The sales decline was driven primarily by the closure of the company’s distribution center in Allentown, Pennsylvania, completed during the first quarter of fiscal 2026, as well as the wind-down of short-term project work within its natural products segment.
For distributors, the revised data reinforces concerns that the second half of 2026 could bring slower order growth, increased pricing pressure, and tighter customer spending across multiple end markets.
The real risk and opportunity live upstream: in how quotes are profiled, built, priced, and delivered.
The Newport News, Virginia-based distributor, said net sales for the quarter ending March 31 increased 3.6% year over year to $7.47 billion from $7.21 billion in the prior quarter.
The specialty distributor said revenue rose 3.8% to $496.0 million for the quarter ended March 31, from $478.0 million a year earlier.
For the first nine months of fiscal 2026, revenue rose 17% to $190.6 billion from $162.4 billion in the same period last year.
Growth in the quarter was also supported by acquisitions. In March, Graybar acquired Broken Arrow Electric Supply, expanding its presence in Oklahoma. The deal marks the company’s 20th acquisition over the past decade.
For the first nine months of fiscal 2026, Sysco reported sales of $62.4 billion, up 3.6% from $60.2 billion a year earlier.
For the first six months of fiscal 2026, net sales increased 3.5% to $1.88 billion from $1.82 billion in the prior-year period.
Profitability is the most important metric for any distributor.