SYY US S&P 500Russell 1000 Earnings call · transcribed from the recording
Sysco (SYY) · Q2 2026 results and valuation
Share price: $76.94 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · fiscal Q4 2026 · published 4 Aug 2026 and 28 Apr 2026
Net income up 62.1% on the previous quarter. Management sounded cautious, though noticeably more positive answering analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+62.1%
Net income vs Q1 2026
Outlook given
Net income 551.0M vs 340.0M
Revenue +7.8%
Against the same quarter last year (Q2 2025) it is +3.8% — part of the move on last quarter is seasonal.
2 · How management spoke
Cautious
Among the least upbeat of all company calls
Answers to analysts: very upbeat, and more positive than the script.
Last call it was different: script and answers matched.
3 · What stood out
Guidance
The revenue growth will be enabled by approximately 2.5% local case growth in Sysco's USFS segment.
Valuation
Is Sysco undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2026-06-27), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 3.5% growth a year (3-year revenue growth), the model's fair value is $36.37 a share — the stock trades 112% above it. Today's price assumes 10.6% growth a year.
Current price
$76.94
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+10.6% for 10 yrs
Fair value / share
$36.37
Buy below
$27.28
Price vs fair value
Overvalued 112%
Price vs buy-below price
Overvalued 182%
Management expects
Revenue +2.5% · from the Q2 2026 report: “The revenue growth will be enabled by approximately 2.5% local case growth in our USFS segment. We expect to deliver revenue growth of 6% to 7% for the year.…”
A guidance figure for revenue, usually one year ahead, not a 10-year free-cash-flow rate.
Read between the lines
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Guidance
For fiscal 2027, Sysco expects to deliver positive case volume growth for national contract customers despite a macro foot traffic environment that remains challenged.
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Figure
From a top line perspective, Sysco delivered over $22 billion of total revenue, a growth rate of 4.7%.
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Fading
Sysco expects to successfully execute the Restaurant…
Source quote
“In addition, we expect to successfully execute the Restaurant... We plan to maintain the positive momentum in our underlying business at Sysco.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Management was more positive answering analysts than in its script — usually a sign it was comfortable with the details it was asked about.
Sentences that drove the tone
“We expect to see continued pressure with national restaurants given traffic declines to that segment and the overall pressure that national customers, restaurant customers specifically are experiencing.”
“Corporate adjusted expenses were down 9.8%, which included benefits from the previously discussed cost-out efforts implemented earlier in the year as well as lower insurance and other costs.”
“During the quarter, elevated fuel costs impacted both food input costs and inbound transportation expenses.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-27)
| Metric | Q2 2026period end 2026-06-27 | Q1 2026period end 2026-03-28 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 22.12B | 20.52B | +7.8% | 21.14B | +4.7% |
| Gross profit | 4.13B | 3.81B | +8.4% | 3.99B | +3.7% |
| Operating income | 983.0M | 619.0M | +58.8% | 888.0M | +10.7% |
| Net income | 551.0M | 340.0M | +62.1% | 531.0M | +3.8% |
| EPS | 1.15 | 0.71 | +62.0% | 1.09 | +5.5% |
| P/E today 20.4 | 22.6 | 22.7 | −0.1 | 20.1 | +2.5 |
Topics
Most discussed now
- As Sysco mentioned last quarter, it has launched meaningful efficiency improvement efforts powered by AI technology modernization that…
- Supply chain expenses grew at a slower rate than revenue and gross profits.
- Sysco Your Way and Perks 2.0, for example, delivered solid revenue growth.
- The outperformance included healthy case volume growth from both local and national customers in Sysco's USFS segment and continued…
- Sysco's strengthening top line trends, combined with solid supply chain productivity gains, helped to drive year-over-year profit growth…
Faded since Q1 2026
- Fading I understand the importance of strong, consistent delivery of financial results, and going forward, I'm excited to add value to...
- Fading Q3 benefited from continued tailwinds from Sysco's strategic sourcing...
- Fading Sysco has substantially improved its local case performance over the past year and know how important this KPI is to...
- Fading Sysco is incredibly excited about the planned addition of Restaurant Depot to the Sysco family and look forward to sharing additional...
Latest announcements
Official filings, newest first.
- Results of operations; Director or officer change; Regulation FD disclosure · SEC 8-K
- Material agreement; New financial obligation · SEC 8-K
- Material agreement; New financial obligation · SEC 8-K
- Other events · SEC 8-K
- Other events · SEC 8-K
- Other events · SEC 8-K
- Regulation FD disclosure · SEC 8-K
- Regulation FD disclosure · SEC 8-K