SYY · 10-K · 2026A · Full report

Operating Expense Trends

SYSCO CORP · 2026-08-21 · Importance 49 · Surprise 32 · In source text

Total operating expenses increased 5.6% to $12.544 billion in fiscal 2026, compared with a 3.9% increase in sales; adjusted operating expenses rose 5.1% to $12.025 billion. The increase reflected sales headcount investments, higher incentive compensation, restructuring and transformation costs, and acquisition and due-diligence costs. Global Support Center expenses increased $127 million, or 13.7%, primarily from colleague-related costs and acquisition and due-diligence costs, partly offset by lower insurance costs. Fiscal 2026 Certain Items included $287 million of restructuring and transformation costs and $232 million of acquisition-related costs.

Key facts

• The expected long-term return assumption for Sysco's U.S. Retirement Plan is 6.00% for fiscal 2027; a 25-basis-point change in the assumed rate would change fiscal 2027 pension costs by approximately $6 million in the opposite direction. source
• As of June 27, 2026, the funded-status amount for Sysco defined benefit plans reflected in accumulated other comprehensive income was a $795 million after-tax charge, compared with a $918 million charge as of June 28, 2025. source
• Sysco's Global Support Center expenses increased $127 million, or 13.7%, in fiscal 2026, primarily due to colleague-related and acquisition and due diligence costs, partly offset by lower insurance costs. source
• Sysco's International Foodservice operating expenses increased 10.0% in fiscal 2026, primarily due to colleague-related costs, supply-chain transformation costs, and sales-headcount investments. source
• Sysco's total operating expenses increased 5.6% in fiscal 2026, driven by sales headcount investment, restructuring and transformational project costs, incentive compensation, and acquisition and due diligence costs. source
• Sysco's adjusted operating expenses increased 5.1% in fiscal 2026, due to higher sales headcount investment and incentive compensation. source
• Sysco may be unable to fully offset increases in fuel costs, and fuel hedging arrangements could result in above-market fuel costs. source
• Sysco faces risks in attracting, motivating, and retaining employees, including key personnel. source

Impact estimates