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2025 Annual Report
Letter from the Chair of the Board Board and and CEO CEO the Kevin Hourican Chair of the Board and Chief Executive O cer Dear Fellow Stockholders, As I write to you for the sixth time in my tenure as CEO, I nd myself re ecting on the remarkable journey we ve taken together. We tackled the challenges that COVID presented our industry head-on. We invested to advance our technology, strengthen our supply chain, and improve our customer experience. We developed and implemented a growth strategy that has resulted in four consecutive years of pro table market share gains. Through it all, we have remained accountable in our unwavering commitment to serving our colleagues and customers. Along the way, we ve gained invaluable insights, like the importance of nurturing customer relationships and the need to balance speed and agility with thoughtful change management. Our progress as a company is a testament to the dedication of our 75,000 colleagues and the strength of our customer relationships, which remain at the heart of everything we do. We are committed to being the industry leader in foodservice distribution, bringing culinary and supply chain innovation to our customers. Strong Financial Results, Delivered By Disciplined Operators(1) In scal year 2025, we advanced our Sysco playbook while delivering solid year-over-year performance and reinforcing our foundation for long-term growth. We generated $81.4 billion in revenue, re ecting 3.2% year-over-year growth, achieved $3.1 billion in operating income and $3.5 billion in adjusted operating income, up 1.2%. We delivered EPS of $3.73 and adjusted EPS of $4.46, a 3.5% increase, along with $2.5 billion in cash ow from operations and $1.8 billion in free cash ow. Our robust operating cash ow and operational rigor enabled us to return approximately $2.25 billion to shareholders through dividends and share repurchases. We have grown our dividend for 56 years and are proud of our investment grade balance sheet. At the same time, we invested in our core business to create long-term pro table growth through Supply Chain capacity expansion and modernizing our suite of customer-facing systems. Compelling International Performance & Improving U.S./Domestic Business Results z International: Our International division posted its seventh consecutive quarter of double-digit pro t growth, with adjusted operating income growing signi cantly faster than the total company over the past few years. We are successfully running the Sysco playbook globally, expanding local sales resources, modernizing our supply chain, and enhancing customer-facing technology. We expect this momentum to continue into scal 2026. Sysco International is a growth engine within the company. z U.S. National: Our U.S. Foodservice national sales business delivered strong pro t growth, increasing our pro t rate three times higher than sales growth. This outcome was delivered by thoughtful customer mix optimization and by implementing win/win contract structures with our customers that enhance e ciency and pro tability. z U.S. Local: Our U.S. Local business underperformed versus our expectations in scal 2025, but greatly improved throughout the year. We clearly understand the root cause of our challenges in 2025 and implemented initiatives to directly address those challenges. To that end, scal Q4 2025 was the strongest period of the year, and the positive momentum has accelerated further as we have entered scal 2026. We have stabilized our sales colleague population, invested in incremental sales professional headcount, and are strengthening overall sales professional e ectiveness. Compelling initiatives like Perks 2.0, AI360, Pricing Agility, and Sysco Your Way are improving the service we provide to our customers, increasing colleague productivity, and strengthening our business results. As we enter scal 2026, we are seeing positive local case growth in our Local business and expect further momentum to be delivered throughout the year. (1) This paragraph contains non-GAAP financial measures, which are denoted as adjusted. See pages 31 through 35 in the attached Form 10-K for a reconciliation of these non-GAAP measures to the corresponding GAAP results and an explanation of the adjustments that we have made in order to calculate these adjusted measures.
z Specialty foods: Our over $9 billion Specialty business is the second growth engine within Sysco, growing both top- and bottom-line faster than the total company. We have continued to expand our specialty o erings in produce, protein, Italian, and Asian foods. Our success is enabling us to pro tably increase market share in these fast-growing and higher pro t sectors of the overall Food Away from Home landscape. We expect our Specialty business to grow approximately two times the rate of our core broadline segment for years to come. A Confident Path Forward As we turn the page to scal 2026, Sysco is entering the year with strong momentum and nancial performance. In addition to our expectations to sell more than $85 billion of food and related products, we plan to expand our market share and increase our overall pro tability in 2026. Our high degree of con dence in our external guidance is grounded in the disciplined execution of our team, and compelling initiatives that will advance our Recipe For Growth strategy. Delivering on Our Promise of Performance At Sysco, we are foodies at heart. We care deeply about our colleagues, our customers, and our industry. This passion fuels our commitment to excellence and drives us to deliver strong results. For us, it s not just about meeting the expectations of commercial kitchens, it s about exceeding those expectations by providing culinary innovations, the freshest of ingredients, and a supply chain that delivers on-time and in-full, every time. We remain committed to disciplined capital allocation. As a proud Dividend Aristocrat, we expect to deliver a 6-cent per share increase in the full year dividend for scal 2026, marking our 56th year of dividend growth. We plan to return approximately $1 billion to shareholders through dividends and will invest approximately $1 billion in a combination of stock buybacks and M&A. Sysco Continues to Deliver Value Through Strategic Strength While we anticipate a cautious end consumer in 2026, Sysco is uniquely positioned to thrive in a dynamic market. Our diversi ed customer base, global footprint, strength of balance sheet, and industry-leading capabilities give us the tools to succeed regardless of the macro environment. We are excited about the year ahead and remain committed to unlocking value for our customers, colleagues, and shareholders. Our future is bright. I am proud of what we ve accomplished and energized by what lies ahead. Thank you for your continued support and trust in Sysco. Kevin Hourican Chair of the Board and Chief Executive O cer
 • shareholder letter icon 10/2/2025 Letter Continued (Full PDF)
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 • stockholder letter icon 10/3/2024 SYY Stockholder Letter
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 • Benford's Law Stocks icon SYY Benford's Law Stock Score = 91


SYY Shareholder/Stockholder Letter Transcript:

2025 Annual Report


Letter from the Chair of
the Board
Board and
and CEO
CEO
the
Kevin Hourican
Chair of the Board and Chief Executive O   cer
Dear Fellow Stockholders,
As I write to you for the sixth time in my tenure as CEO, I    nd myself re   ecting on the remarkable journey we   ve taken together. We tackled the challenges
that COVID presented our industry head-on. We invested to advance our technology, strengthen our supply chain, and improve our customer experience.
We developed and implemented a growth strategy that has resulted in four consecutive years of pro   table market share gains. Through it all, we
have remained accountable in our unwavering commitment to serving our colleagues and customers.
Along the way, we   ve gained invaluable insights, like the importance of nurturing customer relationships and the need to balance speed and agility
with thoughtful change management. Our progress as a company is a testament to the dedication of our 75,000 colleagues and the strength of our
customer relationships, which remain at the heart of everything we do. We are committed to being the industry leader in foodservice distribution,
bringing culinary and supply chain innovation to our customers.
Strong Financial Results, Delivered By Disciplined Operators(1)
In    scal year 2025, we advanced our Sysco playbook while delivering solid year-over-year performance and reinforcing our foundation for long-term
growth. We generated $81.4 billion in revenue, re   ecting 3.2% year-over-year growth, achieved $3.1 billion in operating income and $3.5 billion
in adjusted operating income, up 1.2%. We delivered EPS of $3.73 and adjusted EPS of $4.46, a 3.5% increase, along with $2.5 billion in cash    ow
from operations and $1.8 billion in free cash    ow.
Our robust operating cash    ow and operational rigor enabled us to return approximately $2.25 billion to shareholders through dividends and share
repurchases. We have grown our dividend for 56 years and are proud of our investment grade balance sheet. At the same time, we invested in our
core business to create long-term pro   table growth through Supply Chain capacity expansion and modernizing our suite of customer-facing systems.
Compelling International Performance & Improving U.S./Domestic Business Results
z
International: Our International division posted its seventh consecutive quarter of double-digit pro   t growth, with adjusted operating income
growing signi   cantly faster than the total company over the past few years. We are successfully running the Sysco playbook globally, expanding local
sales resources, modernizing our supply chain, and enhancing customer-facing technology. We expect this momentum to continue into    scal 2026.
Sysco International is a growth engine within the company.
z
U.S. National: Our U.S. Foodservice national sales business delivered strong pro   t growth, increasing our pro   t rate three times higher than sales
growth. This outcome was delivered by thoughtful customer mix optimization and by implementing win/win contract structures with our customers
that enhance e   ciency and pro   tability.
z
U.S. Local: Our U.S. Local business underperformed versus our expectations in    scal 2025, but greatly improved throughout the year. We clearly
understand the root cause of our challenges in 2025 and implemented initiatives to directly address those challenges. To that end,    scal Q4 2025
was the strongest period of the year, and the positive momentum has accelerated further as we have entered    scal 2026. We have stabilized our
sales colleague population, invested in incremental sales professional headcount, and are strengthening overall sales professional e   ectiveness.
Compelling initiatives like Perks 2.0, AI360, Pricing Agility, and Sysco Your Way are improving the service we provide to our customers, increasing
colleague productivity, and strengthening our business results. As we enter    scal 2026, we are seeing positive local case growth in our Local business
and expect further momentum to be delivered throughout the year.
(1) This paragraph contains non-GAAP financial measures, which are denoted as    adjusted.    See pages 31 through 35 in the attached Form 10-K for a reconciliation of these
non-GAAP measures to the corresponding GAAP results and an explanation of the adjustments that we have made in order to calculate these adjusted measures.

z
Specialty foods: Our over $9 billion Specialty business is the second growth engine within Sysco, growing both top- and bottom-line faster than
the total company. We have continued to expand our specialty o   erings in produce, protein, Italian, and Asian foods. Our success is enabling us
to pro   tably increase market share in these fast-growing and higher pro   t sectors of the overall Food Away from Home landscape. We expect our
Specialty business to grow approximately two times the rate of our core broadline segment for years to come.
A Confident Path Forward
As we turn the page to    scal 2026, Sysco is entering the year with strong momentum and    nancial performance. In addition to our expectations to
sell more than $85 billion of food and related products, we plan to expand our market share and increase our overall pro   tability in 2026. Our high
degree of con   dence in our external guidance is grounded in the disciplined execution of our team, and compelling initiatives that will advance our
Recipe For Growth strategy.
Delivering on Our Promise of Performance
At Sysco, we are foodies at heart. We care deeply about our colleagues, our customers, and our industry. This passion fuels our commitment to excellence
and drives us to deliver strong results. For us, it   s not just about meeting the expectations of commercial kitchens, it   s about exceeding those expectations
by providing culinary innovations, the freshest of ingredients, and a supply chain that delivers on-time and in-full, every time.
We remain committed to disciplined capital allocation. As a proud Dividend Aristocrat, we expect to deliver a 6-cent per share increase in the full year
dividend for    scal 2026, marking our 56th year of dividend growth. We plan to return approximately $1 billion to shareholders through dividends and
will invest approximately $1 billion in a combination of stock buybacks and M&A.
Sysco Continues to Deliver Value Through Strategic Strength
While we anticipate a cautious end consumer in 2026, Sysco is uniquely positioned to thrive in a dynamic market. Our diversi   ed customer base, global
footprint, strength of balance sheet, and industry-leading capabilities give us the tools to succeed regardless of the macro environment. We are excited
about the year ahead and remain committed to unlocking value for our customers, colleagues, and shareholders.
Our future is bright. I am proud of what we   ve accomplished and energized by what lies ahead. Thank you for your continued support and trust in Sysco.
Kevin Hourican
Chair of the Board and Chief Executive O   cer



shareholder letter icon 10/2/2025 Letter Continued (Full PDF)
 

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