $100 million in net savings from its AI-supported efficiency program. Management additionally expects the international segment's earnings to continue growing at a double-digit rate.
AI360 identifies products missing from a customer's orders and provides the salesperson with no more than three priority opportunities per day, with preapproved pricing. Management can measure the execution of these opportunities and close rates for each employee, and the company linked the tool to improved customer account penetration in Q4 fiscal 2026. The tool includes a Swap & Save feature that recommends converting the customer to a Sysco Brand product that provides savings. Sysco Brand's share of local business increased 30 basis points to 46.4% during that quarter.
Automated analysis for informational purposes only — not investment advice.
The announced transaction is valued at $29.1 billion, and Sysco is targeting $250 million in procurement savings and an expansion of earnings before interest, taxes, depreciation, and amortization margin by more than 140 basis points. The company plans to expand the Restaurant Depot model into more than 125 new regions and use the stores to fulfill some urgent orders for delivery customers. In contrast, the transaction could raise leverage to a range of 4.5–5.0 times, and its financing could include shareholder dilution. The company also received a second request for information from the Federal Trade Commission, while management continues to expect closing by Q3 fiscal 2027.
International segment sales increased 6.7% in Q4 fiscal 2026, and local cases grew 4.5%. The segment's gross profit increased 7.3% and adjusted operating income rose 15.7%, making this the eleventh consecutive quarter of double-digit growth in adjusted operating income. Adjusted operating margin exceeded 4% in fiscal 2026, after being approximately 2% in 2022. Management expects the segment's earnings to continue growing at a double-digit rate in fiscal 2027.
Gross margin declined 17 basis points to 18.7% in Q4 fiscal 2026, despite gross profit increasing 3.7% to $4.1 billion. The reasons included higher fuel and inbound transportation costs, in addition to a difficult comparison with exceptional sourcing gains in the corresponding quarter of fiscal 2025. Sysco had hedged approximately 80% of its bulk fuel purchases for the following fiscal year, but fuel associated with inbound transportation does not have the same protection. Fiscal 2027 guidance assumes that the fuel conditions recorded in Q4 fiscal 2026 will continue, while targeting gross margin expansion.
Free cash flow reached $2.1 billion in fiscal 2026, an increase of 16.3%, and the company ended Q4 with a net debt-to-earnings ratio of 2.7 times. Sysco paid $1 billion in dividends and repurchased $200 million of shares during fiscal 2026. The board increased the quarterly dividend by $0.01 to $0.55 per share, extending a 57-year record of increases. However, the company suspended annual repurchases because of the Restaurant Depot transaction and has tied their resumption to achieving leverage-reduction targets.
