SYY · 10-K · 2026A · Full report

Income Tax Rate Changes

SYSCO CORP · 2026-08-21 · Importance 45 · Surprise 50

Sysco’s effective tax rate was 22.8% in fiscal 2026, and the company expects a rate of approximately 23.7% to 24.2% in fiscal 2027. The One Big Beautiful Bill Act, signed July 4, 2025, includes changes to international tax rules and restores favorable tax treatment for certain business provisions. Those provisions decreased cash taxes paid in fiscal 2026 and may change the timing of cash-tax payments in future periods. Fiscal 2026 income-tax expense declined 11.6% year over year, while earnings before taxes declined 5.8%.

Key facts

• Sysco's effective tax rate was 22.8% in fiscal 2026 and is expected to be approximately 23.7% to 24.2% in fiscal 2027. source
• Income taxes positively affected Sysco's fiscal 2026 operating cash flow by $78 million because estimated payments were lower than in fiscal 2025. source