We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Sysco Q3 Earnings on the Horizon: Essential Insights for Investors
Read MoreHide Full Article
Key Takeaways
Sysco is expected to post 5.1% revenue growth for Q3, driven by improving U.S. Foodservice volumes.
SYY's growth is supported by stronger salesforce productivity and digital tool adoption, boosting volumes.
International segment momentum and margin gains might have been offset by incentive compensation pressure.
Sysco Corporation (SYY - Free Report) is likely to witness top-line growth when it reports third-quarter fiscal 2026 earnings on April 28. The Zacks Consensus Estimate for revenues is pegged at $20.59 billion, indicating a 5.1% rise from the prior-year quarter’s reported figure.
The consensus mark for earnings has remained unchanged over the past 30 days at 95 cents a share, which implies 1% decline from the figure reported in the year-ago quarter. SYY has a trailing four-quarter earnings surprise of 0.7%, on average.
Sysco Corporation Price, Consensus and EPS Surprise
Factors Likely to Influence SYY’s Upcoming Results
Sysco’s fiscal third-quarter performance is likely to have been supported by steady improvement in its core U.S. Foodservice business. In the fiscal second quarter, local case volumes increased 1.2%, marking a third consecutive quarter of sequential improvement. Management indicated that volume trends have been strengthening through the quarter and into January, reflecting continued momentum in the business. This momentum is likely to have been supported by improving salesforce productivity, better customer retention and increased adoption of digital selling tools. The Zacks Consensus Estimate suggests an increase of 4.8% in the U.S. Foodservice Operations revenue.
The International segment is also expected to have supported revenue growth in the fiscal third quarter, backed by strong volume momentum and solid execution across geographies. The segment delivered robust growth in the fiscal second quarter, with healthy local case expansion and double-digit operating income growth, reflecting continued strength across international markets. The Zacks Consensus Estimate suggests an increase of 7.8% in the International Foodservice Operations revenue.
On the profitability front, the fiscal third quarter is expected to have benefited from continued gross margin expansion and productivity gains. In the fiscal second quarter, Sysco delivered margin improvement driven by strategic sourcing efforts and disciplined cost management. These factors, along with ongoing supply-chain efficiencies and improved workforce retention, are likely to have supported earnings growth in the fiscal third quarter.
While the aforementioned factors have been encouraging, results are expected to be partly impacted by incentive compensation headwinds. Management indicated that these costs have been weighing on year-over-year earnings comparisons, which is likely to have limited bottom-line expansion in the upcoming quarter.
Earnings Whispers for SYY
Our proven model does not conclusively predict an earnings beat for Sysco this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Sysco carries a Zacks Rank #3 and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
The Zacks Consensus Estimate for BJ's Wholesale Club’s upcoming quarter’s EPS is pegged at $1.05, which implies 7.9% decline year over year. The consensus estimate for the quarterly revenues is pinned at $5.39 billion, which indicates 4.6% growth from the figure reported in the prior-year quarter. BJ delivered a trailing four-quarter earnings surprise of 9.4%, on average.
The J. M. Smucker Company (SJM - Free Report) currently has an Earnings ESP of +2.97% and a Zacks Rank of 3. The consensus mark for the upcoming quarter’s revenues is pegged at $2.28 billion, which indicates an increase of 6.5% from the figure reported in the year-ago quarter.
The Zacks Consensus Estimate for J. M. Smucker’s quarterly earnings per share of $2.66 implies growth of 15.2% from the figure reported in the year-ago quarter. SJM delivered a trailing four-quarter earnings surprise of 1%, on average.
McCormick & Company, Incorporated (MKC - Free Report) currently has an Earnings ESP of +0.43% and a Zacks Rank of 3. The consensus estimate for the quarterly revenues is pegged at $1.9 million, which indicates a surge of 14.5% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for McCormick’s upcoming quarter’s EPS is pegged at 71 cents, which implies a 2.9% increase year over year. MKC delivered a trailing four-quarter earnings surprise of roughly 4.5%, on average.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Sysco Q3 Earnings on the Horizon: Essential Insights for Investors
Key Takeaways
Sysco Corporation (SYY - Free Report) is likely to witness top-line growth when it reports third-quarter fiscal 2026 earnings on April 28. The Zacks Consensus Estimate for revenues is pegged at $20.59 billion, indicating a 5.1% rise from the prior-year quarter’s reported figure.
The consensus mark for earnings has remained unchanged over the past 30 days at 95 cents a share, which implies 1% decline from the figure reported in the year-ago quarter. SYY has a trailing four-quarter earnings surprise of 0.7%, on average.
Sysco Corporation Price, Consensus and EPS Surprise
Sysco Corporation price-consensus-eps-surprise-chart | Sysco Corporation Quote
Factors Likely to Influence SYY’s Upcoming Results
Sysco’s fiscal third-quarter performance is likely to have been supported by steady improvement in its core U.S. Foodservice business. In the fiscal second quarter, local case volumes increased 1.2%, marking a third consecutive quarter of sequential improvement. Management indicated that volume trends have been strengthening through the quarter and into January, reflecting continued momentum in the business. This momentum is likely to have been supported by improving salesforce productivity, better customer retention and increased adoption of digital selling tools. The Zacks Consensus Estimate suggests an increase of 4.8% in the U.S. Foodservice Operations revenue.
The International segment is also expected to have supported revenue growth in the fiscal third quarter, backed by strong volume momentum and solid execution across geographies. The segment delivered robust growth in the fiscal second quarter, with healthy local case expansion and double-digit operating income growth, reflecting continued strength across international markets. The Zacks Consensus Estimate suggests an increase of 7.8% in the International Foodservice Operations revenue.
On the profitability front, the fiscal third quarter is expected to have benefited from continued gross margin expansion and productivity gains. In the fiscal second quarter, Sysco delivered margin improvement driven by strategic sourcing efforts and disciplined cost management. These factors, along with ongoing supply-chain efficiencies and improved workforce retention, are likely to have supported earnings growth in the fiscal third quarter.
While the aforementioned factors have been encouraging, results are expected to be partly impacted by incentive compensation headwinds. Management indicated that these costs have been weighing on year-over-year earnings comparisons, which is likely to have limited bottom-line expansion in the upcoming quarter.
Earnings Whispers for SYY
Our proven model does not conclusively predict an earnings beat for Sysco this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Sysco carries a Zacks Rank #3 and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
BJ's Wholesale Club Holdings, Inc. (BJ - Free Report) currently has an Earnings ESP of +1.69% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for BJ's Wholesale Club’s upcoming quarter’s EPS is pegged at $1.05, which implies 7.9% decline year over year. The consensus estimate for the quarterly revenues is pinned at $5.39 billion, which indicates 4.6% growth from the figure reported in the prior-year quarter. BJ delivered a trailing four-quarter earnings surprise of 9.4%, on average.
The J. M. Smucker Company (SJM - Free Report) currently has an Earnings ESP of +2.97% and a Zacks Rank of 3. The consensus mark for the upcoming quarter’s revenues is pegged at $2.28 billion, which indicates an increase of 6.5% from the figure reported in the year-ago quarter.
The Zacks Consensus Estimate for J. M. Smucker’s quarterly earnings per share of $2.66 implies growth of 15.2% from the figure reported in the year-ago quarter. SJM delivered a trailing four-quarter earnings surprise of 1%, on average.
McCormick & Company, Incorporated (MKC - Free Report) currently has an Earnings ESP of +0.43% and a Zacks Rank of 3. The consensus estimate for the quarterly revenues is pegged at $1.9 million, which indicates a surge of 14.5% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for McCormick’s upcoming quarter’s EPS is pegged at 71 cents, which implies a 2.9% increase year over year. MKC delivered a trailing four-quarter earnings surprise of roughly 4.5%, on average.