SYY · 10-Q · 2026Q3 · Full report

Capital Expenditures and Free Cash Flow

SYSCO CORP · 2026-11-04 · Importance 51 · Surprise 64

Free cash flow was positive $230 million in the first 13 weeks of fiscal 2027, versus negative $50 million in the comparable fiscal 2026 period. Operating cash flow increased to $278 million from $86 million, while capital expenditures declined $63 million to $97 million. Management attributed the free-cash-flow improvement to higher operating cash flow, lower capital expenditures, and $49 million of plant-and-equipment sale proceeds versus $24 million a year earlier. Fiscal 2027 capital spending focused primarily on buildings and improvements, technology and warehouse equipment, and fleet.

Key facts

• Sysco may not be able to effectively execute its capital allocation framework. source
• Sysco produced $230 million of free cash flow in the first 13 weeks of fiscal 2027, compared with negative free cash flow of $50 million in the first 13 weeks of fiscal 2026. source
• Sysco generated $278 million in operating cash flows in the first 13 weeks of fiscal 2027, compared with $86 million in the first 13 weeks of fiscal 2026. source
• Sysco’s first-13-weeks fiscal 2027 year-over-year working-capital comparison was favorable by $277 million, reflecting favorable inventory and accounts-receivable comparisons partly offset by an unfavorable accounts-payable comparison. source
• Sysco capital expenditures in the first 13 weeks of fiscal 2027 were $63 million lower than in the first 13 weeks of fiscal 2026. source
• Sysco received $49 million from sales of plant and equipment in the first 13 weeks of fiscal 2027, compared with $24 million in the first 13 weeks of fiscal 2026. source