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SYY · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is Sysco Corporation (SYY) stock moving?
Sysco's fiscal Q1 2027 report on Nov 3 showed adjusted EPS of $1.19 in line with estimates, but sales missed. Management affirmed FY27 adjusted EPS guidance of $5.02-$5.12 against a $5.05 consensus, while narrowing sales guidance to $89.626B, the low end of the prior range and below the $89.879B estimate. Operating metrics were mixed to solid: U.S. foodservice case volume rose 2.6%, gross margin was 18.6% (up 18 bps), free cash flow was $230M versus $(50)M a year earlier, and FY27 guidance includes roughly $100M of AI-enabled savings weighted to H2. Quality of earnings is a caveat, since Q1 included a $234M gain on rate locks tied to Jetro Restaurant Depot acquisition financing, and the CEO said a cyclospora outbreak hurt the middle of the quarter. The stock fell from $81.74 on Nov 2 to $74.11 on Nov 3, a 9.3% drop on about 9.5M shares versus roughly 3M in the prior sessions. It has since recovered to $78.38 on Nov 9 and $77.63 on Nov 10, still about 5% below the pre-report close, with volume back near 2.8M. Analyst sentiment turned more cautious: JPMorgan cut its target to $92 from $95 and Citigroup kept Neutral with an $84 target. A shareholder rights firm announced an investigation on Nov 8, but the item contains no specific allegations. The Oct 6 debt raise of $10.75B senior notes and $3.9B junior subordinated notes funds the Jetro deal and adds leverage to watch. Overall the picture is balanced: guidance held and the rebound is orderly, but sales softness, lower targets and the financing overhang weigh on near-term sentiment.
News behind the analysis
- Sysco Reports First Quarter 2027 ResultsSales rose 2.8% and net earnings rose 10.5% in the fiscal first quarter ended Sep 26, 2026. The company reaffirmed FY27 adjusted EPS and local volume guidance.
- Sysco Q1 Earnings: Sales Miss Estimates, Full-Year EPS Outlook UnchangedQ1 adjusted EPS of $1.19 was in line with estimates, but sales missed. The company reaffirmed FY27 EPS growth guidance of 9%-11%.
- Sysco Affirms FY2027 Adj EPS Guidance of $5.02-$5.12 vs $5.05 Est; Narrows FY2027 Sales Guidance from $89.626B-$90.472B to $89.626B vs $89.879B EstAdjusted EPS guidance was affirmed at $5.02-$5.12 against a $5.05 consensus. Sales guidance was narrowed to the low end of the prior range, $89.626B, below the $89.879B estimate.
- Sysco Names Brandon Sewell as Executive Vice President and Chief Financial OfficerBrandon Sewell, interim CFO since March 2026, was named permanent CFO effective Nov 1, 2026. He has been with Sysco since 2014.
- Sysco CEO Says Cyclospora Outbreak Had An Adverse Impact On The Middle Of Q1The CEO said a cyclospora outbreak weighed on business in the middle of the first quarter. The company's guidance still assumes approximately 2.5% local volume growth.
- Sysco Says FY27 Guidance Includes ~$100M Of AI-Enabled Net Cost Savings, Weighted To H2FY27 guidance includes roughly $100M of net cost savings from AI-enabled initiatives, mostly in the second half. The company also kept its FY27 local volume growth assumption at about 2.5%.
- JPMorgan Adjusts Price Target on Sysco to $92JPMorgan lowered its price target on Sysco from $95 to $92 after the quarterly report.
- Citigroup Maintains Neutral on Sysco, Lowers Price Target to $84Citigroup kept a Neutral rating on Sysco and lowered its price target to $84. This is below the Nov 10 close of $77.63 by about 8%.
- Shareholder Rights Litigation Firm Announces Investigation into Sysco CorporationA shareholder rights firm announced an investigation into Sysco over potential securities law violations. No specific allegations or charges were described in the item.
About Sysco Corporation
Sysco is the world's largest foodservice distributor, based in Houston. It delivers food, kitchen supplies and equipment to restaurants, hospitals, schools, hotels and other places that serve meals away from home, and had roughly $84 billion in sales in fiscal 2026 (approximate).
How it makes money
Sysco buys food and related products in huge volumes and resells them at a markup, earning a thin gross margin of about 18–19% (approximate). Most of its sales come from the U.S. Foodservice segment, which serves both independent local restaurants (higher margin) and large national chains. The rest comes from the International segment (Canada, Europe and other markets) and SYGMA, which delivers to chain restaurants. Its own Sysco-brand products earn better margins and make up roughly 46% of local U.S. sales (approximate).
What usually moves SYY
- Restaurant traffic and dining-out demand
- Local case volume growth
- Food cost inflation or deflation
- Fuel, labor and delivery costs
- Acquisitions and cost-saving initiatives