Sysco (NYSE:SYY) Shares Gap Up Following Better-Than-Expected Earnings

Sysco Corporation (NYSE:SYY)’s stock price gapped up before the market opened 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 traded.

The company reported $0.99 EPS for the quarter, topping analysts’ consensus estimates of $0.98 by $0.01. The company had revenue of $20.76 billion for the quarter, compared to the consensus estimate of $20.80 billion. Sysco had a return on equity of 109.21% and a net margin of 2.17%.The firm’s revenue for the quarter was up 3.0% on a year-over-year basis. During the same period in the previous year, the business 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 announced a quarterly dividend, which was paid on Friday, January 23rd. Investors of record on Friday, January 2nd were issued 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 (DPR) is 57.91%.

Trending Headlines about Sysco

Here are the key news stories impacting Sysco this week:

• Positive Sentiment: Management raised FY2026 EPS guidance to $4.60 and highlighted improving U.S. volume trends and margin progress — a clear catalyst for the stock’s upward move. Sysco Reports Second Quarter Fiscal Year 2026 Results
• Positive Sentiment: Adjusted Q2 results beat on the key metric (adjusted EPS $0.99 vs. ~$0.98 consensus) and adjusted EBITDA/adjusted net earnings expanded year‑over‑year, supporting the bullish narrative. SYY Q2 Earnings Top Estimates on Margin Strength & Local Volume Growth
• Positive Sentiment: Multiple sell‑side firms raised price targets and ratings after the results (examples: Truist to $94/buy, Jefferies to $95/buy, Wells Fargo to $92/overweight, JPMorgan to $87/overweight), which boosts analyst‑driven demand. Sysco Analysts Raise Their Forecasts Following Strong Q2 Earnings
• Neutral Sentiment: Top‑line growth was modest (sales +3.0% YoY; U.S. foodservice/local volumes only slightly higher), so upside depends on whether volume and pricing acceleration sustain into H2. Sysco Reports Second Quarter Fiscal Year 2026 Results
• Negative Sentiment: GAAP operating income and net earnings declined year‑over‑year even as adjusted figures improved, leaving some investors cautious about near‑term volatility and accounting‑line noise. Sysco: No Rush To Buy This Dividend Champion
• Negative Sentiment: Margins still face pressure from higher food and labor costs and the company carries significant leverage, so upside depends on continued margin recovery and stronger volume momentum. Why Sysco Stock Surged Today

Wall Street Analyst Weigh In

Several research firms have commented on SYY. Morgan Stanley lowered their price objective on shares of Sysco from $88.00 to $85.00 and set an “equal weight” rating for the company in a research report on Tuesday, January 20th. Barclays increased their price target on shares of Sysco from $88.00 to $92.00 and gave the company an “overweight” rating in a report on Wednesday. UBS Group boosted their price objective on Sysco from $90.00 to $95.00 and gave the stock a “buy” rating in a research note on Wednesday. Guggenheim reaffirmed a “buy” rating and issued a $91.00 price objective on shares of Sysco in a research note on Wednesday. Finally, BMO Capital Markets reiterated an “outperform” rating on shares of Sysco in a report on Wednesday. Nine research analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $89.38.

Institutional Trading of Sysco

Several institutional investors and hedge funds have recently made changes to their positions in the business. Vanguard Group Inc. lifted its holdings in Sysco by 2.0% during the 2nd quarter. Vanguard Group Inc. now owns 62,691,177 shares of the company’s stock valued at $4,748,230,000 after buying an additional 1,226,381 shares in the last quarter. State Street Corp increased its position in shares of Sysco by 0.9% during the third quarter. State Street Corp now owns 26,669,576 shares of the company’s stock worth $2,195,973,000 after acquiring an additional 246,542 shares during the period. Capital Research Global Investors raised its stake in shares of Sysco by 0.3% during the third quarter. Capital Research Global Investors now owns 18,360,707 shares of the company’s stock valued at $1,511,821,000 after acquiring an additional 46,040 shares in the last quarter. Geode Capital Management LLC boosted its holdings in shares of Sysco by 1.5% in the second quarter. Geode Capital Management LLC now owns 12,551,872 shares of the company’s stock valued at $946,694,000 after purchasing an additional 183,179 shares during the period. Finally, Norges Bank bought a new position in Sysco in the second quarter worth approximately $493,686,000. 83.41% of the stock is currently owned by institutional investors.

Sysco Price Performance

The company has a debt-to-equity ratio of 5.45, a quick ratio of 0.65 and a current ratio of 1.30. The firm has a fifty day simple moving average of $75.30 and a 200 day simple moving average of $77.82. The company has a market capitalization of $39.98 billion, a PE ratio of 22.38, a P/E/G ratio of 2.67 and a beta of 0.61.

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.