Sysco (NYSE:SYY) Shares Gap Up on Strong Earnings

Sysco Corporation (NYSE:SYY) gapped up prior to trading on Tuesday following a better than expected earnings announcement. The stock had previously closed at $75.63, but opened at $78.92. Sysco shares last traded at $80.0450, with a volume of 2,609,912 shares changing hands.

The company reported $0.99 earnings per share for the quarter, beating the consensus estimate of $0.98 by $0.01. The business had revenue of $20.76 billion for the quarter, compared to the consensus estimate of $20.80 billion. Sysco had a net margin of 2.21% and a return on equity of 112.04%. The company’s revenue for the quarter was up 3.0% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.93 earnings per share. Sysco has set its FY 2026 guidance at 4.600-4.600 EPS.

Sysco Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, January 23rd. Stockholders of record on Friday, January 2nd were paid a $0.54 dividend. The ex-dividend date of this dividend was Friday, January 2nd. This represents a $2.16 dividend on an annualized basis and a dividend yield of 2.6%. Sysco’s dividend payout ratio is 57.91%.

More Sysco News

Here are the key news stories impacting Sysco this week:

• Positive Sentiment: Raised full‑year guidance to $4.60 and said it expects to hit the high end of its prior range — a clear signal management is confident in H2 revenue/margin trends. Sysco Reports Second Quarter Fiscal Year 2026 Results
• Positive Sentiment: Adjusted EPS/adjusted EBITDA and adjusted operating income rose (adjusted EPS $0.99), and management highlighted margin strength despite higher food costs — supports better earnings power. SYY Q2 Earnings Top Estimates on Margin Strength & Local Volume Growth
• Positive Sentiment: U.S. local volumes improved and international growth strengthened; management sees accelerating growth in the second half of fiscal 2026 — a demand recovery narrative investors like. Why Sysco Stock Surged Today
• Neutral Sentiment: Revenue grew modestly (≈+3% YoY), showing steady but not breakout top‑line momentum. Sysco Reports Second Quarter Fiscal Year 2026 Results
• Neutral Sentiment: Some data feeds flagged differences between GAAP and adjusted figures (adjusted EPS beat while GAAP diluted EPS was lower), so headline “beat/miss” takes depend on which metric you use. Sysco Releases Q2 2026 Earnings: Revenue Up 3% but EPS Misses Estimates
• Negative Sentiment: GAAP operating income and net income fell year‑over‑year and GAAP EPS declined (reported GAAP EPS lower than adjusted), highlighting near‑term profit volatility. Sysco Reports Second Quarter Fiscal Year 2026 Results
• Negative Sentiment: Analysts caution macro headwinds (higher labor/compensation and uneven restaurant traffic) and some say the stock is near fair value, which could limit upside absent stronger demand. Sysco: No Rush To Buy This Dividend Champion

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on SYY. Morgan Stanley reduced their price target on shares of Sysco from $88.00 to $85.00 and set an “equal weight” rating on the stock in a research report on Tuesday, January 20th. Wall Street Zen lowered shares of Sysco from a “buy” rating to a “hold” rating in a research note on Saturday, October 25th. Weiss Ratings reiterated a “hold (c+)” rating on shares of Sysco in a report on Monday, December 29th. Guggenheim boosted their price target on Sysco from $87.00 to $89.00 and gave the stock a “buy” rating in a research report on Monday, October 6th. Finally, Barclays upped their target price on Sysco from $86.00 to $88.00 and gave the company an “overweight” rating in a research report on Wednesday, January 7th. Eight investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $85.75.

Institutional Investors Weigh In On Sysco

A number of large investors have recently made changes to their positions in the stock. 1620 Investment Advisors Inc. grew its position in Sysco by 2.6% in the third quarter. 1620 Investment Advisors Inc. now owns 4,904 shares of the company’s stock worth $404,000 after acquiring an additional 126 shares during the period. MassMutual Private Wealth & Trust FSB boosted its stake in shares of Sysco by 0.3% in the third quarter. MassMutual Private Wealth & Trust FSB now owns 40,852 shares of the company’s stock valued at $3,364,000 after purchasing an additional 130 shares during the period. Facet Wealth Inc. boosted its position in Sysco by 1.2% in the 2nd quarter. Facet Wealth Inc. now owns 10,671 shares of the company’s stock valued at $849,000 after buying an additional 131 shares during the period. Ellis Investment Partners LLC boosted its stake in shares of Sysco by 4.9% in the 2nd quarter. Ellis Investment Partners LLC now owns 2,820 shares of the company’s stock valued at $214,000 after buying an additional 133 shares during the period. Finally, Silver Oak Securities Incorporated lifted its stake in Sysco by 4.0% in the third quarter. Silver Oak Securities Incorporated now owns 3,493 shares of the company’s stock worth $288,000 after acquiring an additional 134 shares during the last quarter. 83.41% of the stock is currently owned by hedge funds and other institutional investors.

Sysco Trading Up 11.0%

The firm has a market capitalization of $40.18 billion, a price-to-earnings ratio of 22.50, a PEG ratio of 2.49 and a beta of 0.61. The company has a debt-to-equity ratio of 5.54, a quick ratio of 0.65 and a current ratio of 1.15. The company has a 50-day moving average price of $75.14 and a 200-day moving average price of $77.78.

Sysco Company Profile

Sysco Corporation (NYSE: SYY) is a global foodservice distribution company that supplies a broad range of food and related products to restaurants, healthcare and educational facilities, lodging establishments, and other foodservice customers. Its core business is the procurement, warehousing and delivery of fresh, frozen and dry food products, complemented by non-food items such as paper goods, kitchen equipment, cleaning supplies and tabletop products. Sysco serves customers through an extensive network of distribution centers and dedicated delivery fleets, positioning itself as a one-stop supplier for operators of all sizes.

Founded in 1969 and headquartered in Houston, Texas, Sysco has grown through both organic expansion and acquisitions.