SYSCO CORP
For the period ended Mar 28, 2026. Filed Apr 29, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 28, 2026 · Filed Apr 29, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
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Item 1. Financial Statements
CONSOLIDATED BALANCE SHEETS
(In millions, except for share data)
| Mar. 28, 2026 | Jun. 28, 2025 | |
|---|---|---|
| (unaudited) | ||
| ASSETS | ||
| Current assets | ||
| Cash and cash equivalents | $1,900 | $1,071 |
| Accounts receivable, less allowances of $87 and $17 | 5,755 | 5,502 |
| Inventories | 5,291 | 5,053 |
| Prepaid expenses and other current assets | 415 | 338 |
| Income tax receivable | 22 | 4 |
| Total current assets | 13,383 | 11,968 |
| Plant and equipment at cost, less accumulated depreciation | 5,888 | 6,084 |
| Other long-term assets | ||
| Goodwill | 5,246 | 5,231 |
| Intangibles, less amortization | 995 | 1,080 |
| Deferred income taxes | 488 | 497 |
| Operating lease right-of-use assets, net | 1,320 | 1,131 |
| Other assets | 663 | 783 |
| Total other long-term assets | 8,712 | 8,722 |
| Total assets | $27,983 | $26,774 |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||
| Current liabilities | ||
| Accounts payable | $6,387 | $6,512 |
| Accrued expenses | 2,344 | 2,268 |
| Accrued income taxes | — | 51 |
| Current operating lease liabilities | 147 | 136 |
| Current maturities of long-term debt | 1,190 | 949 |
| Total current liabilities | 10,068 | 9,916 |
| Long-term liabilities | ||
| Long-term debt | 12,818 | 12,360 |
| Deferred income taxes | 380 | 345 |
| Long-term operating lease liabilities | 1,226 | 1,049 |
| Other long-term liabilities | 1,194 | 1,247 |
| Total long-term liabilities | 15,618 | 15,001 |
| Noncontrolling interest | — | 27 |
| 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 765,174,900 shares | 765 | 765 |
| Paid-in capital | 2,089 | 1,986 |
| Retained earnings | 13,461 | 13,061 |
| Accumulated other comprehensive loss | (1,055) | (1,098) |
| Treasury stock at cost, 286,996,640 and 287,678,658 shares | (12,963) | (12,884) |
| Total shareholders’ equity | 2,297 | 1,830 |
| Total liabilities and shareholders’ equity | $27,983 | $26,774 |
Note: The June 28, 2025 balance sheet has been derived from the audited financial statements at that date.
CONSOLIDATED RESULTS OF OPERATIONS (Unaudited)
(In millions, except for share and per share data)
| 13-Week Period Ended | 39-Week Period Ended | |||
|---|---|---|---|---|
| Mar. 28, 2026 | Mar. 29, 2025 | Mar. 28, 2026 | Mar. 29, 2025 | |
| Sales | $20,519 | $19,598 | $62,429 | $60,232 |
| Cost of sales | 16,707 | 16,017 | 50,924 | 49,249 |
| Gross profit | 3,812 | 3,581 | 11,505 | 10,983 |
| Operating expenses | 3,193 | 2,900 | 9,393 | 8,783 |
| Operating income | 619 | 681 | 2,112 | 2,200 |
| Interest expense | 168 | 149 | 512 | 469 |
| Other expense (income), net | 6 | 9 | 44 | 32 |
| Earnings before income taxes | 445 | 523 | 1,556 | 1,699 |
| Income taxes | 105 | 122 | 350 | 402 |
| Net earnings | $340 | $401 | $1,206 | $1,297 |
| Net earnings: | ||||
| Basic earnings per share | $0.71 | $0.82 | $2.52 | $2.65 |
| Diluted earnings per share | 0.71 | 0.82 | 2.51 | 2.64 |
| Average shares outstanding | 479,344,821 | 487,519,382 | 479,150,734 | 490,080,591 |
| Diluted shares outstanding | 481,188,586 | 489,331,460 | 480,738,926 | 491,973,759 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)
(In millions)
| 13-Week Period Ended | 39-Week Period Ended | |||
|---|---|---|---|---|
| Mar. 28, 2026 | Mar. 29, 2025 | Mar. 28, 2026 | Mar. 29, 2025 | |
| Net earnings | $340 | $401 | $1,206 | $1,297 |
| Other comprehensive income (loss): | ||||
| Foreign currency translation adjustment | (62) | 136 | (74) | 49 |
| Items presented net of tax: | ||||
| Amortization of cash flow hedges | 1 | 1 | 3 | 4 |
| Change in net investment hedges | 27 | (6) | 32 | (3) |
| Change in cash flow hedges | 62 | 3 | 61 | (5) |
| Change in excluded components of fair value hedge | — | — | — | (2) |
| Amortization of actuarial loss | 6 | 5 | 17 | 15 |
| Net actuarial gain and other adjustments arising in current year | — | — | 4 | 23 |
| Change in marketable securities | (1) | 2 | — | 3 |
| Total other comprehensive income (loss) | 33 | 141 | 43 | 84 |
| Comprehensive income | $373 | $542 | $1,249 | $1,381 |
CHANGES IN CONSOLIDATED SHAREHOLDERS’ EQUITY (Unaudited)
(In millions, except for share data)
Quarter to Date
| AccumulatedOther ComprehensiveLoss | ||||||||
|---|---|---|---|---|---|---|---|---|
| Common Stock · Paid-inCapital · RetainedEarnings · Treasury Stock | ||||||||
| Shares · Amount · Shares · Amounts · Totals | ||||||||
| Balance as of December 27, 2025 | 765,174,900 | $765 | $2,048 | $13,383 | $(1,088) | 286,247,800 | $(12,825) | $2,283 |
| Net earnings | 340 | 340 | ||||||
| Other comprehensive income (loss) | 33 | 33 | ||||||
| Dividends declared ($0.54 per common share) | (259) | (259) | ||||||
| Treasury stock purchases | 2,230,415 | (200) | (200) | |||||
| Share-based compensation awards | 41 | (1,481,575) | 62 | 103 | ||||
| Adjustments to redeemable non-controlling interest | (3) | (3) | ||||||
| Balance as of March 28, 2026 | 765,174,900 | $765 | $2,089 | $13,461 | $(1,055) | 286,996,640 | $(12,963) | $2,297 |
| AccumulatedOther ComprehensiveLoss | ||||||||
| Common Stock · Paid-inCapital · RetainedEarnings · Treasury Stock | ||||||||
| Shares · Amount · Shares · Amounts · Totals | ||||||||
| Balance as of December 28, 2024 | 765,174,900 | $765 | $1,965 | $12,649 | $(1,396) | 275,706,546 | $(11,969) | $2,014 |
| Net earnings | 401 | 401 | ||||||
| Other comprehensive income (loss) | 141 | 141 | ||||||
| Dividends declared ($0.51 per common share) | (246) | (246) | ||||||
| Treasury stock purchases | 5,468,937 | (400) | (400) | |||||
| Share-based compensation awards | (2) | (745,821) | 26 | 24 | ||||
| Adjustments to redeemable non-controlling interest | (12) | (12) | ||||||
| Balance as of March 29, 2025 | 765,174,900 | $765 | $1,963 | $12,792 | $(1,255) | 280,429,662 | $(12,343) | $1,922 |
Year to Date
| AccumulatedOther ComprehensiveLoss | ||||||||
|---|---|---|---|---|---|---|---|---|
| Common Stock · Paid-inCapital · RetainedEarnings · 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 | 1,206 | 1,206 | ||||||
| Other comprehensive income (loss) | 43 | 43 | ||||||
| Dividends declared ($1.62 per common share) | (778) | (778) | ||||||
| Treasury stock purchases | 2,230,415 | (200) | (200) | |||||
| Share-based compensation awards | 103 | (2,912,433) | 121 | 224 | ||||
| Adjustments to redeemable non-controlling interest | (28) | (28) | ||||||
| Balance as of March 28, 2026 | 765,174,900 | $765 | $2,089 | $13,461 | $(1,055) | 286,996,640 | $(12,963) | $2,297 |
| AccumulatedOther ComprehensiveLoss | ||||||||
| Common Stock · Paid-inCapital · RetainedEarnings · Treasury Stock | ||||||||
| Shares · Amount · Shares · Amounts · Totals | ||||||||
| Balance as of June 29, 2024 | 765,174,900 | $765 | $1,908 | $12,260 | $(1,339) | 273,416,685 | $(11,734) | $1,860 |
| Net earnings | 1,297 | 1,297 | ||||||
| Other comprehensive loss | 84 | 84 | ||||||
| Dividends declared ($1.53 per common share) | (749) | (749) | ||||||
| Treasury stock purchases | 9,418,578 | (700) | (700) | |||||
| Share-based compensation awards | 55 | (2,405,601) | 91 | 146 | ||||
| Adjustments to redeemable non-controlling interest | (16) | (16) | ||||||
| Balance as of March 29, 2025 | 765,174,900 | $765 | $1,963 | $12,792 | $(1,255) | 280,429,662 | $(12,343) | $1,922 |
CONSOLIDATED CASH FLOWS (Unaudited)
(In millions)
| 39-Week Period Ended | ||
|---|---|---|
| Mar. 28, 2026 | Mar. 29, 2025 | |
| Cash flows from operating activities: | ||
| Net earnings | $1,206 | $1,297 |
| Adjustments to reconcile net earnings to cash provided by operating activities: | ||
| Share-based compensation expense | 95 | 74 |
| Depreciation and amortization | 724 | 709 |
| Operating lease asset amortization | 113 | 102 |
| Amortization of debt issuance and other debt-related costs | 11 | 11 |
| Deferred income taxes | (14) | (27) |
| Provision for losses on receivables | 62 | 72 |
| Other non-cash items | (40) | (84) |
| Additional changes in certain assets and liabilities, net of effect of businesses acquired: | ||
| Increase in receivables | (335) | (228) |
| Increase in inventories | (233) | (214) |
| Increase in prepaid expenses and other current assets | (19) | (11) |
| Increase (decrease) in accounts payable | 43 | (128) |
| Increase (decrease) in accrued expenses | 100 | (98) |
| Decrease in operating lease liabilities | (158) | (132) |
| Decrease in accrued income taxes | (69) | (91) |
| (Increase) decrease in other assets | (13) | 16 |
| (Decrease) increase in other long-term liabilities | (10) | 49 |
| Net cash provided by operating activities | 1,463 | 1,317 |
| Cash flows from investing activities: | ||
| Additions to plant and equipment | (461) | (532) |
| Proceeds from sales of plant and equipment | 131 | 169 |
| Acquisition of businesses, net of cash acquired | (189) | (40) |
| Purchase of marketable securities | (15) | (25) |
| Proceeds from sales of marketable securities | 22 | 24 |
| Other investing activities | 23 | 12 |
| Net cash used for investing activities | (489) | (392) |
| Cash flows from financing activities: | ||
| Bank and commercial paper borrowings (repayments), net | 251 | (33) |
| Other debt borrowings including senior notes | 1,252 | 1,254 |
| Other debt repayments including senior notes | (866) | (143) |
| Proceeds from stock option exercises | 124 | 96 |
| Stock repurchases | (200) | (700) |
| Dividends paid | (778) | (752) |
| Other financing activities | (45) | (21) |
| Net cash used for financing activities | (262) | (299) |
| Effect of exchange rates on cash, cash equivalents and restricted cash | (5) | (7) |
| Net increase in cash, cash equivalents and restricted cash | 707 | 619 |
| Cash, cash equivalents and restricted cash at beginning of period | 1,349 | 945 |
| Cash, cash equivalents and restricted cash at end of period | $2,056 | $1,564 |
| Supplemental disclosures of cash flow information: | ||
| Cash paid during the period for: | ||
| Interest | $521 | $453 |
| Income taxes, net of refunds (1) | 401 | 510 |
| (1) | Cash paid for income taxes, net for the 39 weeks ended March 28, 2026 and March 29, 2025 includes $227 million and $190 million, respectively, of cash paid for the purchase of federal tax credits. |
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
Unless this Form 10-Q indicates otherwise or the context otherwise requires, the terms “we,” “our,” “us,” “Sysco,” or
the “company” as used in this Form 10-Q refer to Sysco Corporation together with its consolidated subsidiaries and divisions.
- BASIS OF PRESENTATION
The consolidated financial statements have been prepared by the company, without an audit. The financial statements
include consolidated balance sheets, consolidated results of operations, consolidated statements of comprehensive income,
changes in consolidated shareholders’ equity and consolidated cash flows. In the opinion of management, all adjustments,
which consist of normal recurring adjustments, except as otherwise disclosed, necessary to present fairly the financial position,
results of operations, comprehensive income, cash flows and changes in shareholders’ equity for all periods presented have
been made.
These financial statements should be read in conjunction with the audited financial statements and notes thereto
included in our Annual Report on Form 10-K for the fiscal year ended June 28, 2025 (our “fiscal 2025 Form 10-K”). Certain
footnote disclosures included in annual financial statements prepared in accordance with generally accepted accounting
principles (GAAP) have been condensed or omitted pursuant to applicable rules and regulations for interim financial
statements.
Supplemental Balance Sheet Information
Supplier Financing Programs
We have agreements with third parties to provide supplier finance programs which facilitate participating suppliers’
ability to finance payment obligations from the company with designated third-party financial institutions. Participating
suppliers may, at their sole discretion, make offers to finance one or more payment obligations of the company prior to their
scheduled due dates at a discounted price to participating financial institutions. Obligations of the company that have been
confirmed as valid require payment by Sysco upon the due date of the obligation.
Our outstanding payment obligations that suppliers financed to participating financial institutions, which are included
inaccounts payable on the consolidated balance sheets, are as follows:
| Mar. 28, 2026 | Jun. 28, 2025 | |
|---|---|---|
| (In millions) | ||
| Financed payment obligations | $85 | $93 |
Accounts Receivable, Less Allowances
We utilize arrangements to sell portions of our trade accounts receivable to third-party financial institutions on a non-
recourse basis in exchange for cash. The arrangements meet the requirements for the receivables transferred to be accounted for
as sales and are accounted for as a reduction in trade receivables. Proceeds from the sales are reported net of negotiated
discount and are recorded as a reduction to accounts receivable outstanding in the company’s consolidated balance sheets and
as cash flows from operating activities in the company’s consolidated statements of cash flows. Accounts receivable sold under
these arrangements were$1.4 billion and$1.9 billion for thethird quarter of fiscal 2026 and 2025, respectively, and$4.4 billion
and$6.0 billion for the first 39 weeks of fiscal 2026 and 2025, respectively.
In certain instances, Sysco has continuing involvement subsequent to the transfer, limited to providing certain
servicing and collection actions on behalf of the purchasers of the designated trade receivables. The outstanding aggregate
principal amount of receivables that has been derecognized and remain outstanding was$198 million and$189 million at
March 28, 2026 and June 28, 2025, respectively. We continue to service the receivables post-transfer on a non-recourse basis
with no participating interest.
Supplemental Cash Flow Information
The following table sets forth our reconciliation of cash, cash equivalents and restricted cash reported within the
consolidated balance sheets that sum to the total of the amounts shown in the consolidated statement of cash flows:
| Mar. 28, 2026 | Mar. 29, 2025 | |
|---|---|---|
| (In millions) | ||
| Cash and cash equivalents | $1,900 | $1,527 |
| Restricted cash (1) | 156 | 37 |
| Total cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows | $2,056 | $1,564 |
| (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. |
The following table sets forth our non-cash investing and financing activities:
| Mar. 28, 2026 | Mar. 29, 2025 | |
|---|---|---|
| (In millions) | ||
| Non-cash investing and financing activities: | ||
| Plant and equipment acquired through financing programs | $117 | $272 |
| Assets obtained in exchange for finance lease obligations | 30 | 55 |
- NEW ACCOUNTING STANDARDS
Recent Accounting Guidance Adopted
Segment Reporting
In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU)
2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures to improve reportable segment
disclosure requirements through enhanced disclosures about significant segment expenses. ASU 2023-07 expands public
entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief
operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its
composition for other segment items and interim disclosures of a reportable segment’s profit or loss and assets. ASU 2023-07 is
effective for fiscal years beginning after December 15, 2023, (our fiscal 2025), and interim periods for our fiscal years
beginning after December 15, 2024, (our first quarter of fiscal 2026), and should be applied on a retrospective basis to all
periods presented. Sysco adopted ASU 2023-07 related to annual disclosure requirements effective with our fiscal 2025 Form
10-K. The newly required annual disclosures were included in Note 21 - Business Segment Information of the fiscal 2025 Form
10-K. We adopted ASU 2023-07 related to interim disclosure requirements effective with our first quarter fiscal 2026 10-Q
filing. See Note 14 included in this Form 10-Q for the additional segment disclosures required as a result of the adoption.
Adoption of ASU 2023-07 only impacted our financial statement disclosures, with no impacts to our financial position or
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.