Sysco Corp. reported steady growth for the fourth quarter and the full fiscal year 2025 but saw a drop in profits. Despite facing challenges in the broader foodservice sector, the company is optimistic about its prospects for fiscal year 2026, with several key initiatives aimed at driving future growth.
For the fourth quarter, Sysco’s sales increased by 2.8% compared to the same period last year, totaling $21.1 billion. Excluding its divested Mexican business, sales growth was slightly higher at 3.7%. Gross profit also saw a 3.9% increase, totaling $4.0 billion. However, net earnings dropped 13.2% to $531 million, and operating income fell by 9.0% to $889 million.
For the full year, Sysco saw a 3.2% increase in sales, reaching $81.4 billion. Gross profit increased by 2.5%, totaling $15.0 billion, but net earnings fell by 6.5% to $1.8 billion. Operating income decreased by 3.6%, totaling $3.1 billion, while adjusted net earnings increased slightly by 0.8%, reaching $2.2 billion.
Kevin Hourican, Sysco’s CEO, expressed satisfaction with the company’s performance, noting that the fourth-quarter results exceeded expectations. He pointed to improved restaurant traffic and the success of Sysco’s own initiatives as key drivers of the company’s performance. “The progress accelerated throughout the quarter and has continued into July,” Hourican said, highlighting strong momentum heading into the new fiscal year.
Sysco’s international operations performed well, with sales rising by 3.6%, and local case volumes increasing by 4%. Hourican expressed confidence in continued growth in international markets, including Canada, Great Britain, Ireland, and Latin America.
In the U.S., Sysco’s foodservice segment faced some headwinds, with a 1.5% decline in case volume. However, the company’s national sales business, which serves larger customers, grew by 1.3%, thanks to strong demand from food service management, education, and travel sectors.
Sysco’s SYGMA division also posted strong results, with a 5.9% increase in sales for the quarter and 8.3% growth for the year. The division saw record growth in both sales and profits. However, Hourican warned that growth in SYGMA may moderate in fiscal 2026, as the company lapped large customer wins from the previous year.
Looking forward, Sysco is focused on several initiatives to boost growth in fiscal 2026. Hourican emphasized efforts to improve sales colleague retention and productivity, as well as new customer loyalty programs and AI-powered tools designed to increase sales effectiveness. The company is also investing in international expansion, adding resources in key markets like Toronto, Dublin, and London.
“We are confident that these efforts will drive profitable growth in 2026,” Hourican said. “Our goal is to continue improving customer engagement and sales productivity, which will ultimately support our financial targets.”
