Sysco Corp 10-Q for FY2027 Q1

Sysco Corp (SYY)

10-Q 2026-11-04 For: 2026-09-26

Added on November 04, 2026

About this 10-Q

Sysco Corp filed this 10-Q on November 4, 2026, covering the quarter ended September 26, 2026 (FY2027 Q1).

Headline figures

Quarter ended September 26, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $21.74B; up 2.8% from $21.15B a year earlier
Net income: $526M; up 10.5% from net income of $476M a year earlier
Diluted EPS: $1.09; up 10.1% from $0.99 a year earlier

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Delaware						74-1648137
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification Number)


Large Accelerated Filer	☑	Accelerated Filer	☐
Non-accelerated Filer	☐	Smaller Reporting Company	☐
(Do not check if a smaller reporting company)		Emerging growth company	☐



	PART I – FINANCIAL INFORMATION	Page No.
Item 1.	Financial Statements	1
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	28
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	46
Item 4.	Controls and Procedures	46
	PART II – OTHER INFORMATION
Item 1.	Legal Proceedings	47
Item 1A.	Risk Factors	47
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	47
Item 3.	Defaults Upon Senior Securities	48
Item 4.	Mine Safety Disclosures	48
Item 5.	Other Information	48
Item 6.	Exhibits	48

Signatures		51


	Sep. 26, 2026		Jun. 27, 2026
	(unaudited)
ASSETS
Current assets
Cash and cash equivalents	$	3,171	$	1,786
Accounts receivable, less allowances of $38 and $13	6,296		5,865
Inventories	5,455		5,338

Prepaid expenses and other current assets	484		427

Income tax receivable	6		21
Total current assets	15,412		13,437
Plant and equipment at cost, less accumulated depreciation	5,886		5,974
Other long-term assets
Goodwill	5,231		5,225
Intangibles, less amortization	899		952

Deferred income taxes	525		506
Operating lease right-of-use assets, net	1,452		1,389
Other assets	1,043		914
Total other long-term assets	9,150		8,986
Total assets	$	30,448	$	28,397

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities

Accounts payable	$	6,736	$	6,640
Accrued expenses	2,473		2,456
Accrued income taxes	186		60
Current operating lease liabilities	170		166
Current maturities of long-term debt	960		1,201
Total current liabilities	10,525		10,523
Long-term liabilities
Long-term debt	12,860		12,315
Deferred income taxes	486		456
Long-term operating lease liabilities	1,349		1,285
Other long-term liabilities	1,186		1,152
Total long-term liabilities	15,881		15,208


Shareholders’ equity
Preferred stock, par value $1 per share Authorized 1,500,000 shares, issued none	—		—
Common stock, par value $1 per share Authorized 2,000,000,000 shares, issued 777,520,579 and 765,174,900 shares	778		765
Paid-in capital	3,077		2,114
Retained earnings	14,002		13,748
Accumulated other comprehensive loss	(906)		(1,014)
Treasury stock at cost, 285,593,166 and 286,631,270 shares	(12,909)		(12,947)
Total shareholders’ equity	4,042		2,666
Total liabilities and shareholders’ equity	$	30,448	$	28,397


	13-Week Period Ended
	Sep. 26, 2026		Sep. 27, 2025
Sales	$	21,744	$	21,148
Cost of sales	17,693		17,247
Gross profit	4,051		3,901
Operating expenses	3,334		3,101
Operating income	717		800
Interest expense	261		172
Other expense (income), net (1)	(231)		28
Earnings before income taxes	687		600
Income taxes	161		124
Net earnings	$	526	$	476

Net earnings:
Basic earnings per share	$	1.09	$	0.99
Diluted earnings per share	1.09		0.99

Average shares outstanding	481,341,826		478,761,180
Diluted shares outstanding	482,945,241		480,365,666
(1) Sysco’s first quarter of fiscal 2027 included a gain of $234 million in other income related to deal contingent rate lock transactions entered into to mitigate interest rate risk on permanent debt issued to finance the purchase of JRD Unico, Inc. and Warehouse Realty, LLC (collectively, Jetro Restaurant Depot or JRD). See Note 7, “Derivative Financial Instruments.”


(Mark One)
☑			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


								Accumulated Other Comprehensive Loss
	Common Stock			Paid-in Capital		Retained Earnings				Treasury Stock
	Shares	Amount								Shares	Amounts		Totals
Balance as of June 27, 2026	765,174,900	$	765	$	2,114	$	13,748	$	(1,014)	286,631,270	$	(12,947)	$	2,666
Net earnings						526							526












Other comprehensive income (loss)								108					108
Dividends declared ($0.55 per common share)						(272)							(272)


Share-based compensation awards				9						(1,038,104)	38		47

Common stock issuance	12,345,679	13		954									967
Balance as of September 26, 2026	777,520,579	$	778	$	3,077	$	14,002	$	(906)	285,593,166	$	(12,909)	$	4,042

								Accumulated Other Comprehensive Loss
	Common Stock			Paid-in Capital		Retained Earnings				Treasury Stock
	Shares	Amount								Shares	Amounts		Totals
Balance as of June 28, 2025	765,174,900	$	765	$	1,986	$	13,061	$	(1,098)	287,678,658	$	(12,884)	$	1,830
Net earnings						476							476








Other comprehensive income (loss)								(31)					(31)
Dividends declared ($0.54 per common share)						(259)							(259)


Share-based compensation awards				24						(1,054,152)	43		67
Adjustments to redeemable non-controlling interest						(16)							(16)
Balance as of September 27, 2025	765,174,900	$	765	$	2,010	$	13,262	$	(1,129)	286,624,506	$	(12,841)	$	2,067


	Sep. 26, 2026		Jun. 27, 2026
	(In millions)
Financed payment obligations	$	79	$	83


(1)			Restricted cash primarily represents cash and cash equivalents of Sysco’s wholly owned captive insurance subsidiary, restricted for use to secure the insurer’s obligations for workers’ compensation, general liability and auto liability programs. Restricted cash is located within other assets in each consolidated balance sheet.


	13-Week Period Ended Sep. 26, 2026
	US Foodservice Operations		International Foodservice Operations		SYGMA		Other		Total
	(In millions)
Principal Product Categories
Fresh and frozen meats	$	3,066	$	678	$	651	$	—	$	4,395
Canned and dry products	2,924		774		271		—		3,969
Frozen fruits, vegetables, bakery and other	2,135		800		337		—		3,272
Dairy products	1,504		459		131		—		2,094
Poultry	1,352		324		275		—		1,951
Fresh produce	1,352		283		78		—		1,713
Paper and disposables	1,125		153		204		12		1,494
Beverage products	450		231		129		20		830
Seafood	631		139		46		—		816
Equipment and smallwares	285		61		6		133		485
Other (1)	318		266		24		117		725
Total Sales	$	15,142	$	4,168	$	2,152	$	282	$	21,744


(1)			Other sales relate to certain non-food products, including textiles and amenities for our hotel supply business, other janitorial products, and medical supplies.


	13-Week Period Ended Sep. 27, 2025
	US Foodservice Operations		International Foodservice Operations		SYGMA		Other		Total
	(In millions)
Principal Product Categories
Fresh and frozen meats	$	2,935	$	624	$	607	$	—	$	4,166
Canned and dry products	2,732		754		260		—		3,746
Frozen fruits, vegetables, bakery and other	2,070		741		326		—		3,137
Dairy products	1,584		462		143		—		2,189
Poultry	1,500		307		287		—		2,094
Fresh produce	1,314		288		75		—		1,677
Paper and disposables	1,065		141		203		12		1,421
Beverage products	418		211		157		21		807
Seafood	588		132		43		—		763
Equipment and smallwares	275		52		6		124		457
Other (1)	299		254		22		116		691
Total Sales	$	14,780	$	3,966	$	2,129	$	273	$	21,148


	Assets Measured at Fair Value as of Sep. 26, 2026
	Level 1		Level 2		Level 3		Total
	(In millions)
Assets:

Cash equivalents	$	2,481	$	—	$	—	$	2,481

Restricted cash	198		—		—		198







Total assets at fair value	$	2,679	$	—	$	—	$	2,679


	Assets Measured at Fair Value as of Jun. 27, 2026
	Level 1		Level 2		Level 3		Total
	(In millions)
Assets:

Cash equivalents	$	1,125	$	—	$	—	$	1,125



Restricted cash	331		—		—		331

Total assets at fair value	$	1,456	$	—	$	—	$	1,456


	13-Week Period Ended
	Sep. 26, 2026		Sep. 27, 2025
Cash flows from operating activities:
Net earnings	$	526	$	476
Adjustments to reconcile net earnings to cash provided by operating activities:

Share-based compensation expense	28		31
Depreciation and amortization	262		233
Operating lease asset amortization	41		37
Amortization of debt issuance and other debt-related costs	94		4

Deferred income taxes	21		(5)
Provision for losses on receivables	24		30


Gain on deal contingent rate lock transactions	(234)		—
Other non-cash items	(23)		8
Additional changes in certain assets and liabilities, net of effect of businesses acquired:
Increase in receivables	(280)		(349)
Increase in inventories	(115)		(335)
Increase in prepaid expenses and other current assets	(86)		(42)
Increase in accounts payable	70		82
Decrease in accrued expenses	(132)		(83)
Decrease in operating lease liabilities	(56)		(49)
Increase in accrued income taxes	141		66
Decrease (increase) in other assets	2		(11)
Decrease in other long-term liabilities	(5)		(7)

Net cash provided by operating activities	278		86
Cash flows from investing activities:
Additions to plant and equipment	(97)		(160)
Proceeds from sales of plant and equipment	49		24


Purchase of marketable securities	(135)		—
Proceeds from sales of marketable securities	10		7
Other investing activities	—		22

Net cash used for investing activities	(173)		(107)


	Sep. 26, 2026
	Amortized Cost Basis		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Short-Term Marketable Securities		Long-Term Marketable Securities
	(In millions)
Fixed income securities:
Corporate bonds	$	111	$	—	$	(2)	$	109	$	10	$	99
Government bonds	151		—		(4)		147		—		147
Total marketable securities	$	262	$	—	$	(6)	$	256	$	10	$	246

	Jun. 27, 2026
	Amortized Cost Basis		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Short-Term Marketable Securities		Long-Term Marketable Securities
	(In millions)
Fixed income securities:
Corporate bonds	$	76	$	—	$	—	$	76	$	16	$	60
Government bonds	62		—		(1)		61		2		59
Total marketable securities	$	138	$	—	$	(1)	$	137	$	18	$	119


	Sep. 26, 2026
	(In millions)
Due in one year or less	$	10
Due after one year through five years	124
Due after five years	122

Total	$	256


	13-Week Period Ended
	Sep. 26, 2026		Sep. 27, 2025
	(In millions)
Total amounts of (income) and expense line items presented in the consolidated results of operations in which the effects of fair value hedges are recorded	$	30	$	200
Gain or (loss) on fair value hedging relationships:
Interest rate swaps:
Hedged items	$	85	$	(19)
Derivatives designated as hedging instruments	(113)		3
Cross currency swaps and foreign currency forwards:
Hedged items	$	2	$	—
Derivatives designated as hedging instruments	(2)		—
Gain or (loss) on non-designated derivatives:
Deal-contingent interest rate locks	$	234	$	—


		Derivative Fair Value
	Balance Sheet location	Sep. 26, 2026		Jun. 27, 2026
		(In millions)
Fair Value Hedges:
Interest rate swaps	Prepaid expenses and other current assets	$	—	$	1

Interest rate swaps	Other assets	—		11
Interest rate swaps	Accrued expenses	8		2
Interest rate swaps	Other long-term liabilities	117		20
Cross currency swaps	Prepaid expenses and other current assets	—		18





Cash Flow Hedges:
Fuel swaps	Prepaid expenses and other current assets	$	84	$	32



Fuel swaps	Other assets	18		10
Fuel swaps	Accrued expenses	—		1

Fuel swaps	Other long-term liabilities	1		1
Interest rate swaps	Other long-term liabilities	—		7

Net Investment Hedges:
Cross currency swaps	Prepaid expenses and other current assets	$	24	$	17
Cross currency swaps	Other assets	58		74
Cross currency swaps	Accrued expenses	3		2
Cross currency swaps	Other long-term liabilities	99		97

Derivatives not designated as hedges:
Deal-contingent interest rate locks	Other assets	$	181	$	2
Deal-contingent interest rate locks	Other long-term liabilities	—		56


	13-Week Period Ended Sep. 26, 2026
	Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives		Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income	Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income
	(In millions)			(In millions)
Derivatives in cash flow hedging relationships:
Fuel swaps	$	61	Operating expense	$	(24)
Pre-Issuance Interest Rate Swaps	77		Interest expense	—

Total	$	138		$	(24)

Derivatives in net investment hedging relationships:
Cross currency contracts	$	(11)	N/A	$	—




Derivatives in fair value hedging relationships:
Change in excluded component of fair value hedge	$	(2)	Other expense (income)	$	—

	13-Week Period Ended Sep. 27, 2025
	Amount of Gain or (Loss) Recognized in Other Comprehensive Income on Derivatives		Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income	Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income
	(In millions)			(In millions)
Derivatives in cash flow hedging relationships:
Fuel swaps	$	13	Operating expense	$	1




Derivatives in net investment hedging relationships:
Cross currency contracts	$	18	N/A	$	—


	Sep. 26, 2026
	Carrying Amount of Hedged Assets (Liabilities)		Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Assets (Liabilities)
	(In millions)
Balance sheet location:

Long-term debt	$	(2,153)	$	125


Maturity Date	Par Value (CAD millions)	Coupon Rate		Pricing (percentage of par)
October 3, 2030	C$750	4.25	%	99.838	%
October 3, 2034	750	4.80		99.979


		13-Week Period Ended Sep. 26, 2026
	Location of Expense (Income) Recognized in Net Earnings	Before Tax Amount		Tax		Net of Tax Amount
		(In millions)
Foreign currency translation:

Foreign currency translation adjustment	N/A	$	9	$	—	$	9

Hedging instruments:
Other comprehensive income (loss) before reclassification adjustments:
Change in excluded component of fair value hedge	Other expense (income), net	(2)		—		(2)
Change in cash flow hedges	Operating expenses, Interest expense	138		34		104
Change in net investment hedges	N/A	(11)		(3)		(8)

Total other comprehensive income before reclassification adjustments		125		31		94
Reclassification adjustments:
Amortization of cash flow hedges	Interest expense	1		—		1
Pension and other postretirement benefit plans:
Other comprehensive income before reclassification adjustments:
Net actuarial gain (loss) and other adjustments arising in the current year	Other expense, net	4		1		3

Total other comprehensive income before reclassification adjustments		4		1		3
Reclassification adjustments:

Amortization of actuarial loss, net	Other expense (income), net	7		2		5
Total reclassification adjustments		7		2		5
Marketable securities:
Change in marketable securities	Other expense (income), net	(5)		(1)		(4)
Total other comprehensive income (loss)		$	141	$	33	$	108


	13-Week Period Ended Sep. 26, 2026
	Foreign Currency Translation		Hedging, net of tax		Pension and Other Postretirement Benefit Plans, net of tax		Marketable Securities, net of tax		Total
	(In millions)
Balance as of Jun. 27, 2026	$	(244)	$	25	$	(795)	$	—	$	(1,014)
Equity adjustment from foreign currency translation	9		—		—		—		9

Amortization of cash flow hedges	—		1		—		—		1
Change in net investment hedges	—		(8)		—		—		(8)
Change in cash flow hedges	—		104		—		—		104
Change in excluded component of fair value hedge	—		(2)		—		—		(2)

Amortization of unrecognized net actuarial losses	—		—		5		—		5


Net actuarial gain and other adjustments arising in the current year	—		—		3		—		3


Change in marketable securities	—		—		—		(4)		(4)
Balance as of Sep. 26, 2026	$	(235)	$	120	$	(787)	$	(4)	$	(906)


	13-Week Period Ended September 26, 2026
	U.S. Foodservice Operations		International Foodservice Operations		SYGMA		Other		Total
	(In millions)
Sales	$	15,142	$	4,168	$	2,152	$	282	$	21,744
Less:
Cost of sales	12,229		3,281		1,985		207		17,702
Operations expense	1,276		501		135		37		1,949
Selling, general & administrative expense	743		304		11		29		1,087
Total segment operating income	894		82		21		9		1,006
Global Support Center									(289)
Total operating income									717
Interest expense									261
Other expense (income), net									(231)
Earnings before income taxes									$	687


	13-Week Period Ended September 27, 2025
	U.S. Foodservice Operations		International Foodservice Operations		SYGMA		Other		Total
	(In millions)
Sales	$	14,780	$	3,966	$	2,129	$	273	$	21,148
Less:
Cost of sales	11,957		3,140		1,959		205		17,261
Operations expense	1,201		446		129		34		1,810
Selling, general & administrative expense	742		266		16		30		1,054
Total segment operating income	880		114		25		4		1,023
Global Support Center									(223)
Total operating income									800
Interest expense									172
Other expense (income), net									28
Earnings before income taxes									$	600


Maturity Date	Par Value (In millions)		Coupon Rate		Pricing (percentage of par)
October 6, 2029	$	1,750	5.450	%	99.989	%
June 6, 2031	2,000		5.600		99.927
October 6, 2033	1,500		5.800		99.841
June 6, 2036	2,000		5.950		99.654
October 6, 2046	1,000		6.400		99.476
October 6, 2056	1,750		6.500		99.856
October 6, 2066	750		6.600		99.846


Series	Maturity Date	Par Value (In millions)		Coupon Rate		Pricing (percentage of par)
Series A Notes	October 6, 2056	$	1,500	7.100	%	100.000	%
Series B Notes	October 6, 2056	1,000		7.250		100.000
Series C Notes	October 6, 2056	1,400		7.350		100.000


(1)			Other expense (income), net was income of $231 million and expense of $28 million in the first quarter of fiscal 2027 and fiscal 2026, respectively.


	13-Week Period Ended Sep. 26, 2026		13-Week Period Ended Sep. 27, 2025		Change in Dollars		% Change
	(Dollars in millions)
Sales	$	15,142	$	14,780	$	362	2.4	%
Gross profit	2,913		2,823		90		3.2
Operating expenses	2,019		1,943		76		3.9
Operating income	$	894	$	880	$	14	1.6	%

Gross profit	$	2,913	$	2,823	$	90	3.2	%
Adjusted operating expenses (Non-GAAP)	1,972		1,907		65		3.4
Adjusted operating income (Non-GAAP)	$	941	$	916	$	25	2.7	%


	Increase (Decrease)
	13-Week Period
	(Dollars in millions)
Cause of change	Percentage		Dollars
Case volume (1)	2.6	%	$	382
Deflation	(0.2)		(25)

Other	—		5
Total change in sales	2.4	%	$	362




(1)			Case volumes increased 2.6% compared to the first quarter of fiscal 2026. This volume increase resulted in a 2.6% increase in the dollar value of sales compared to the first quarter of fiscal 2026.


The discussion of our results includes certain non-GAAP financial measures, including EBITDA and adjusted EBITDA, that we believe provide important perspective with respect to underlying business trends. Other than EBITDA and free cash flow, any non-GAAP financial measures will be denoted as adjusted measures to remove (1) restructuring charges; (2) expenses associated with our various transformation initiatives; (3) severance charges; and (4) acquisition-related costs consisting of: (a) intangible amortization expense and (b) acquisition costs and due diligence costs related to our acquisitions. Adjustments provided herein for fiscal 2027 results of operations also remove amortization expense associated with debt issuance costs on a bridge loan facility and a gain on deal contingent rate lock transactions entered into to mitigate interest rate risk on permanent debt issued to finance the JRD Acquisition Transactions. No similar charges were applicable in the first quarter of fiscal 2026.

The results of our operations can be impacted due to changes in exchange rates applicable in converting local currencies to U.S. dollars. We measure our results on a constant currency basis. Constant currency operating results are calculated by translating current-period local currency operating results with the currency exchange rates used to translate the financial statements in the comparable prior-year period to determine what the current-period U.S. dollar operating results would have been if the currency exchange rate had not changed from the comparable prior-year period.

Management believes that adjusting its operating expenses, operating income, operating margin, interest expense, other (income) expense, net earnings and diluted earnings per share to remove these Certain Items, presenting its results on a constant currency basis, provides an important perspective with respect to our underlying business trends and results. It provides meaningful supplemental information to both management and investors that (1) is indicative of the performance of the company’s underlying operations and (2) facilitates comparisons on a year-over-year basis.

Sysco has a history of growth through acquisitions and excludes from its non-GAAP financial measures the impact of acquisition-related intangible amortization, acquisition costs and due-diligence costs for those acquisitions. We believe this approach significantly enhances the comparability of Sysco’s results for fiscal 2027 and fiscal 2026.

Set forth on the following page is a reconciliation of sales, operating expenses, operating income, interest expense, other (income) expense, net earnings and diluted earnings per share to adjusted results for these measures for the periods presented. Individual components of diluted earnings per share may not be equal to the total presented when added due to rounding. Adjusted diluted earnings per share is calculated using adjusted net earnings divided by diluted shares outstanding. The non-GAAP financial measures shown in the following tables should not be used as a substitute for the most comparable GAAP financial measures in assessing the company’s financial performance for the periods presented. An analysis of any non-GAAP financial measure should be used in conjunction with results presented in accordance with GAAP.



(1)			Represents a constant currency adjustment, which eliminates the impact of foreign currency fluctuations on the current year results.
(2)			Fiscal 2027 includes $80 million related to various transformation initiative costs, primarily consisting of supply chain transformation costs and changes to our business technology strategy, and $22 million related to restructuring and severance charges. Fiscal 2026 includes $46 million related to various transformation initiative costs, primarily consisting of supply chain transformation costs and changes to our business technology strategy, and $10 million related to restructuring and severance charges.
(3)			Fiscal 2027 includes $56 million in acquisition and due diligence costs and $52 million of intangible amortization expense. Fiscal 2026 includes $31 million of intangible amortization expense and $11 million in acquisition and due diligence costs.



(4)			Fiscal 2027 primarily includes $90 million of amortization expense associated with debt issuance costs on a bridge loan facility and a gain of $234 million on deal contingent rate lock transactions, both of which are related to the planned acquisition of Jetro Restaurant Depot.
(5)			The tax impact of adjustments for Certain Items is calculated by multiplying the pretax impact of each Certain Item by the statutory rates in effect for each jurisdiction where the Certain Item was incurred.
(6)			Individual components of diluted earnings per share may not equal the total presented when added due to rounding. Total diluted earnings per share is calculated using adjusted net earnings divided by diluted shares outstanding.
NM			Represents that the percentage change is not meaningful.


(1)			Primarily represents severance charges and transformation initiative costs.
(2)			Fiscal 2027 and fiscal 2026 include intangible amortization expense and acquisition costs.


(3)			Represents a constant currency adjustment, which eliminates the impact of foreign currency fluctuations on current year results.
(4)			Includes restructuring and transformation initiative costs primarily in Europe.



(5)			Includes various transformation initiative costs, primarily consisting of changes to our business technology strategy.
(6)			Represents acquisition and due diligence costs.


NM			Represents that the percentage change is not meaningful.


(1)			Fiscal 2027 and fiscal 2026 include charges related to restructuring and severance, as well as various transformation initiative costs, primarily consisting of supply chain transformation costs and changes to our business technology strategy, excluding charges related to accelerated depreciation.
(2)			Fiscal 2027 and fiscal 2026 include acquisition and due diligence costs.
(3)			Fiscal 2027 primarily includes a gain on deal contingent rate lock transactions related to the planned acquisition of Jetro Restaurant Depot.
(4)			In arriving at adjusted EBITDA, Sysco does not exclude interest income of $7 million and $6 million or non-cash stock compensation expense of $28 million and $31 million in fiscal 2027 and fiscal 2026, respectively.
(5)			Fiscal 2027 represents $231 million in GAAP other expense (income), net less $237 million in income primarily from a gain on deal contingent rate lock transactions entered into to mitigate interest rate risk on permanent debt issued to finance the purchase of Jetro Restaurant Depot. Fiscal 2026 represents $28 million in GAAP other expense (income), net.
(6)			Fiscal 2027 includes $262 million in GAAP depreciation and amortization expense, less $55 million of Non-GAAP depreciation and amortization expense primarily related to acquisitions. Fiscal 2026 includes $233 million in GAAP depreciation and amortization expense, less $33 million of Non-GAAP depreciation and amortization expense primarily related to acquisitions.
NM			Represents that the percentage change is not meaningful.


	13-Week Period Ended Sep. 26, 2026		13-Week Period Ended Sep. 27, 2025
Source of cash (use of cash)	(In millions)
Net cash provided by operating activities (GAAP)	$	278	$	86
Additions to plant and equipment	(97)		(160)
Proceeds from sales of plant and equipment	49		24
Free Cash Flow (Non-GAAP) (1)	$	230	$	(50)



Debt borrowings (repayments), net	$	401	$	36


Dividends paid	(264)		(259)


(1)			Free cash flow should not be used as a substitute for the most comparable GAAP measure in assessing the company’s liquidity for the periods presented. An analysis of any non-GAAP financial measure should be used in conjunction with results presented in accordance with GAAP. See Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Key Performance Indicators” contained in our fiscal 2026 Form 10-K for discussions regarding this non-GAAP performance metric.


Combined Parent and Guarantor Subsidiaries Summarized Balance Sheet	Sep. 26, 2026		Jun. 27, 2026
	(In millions)
ASSETS
Receivables due from non-obligor subsidiaries	$	1,023	$	274
Current assets	8,930		7,134
Total current assets	$	9,953	$	7,408
Notes receivable from non-obligor subsidiaries	$	—	$	1
Other noncurrent assets	5,631		5,459
Total noncurrent assets	$	5,631	$	5,460

LIABILITIES
Payables due to non-obligor subsidiaries	$	87	$	79
Other current liabilities	3,625		3,629
Total current liabilities	$	3,712	$	3,708
Notes payable to non-obligor subsidiaries	$	405	$	388
Long-term debt	12,286		12,115
Other noncurrent liabilities	1,832		1,704
Total noncurrent liabilities	$	14,523	$	14,207