### At a Glance Sysco’s Q4 2026 results exceeded expectations, with management guiding for 9%–11% adjusted EPS growth in FY2027 and announcing an AI-driven cost-saving plan targeting $100 million within the fiscal year.
Key Data Q4 revenue grew 4.7% to over $22 billion, with adjusted EPS of $1.53, beating prior estimates. US Foodservice (USFS) local customer volumes rose 2.6%, while international adjusted operating profit increased 15.7% — marking the 11th consecutive quarter of double-digit growth.
Business Progress Local business growth accelerated, with June being the strongest month of the quarter, and full-year local customer volume growth improved from 0.5% in the first half to 2.9% in the second half. Sysco’s private-label penetration increased 30 basis points to 46.4%, with value-tier product sales growing four times faster than the overall business. The AI sales tool AI360 enhanced sales force productivity and customer penetration, and the company’s independent customer business grew faster than the industry. International operations posted volume growth across all regions, with adjusted operating margins doubling from approximately 2% in FY2022 to over 4% in FY2026.
Guidance & Outlook FY2027 guidance: revenue growth of 6%–7% to approximately $90 billion, USFS local volume growth of about 2.5%, and adjusted EPS growth of 9%–11% to $5.02–$5.12. The guidance includes an approximately 2% contribution from the 53rd week; excluding that, EPS growth sits at the high end of the long-term algorithm. The company launched an AI-driven efficiency improvement plan, targeting $100 million in in-year cost savings in FY2027 (with a run rate of approximately $160 million). Q1 adjusted EPS is expected to be $1.18–$1.20.
Risk/Highlight Signals Management remains confident in the approval of the Restaurant Depot acquisition, expected to close in Q3 of FY2027. The company has suspended share repurchases but is committed to rapid deleveraging through strong cash flow. Management believes the AI transformation and cost-saving initiatives are sufficient to offset the EPS impact of the buyback suspension and could drive sustained margin expansion going forward.