SYY · 8-K · 20260804PR000026

Gross Margin Drivers

SYSCO CORP · 2026-08-04 · Importance 49 · Surprise 32

Fiscal 2026 gross profit increased 4.5% to $15.6 billion and gross margin expanded 10 basis points to 18.5%. Fourth-quarter gross margin declined 17 basis points to 18.7% as product cost inflation reached 2.8%, primarily in meat and fresh produce. Annual gross-margin improvement reflected positive volumes, strategic sourcing efficiencies, and effective management of product-cost inflation. International Foodservice Operations delivered annual gross-profit growth of 9.4% to $3.4 billion and margin expansion of 34 basis points to 21.2%, while U.S. Foodservice margin increased 2 basis points to 19.1%.

Key facts

• Gross profit for the fourth quarter increased 3.7% to $4.1 billion. source
• Gross profit for fiscal year 2026 increased 4.5% to $15.6 billion. source
• Gross profit for U.S. Foodservice in the fourth quarter increased 3.0% to $3.0 billion, and gross margin decreased 26 basis points to 19.2%. source
• International Foodservice gross profit for the quarter increased 7.3% to $909 million, and on a constant currency basis gross profit increased 6.0% to $898 million. source
• GLOBAL SUPPORT CENTER Gross profit (GAAP): $47 million in current period versus $57 million in prior period, change $(10) million, (17.5)% source
• Gross margin for the fourth quarter decreased 17 basis points to 18.7%. source
• Product cost inflation was 2.8% at the total enterprise level in the fourth quarter. source
• Product cost inflation was 3.0% at the total enterprise level for fiscal year 2026. source