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Annaly Capital Management, Inc. maintains its $0.70 per-share dividend, supported by growing net interest spread and strong earnings coverage. NLY's net interest spread improved for the fourth consecutive time in the last year, reaching 1.07%, driven by lower financing costs and stable asset yields. NLY shares trade at a 9% premium to book value, reflecting improved spreads and expectations of future rate cuts benefiting MBS investors.

Annaly Capital faces potential NAV erosion from rising rates and term spread compression but currently trades near its historical valuation premium versus peers. Lower hedge ratios have increased NLY's interest rate sensitivity, worsening the outlook if policy rates rise or stay elevated. Ongoing equity issuance dilutes shareholders but is partly offset by redeployment into higher‑yielding assets instead of lower‑yield agency MBS.

Mortgage real estate investment trust (REIT) Annaly Capital (NLY 0.04%) has a shockingly large 12.9% dividend yield. For reference, the S&P 500 index (^GSPC +0.50%) has a yield of just 1.1% today. The average REIT has a yield of 3.6%. If you are looking at Annaly's juicy yield today, you need to be worried about interest rates.

The next rate move could be higher While consumers appear to be worried about a recession, tightening their budgets, inflation is running hot. Rising inflation could force the Federal Reserve to increase interest rates. A key part of Annaly Capital's business model is to borrow money short-term so it can buy long-term mortgage securities. If rates rise, the company's interest costs go up even though its interest income doesn't change. That would leave less money to pay dividends.

Image source: Getty Images.

To protect itself from interest rate volatility, the company hedges its portfolio. At the end of the first quarter of 2026, 87% of the portfolio was hedged, down from 90% at the end of 2025 and 95% in the first quarter of 2025. The company's hedging covers a range of different time periods, from short-term to long-term; the majority of its activity (45%) is at the short end.

Protecting the dividend is a complicated job Annaly assumed "a conservative hedge profile throughout the quarter given elevated rate and macro volatility." None of the first quarter's uncertainty has receded at this point, so it is highly likely that the mortgage REIT is still taking the same conservative approach. That's a positive for investors looking at the stock, since it suggests that Annaly will be able to continue paying its dividend in the near term even if rates change dramatically.

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That said, long-term dividend investors should tread with caution here. While Annaly's yield is attractive, the dividend has a history of volatility. The company is well-respected, but the real investment story is total return, which requires dividend reinvestment. In fact, from a total return perspective, the stock has outperformed the S&P 500 since Annaly's initial public offering. However, the dividend and stock price are both lower today than they were 10 years ago. In other words, if you spent the dividend, you would have been left with less income and less capital.

Safe for now, risky over the long term The big-picture story is that Annaly appears to be taking a prudent approach to its portfolio, actively hedging its near-term interest rate risk. That should allow it to support its dividend through the current market uncertainty, even if that uncertainty leads to rate changes. However, if you are a dividend investor using dividends to pay for living expenses, that still isn't enough to make this ultra-high-yield mREIT a reliable choice for long-term income.

Annaly Capital Management (NLY - Free Report) closed at $20.96 in the latest trading session, marking a -1.23% move from the prior day. This change lagged the S&P 500's 0.3% gain on the day. Elsewhere, the Dow lost 0.16%, while the tech-heavy Nasdaq added 0.86%.

Prior to today's trading, shares of the real estate investment trust had lost 6.15% lagged the Finance sector's gain of 1.34% and the S&P 500's gain of 1.92%.

The upcoming earnings release of Annaly Capital Management will be of great interest to investors. The company's upcoming EPS is projected at $0.74, signifying a 1.37% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $488 million, up 78.62% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.98 per share and a revenue of $1.93 billion, signifying shifts of +2.05% and +69.62%, respectively, from the last year.

Any recent changes to analyst estimates for Annaly Capital Management should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Annaly Capital Management is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Annaly Capital Management has a Forward P/E ratio of 7.13 right now. This expresses a discount compared to the average Forward P/E of 8.55 of its industry.

We can also see that NLY currently has a PEG ratio of 6.48. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The REIT and Equity Trust industry had an average PEG ratio of 1.46 as trading concluded yesterday.

The REIT and Equity Trust industry is part of the Finance sector. This group has a Zacks Industry Rank of 211, putting it in the bottom 14% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow NLY in the coming trading sessions, be sure to utilize Zacks.com.

Annaly Capital Management (NLY +2.80%) already offers a monster 12.7% dividend yield. That's more than 10 times higher than the S&P 500's 1.1% yield. It's now boosting that payout by another 7.1%.

Here's a look at how the real estate investment trust (REIT) focused on residential mortgages can afford its big-time yield and whether investors should buy it for income.

Image source: Getty Images.

Another raise Annaly Capital Management recently declared its latest dividend. The mortgage REIT will pay $0.75 per share on July 31 to investors who hold shares as of June 30. That's a 7.1% raise from the $0.70 per share it paid last quarter. It will boost the REIT's forward dividend yield to 13.6% at its recent share price. In commenting on the increase, CEO David Finkelstein stated that it underscores "the strong performance of Annaly's diversified housing finance portfolio and our focus on driving shareholder value."

The dividend increase follows Annaly's steadily improving earnings. The company reported $0.76 per share of earnings available for distribution (EAD) during the first quarter. That was up from $0.74 per share last quarter and $0.72 per share in the prior year period. It's a continuation of the improvement in the REIT's earnings over the past few years:

Data source: Annaly Capital Management. Chart by the author.

With its earnings rising, ample investment opportunities in the current market environment, and a strong financial profile, Annaly now has the confidence to increase its dividend. It's the REIT's second raise in the past 18 months. However, the dividend remains well below its peak due to a series of cuts in prior years.

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Diversification is paying dividends Annaly's investment strategy differs from that of other residential mortgage REITs, such as AGNC Investment. Whereas AGNC Investment only invests in Agency MBS (mortgage-backed securities guaranteed against credit losses by government agencies such as Fannie Mae), Annaly also invests in residential credit (non-agency residential mortgage assets) and mortgage servicing rights (MSR).

That diversification gives it the flexibility to invest where it sees the best opportunities. For example, Annaly ended the first quarter with $92 billion in Agency investments, down marginally from the year-end level. The REIT opportunistically repositioned the portfolio during the quarter by rotating out of higher-yielding MBS and into lower-yielding MBS, which it expects will provide more durable cash flows. Meanwhile, it raised $510 million of equity during the quarter to capitalize on opportunities to grow its residential credit and MSR portfolios. It expanded its residential credit portfolio by 30% to $10.3 billion in the quarter, while its MSR portfolio grew by 9% to $4.2 billion. The company expects to continue growing these platforms.

A higher risk, higher reward income stock Annaly Capital's diversification strategy is paying off. The REIT is capitalizing on opportunities to grow its residential credit and MSR portfolios, helping drive earnings growth. That's enabling the REIT to increase its dividend. While Annaly is a higher-risk income stock (it has cut its dividend many times in the past), it's a good option for more risk-tolerant investors looking to buy income.

Matt DiLallo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Pareto upgrades - swapping into strictly superior securities within the same issuer - can materially improve portfolio yield without increasing risk. Repeated Pareto upgrades raised yield on invested capital from 8.53% to 11.33% in under two years, demonstrating powerful compounding effects. Current actionable opportunity: ABR-D preferred offers an 18 basis point yield advantage over ABR-E with identical upside to par and risk profile.

In the latest trading session, AGNC Investment (AGNC - Free Report) closed at $10.23, marking a -1.73% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.26%. Elsewhere, the Dow saw an upswing of 0.09%, while the tech-heavy Nasdaq appreciated by 0.42%.

Shares of the real estate investment trust witnessed a loss of 4.84% over the previous month, trailing the performance of the Finance sector with its gain of 2.26%, and the S&P 500's gain of 6.32%.

Investors will be eagerly watching for the performance of AGNC Investment in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.38, marking stability compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $361.52 million, up 123.16% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.56 per share and a revenue of $1.47 billion, representing changes of +4% and +117.14%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for AGNC Investment. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. AGNC Investment presently features a Zacks Rank of #2 (Buy).

In terms of valuation, AGNC Investment is presently being traded at a Forward P/E ratio of 6.66. For comparison, its industry has an average Forward P/E of 8.76, which means AGNC Investment is trading at a discount to the group.

The REIT and Equity Trust industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 213, which puts it in the bottom 13% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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Fifty thousand dollars a year is what a careful retiree might want to cover housing, groceries, and Medicare premiums on top of Social Security. Two mortgage REITs, Annaly Capital Management (NYSE:NLY | NLY Price Prediction) and AGNC Investment (NASDAQ:AGNC), currently throw off enough yield to fund that number on a $400,000 sleeve. The math works. The risk is what most 64-year-olds shopping for income do not price in.

NLY pays $0.70 quarterly, or $2.80 annualized, on a share price near $22. AGNC pays $0.12 monthly, or $1.44 annualized, on a share price near $10. Trailing yields land at 13% and 13.7%. A 50/50 split on $400,000 produces roughly $53,000 in cash distributions over a year. Headline rounded to $50,000 gives a small cushion.

The Same Income, Three Different Capital Requirements The amount of capital needed to generate $50,000 in annual income depends largely on the yield an investor is willing to accept. The math is straightforward: income target divided by yield equals capital required.

Conservative tier (3% to 4% yield). Dividend-growth ETFs and high-quality blue chips occupy this range. At a 3.5% yield, generating $50,000 annually requires approximately $1.43 million. The tradeoff is that dividends often grow over time, helping income keep pace with inflation while supporting long-term capital appreciation. The drawback is the substantial capital requirement.

Moderate tier (5% to 7% yield). Preferred-share funds, midstream energy partnerships, business development companies, and diversified high-dividend strategies generally fall into this category. At a 6% yield, an investor needs about $833,000 to generate $50,000 annually. Income starts higher, but payout growth is typically slower and returns can be more sensitive to credit conditions and economic cycles.

Aggressive tier (10% to 14% yield). Mortgage REITs, leveraged covered-call funds, and CLO equity strategies often operate in this range. At a 12.5% yield, producing $50,000 of annual income requires just $400,000. The income hurdle drops dramatically, but so does the margin for error. Higher yields generally come with greater volatility, higher distribution risk, and less room for mistakes.

Where the 14% Number Actually Comes From Annaly Capital Management (NLY) manages approximately $138.5 billion in assets across Agency mortgage-backed securities, residential credit, and mortgage servicing rights. AGNC Investment Corp. (AGNC) operates a roughly $94.7 billion Agency-focused portfolio with leverage of about 7.4x. Both mortgage REITs rely heavily on the spread between the yields earned on mortgage assets and their short-term funding costs.

With the 10-year Treasury yielding about 4.45% and the 10Y-2Y spread narrowing to 0.42% from 0.74% in February, the interest-rate environment has become less favorable for that business model. As financing spreads tighten, earnings pressure can build and dividend coverage may weaken.

The impact can be significant. Annaly reduced its quarterly dividend from $0.88 to $0.22 in 2022, while AGNC lowered its monthly payout from $0.18 to $0.12 in early 2020 and has maintained that level since. During challenging rate environments, income investors have often faced a double hit: lower distributions and declining share prices. In 2022, NLY fell 23% and AGNC fell 24%, illustrating how quickly a high-yield strategy can become less forgiving when market conditions deteriorate.

The Diversification Patch The iShares Mortgage Real Estate ETF (NYSEARCA:REM) holds 35 positions with NLY at 21.7% and AGNC at 14.2% of the fund, plus Starwood Property Trust, Rithm Capital, Blackstone Mortgage Trust, and 30 other names. The 0.48% expense ratio is the toll. The benefit is that one issuer cutting its payout does not knock out a single-digit share of your income.

What to Actually Do Cap mortgage REIT exposure at 10% to 15% of total income assets. A $400,000 sleeve makes sense inside a $3 million portfolio, not as the whole plan. Compare ten-year total returns, not current yields. NLY is up 71% over ten years and AGNC is up 83%, both before dividends. A 3.5% yielder growing the payout 8% annually doubles the income stream in nine years. A 14% yielder that holds flat does not. Reinvest 20% to 30% of distributions back into the position. That offsets the next dividend cut and slows the principal erosion that defines this asset class. The $400,000 number is real. So is the $50,000. Whether either survives the next rate cycle intact is the question the yield alone cannot answer.

, /PRNewswire/ -- AGNC Investment Corp. (Nasdaq: AGNC) ("AGNC" or the "Company") announced today that its Board of Directors has declared cash dividends on the outstanding depositary shares1 of the following series of preferred stock for the second quarter 2026:

Series of Preferred Stock

Ticker

Per Annum
Dividend Rate

Dividend Per
Depositary Share1

7.00% Series C Fixed-to-Floating Rate

AGNCN

9.05213%2

$0.57204

6.875% Series D Fixed-to-Floating Rate

AGNCM

8.27313%3

$0.52282

6.50% Series E Fixed-to-Floating Rate

AGNCO

8.93413%4

$0.56459

6.125% Series F Fixed-to-Floating Rate

AGNCP

8.63813%5

$0.54880

7.750% Series G Fixed-Rate Reset

AGNCL

7.750%6

$0.48438

8.750% Series H Fixed-Rate

AGNCZ

8.750 %

$0.54688

1.

Each depositary share represents a 1/1,000th interest in a share of preferred stock.

2.

The Series C Depositary Shares accrue dividends at a floating rate equal to Three-Month CME Term SOFR plus 0.26161% plus 5.111% per annum. The dividend rate for the dividend period ending July 14, 2026 is 9.05213% per annum.

3.

The Series D Depositary Shares accrue dividends at a floating rate equal to Three-Month CME Term SOFR plus 0.26161% plus 4.332% per annum. The dividend rate for the dividend period ending July 14, 2026 is 8.27313% per annum.

4.

The Series E Depositary Shares accrue dividends at a floating rate equal to Three-Month CME Term SOFR plus 0.26161% plus 4.993% per annum. The dividend rate for the dividend period ending July 14, 2026 is 8.93413% per annum.

5.

The Series F Depositary Shares accrue dividends at a floating rate equal to Three-Month CME Term SOFR plus 0.26161% plus 4.697% per annum. The dividend rate for the dividend period ending July 14, 2026 is 8.63813% per annum.

6.

The Series G Depositary Shares will accrue dividends from and including the original issue date to (but excluding) October 15, 2027 at a fixed rate of 7.75% per annum. From and including October 15, 2027, the dividend rate will reset during each reset period at a fixed rate equal to the five year U.S. Treasury Rate plus a spread of 4.39% per annum.

The dividend for each series of outstanding preferred stock is payable on July 15, 2026 to holders of record as of July 1, 2026.

For further information or questions, please contact Investor Relations at (301) 968-9300 or [email protected].

ABOUT AGNC INVESTMENT CORP.
Founded in 2008, AGNC Investment Corp. (Nasdaq: AGNC) is a leading investor in Agency residential mortgage-backed securities (Agency MBS), which benefit from a guarantee against credit losses by Fannie Mae, Freddie Mac, or Ginnie Mae. We invest on a leveraged basis, financing our Agency MBS assets primarily through repurchase agreements, and utilize dynamic risk management strategies intended to protect the value of our portfolio from interest rate and other market risks.

AGNC has a track record of providing favorable long-term returns for our stockholders through substantial monthly dividend income, with over $15 billion of common stock dividends paid since inception. Our business is a significant source of private capital for the U.S. residential housing market, and our team has extensive experience managing mortgage assets across market cycles. To learn more about The Premier Agency Residential Mortgage REIT, please visit www.AGNC.com, follow us on LinkedIn and X, and sign up for Investor Alerts.   

CONTACT:
Investor Relations - (301) 968-9300

SOURCE AGNC Investment Corp.

You can read all the published reports on inflation, jobs and guess what the Fed will do next. Or you could collect a rich income stream, no matter where interest rates are headed. We choose the latter, and are cash collectors across market conditions.

HOUSTON, April 28, 2026 (GLOBE NEWSWIRE) -- Sysco Corporation (NYSE:SYY) (“Sysco” or the “company”) today announced financial results for its 13-week third fiscal quarter ended March 28, 2026.

Key financial results for the third quarter of fiscal year 2026 include the following (comparisons are to the same period in fiscal year 2025):

Sales increased 4.7%; U.S. Foodservice volume increased 2.3%, U.S. local volumes increased 3.3%;Gross profit increased 6.5% to $3.8 billion;Operating income decreased 9.1% to $619 million, and adjusted operating income decreased 0.6% to $768 million1;Net earnings decreased 15.2% to $340 million, and adjusted net earnings decreased 3.6% to $452 million1;Cash flow from operations increased 11% to $1.5 billion and free cash flow2 increased 19% to $1.1 billion on a year-to-date basis;EBITDA decreased 5.1% to $864 million3, and adjusted EBITDA increased 0.1% to $970 million1,3; andEPS4 decreased 13.4% to $0.71, and adjusted EPS1 decreased 2.1% to $0.94, inclusive of higher incentive compensation costs of $63 million, as previously disclosed, representing a $0.10 impact to EPS. “Sysco delivered strong results in the third quarter of fiscal 2026, driven by continued acceleration in local case volume and expanded gross margins,” said Kevin Hourican, Sysco’s Chair of the Board and Chief Executive Officer. “Importantly, our U.S. local volumes grew 3.3%, the highest quarterly rate in over three years. This exceeded our prior commitment, and we remain confident in delivering over 2.5% U.S. local growth in Q4, which would put us on pace to accelerate on a two-year stack basis. Our USFS segment returned to operating profit growth for the quarter. We are encouraged by the progress, results, and momentum across each of our business segments. As we look ahead, our strong operating foundation, improving productivity, and the compelling opportunity presented by the pending Jetro Restaurant Depot combination, position Sysco to grow profitably, deepen our relationships with more local customers, and create incremental value for our shareholders.”

“Third quarter results reflected strong earnings execution and solid cash flow generation, supported by continued volume acceleration, gross margin expansion, and disciplined cost management, which included headwinds from lapping $63 million of incentive compensation,” said Brandon Sewell, Sysco’s Interim Chief Financial Officer. “Year‑to‑date free cash flow increased 19%, and we are encouraged by improving productivity, particularly in our U.S. Foodservice local business. These results support our confidence in delivering full‑year adjusted EPS at the high end of our $4.50 to $4.60 guidance range, which continues to include an approximate $100 million ($0.16 per diluted share) headwind from lapping lower incentive compensation in fiscal 2025.”

(1) Adjusted financial results, including adjusted operating expense, adjusted operating income (loss), adjusted net earnings, adjusted earnings per share (EPS) and adjusted EBITDA, among others, are non-GAAP financial measures that exclude certain items, which primarily include acquisition-related costs, restructuring and severance costs, and transformational project costs. Adjustments provided herein for fiscal 2026 results of operations also remove the impact of a charge associated with a legal matter. Reconciliations of all non-GAAP financial measures to the nearest corresponding GAAP financial measure are included at the end of this release. For additional information regarding forward-looking full year adjusted EPS see section below entitled “Projected Adjusted EPS Guidance.”
(2) Free cash flow is a non-GAAP financial measure that represents net cash provided from operating activities less purchases of plant and equipment and includes proceeds from sales of plant and equipment. Reconciliations of all non-GAAP financial measures to the nearest corresponding GAAP financial measure are included at the end of this release. 
(3) Earnings before interest, taxes, depreciation and amortization (EBITDA) and adjusted EBITDA are non-GAAP financial measures. Reconciliations of all non-GAAP financial measures to the nearest corresponding GAAP financial measure are included at the end of this release.
(4) Earnings per share (EPS) is shown on a diluted basis, unless otherwise specified.

Third Quarter Fiscal Year 2026 Results (comparisons are to the same period in fiscal year 2025)

Total Sysco

Sales for the third quarter increased 4.7% to $20.5 billion.

Gross profit increased 6.5% to $3.8 billion, and gross margin increased 31 basis points to 18.6%. Product cost inflation was 2.8% at the total enterprise level, as measured by the estimated change in Sysco’s product costs, primarily in the dairy, meat, and seafood categories. The increase in gross profit for the third quarter was primarily driven by positive volumes, strategic sourcing efficiencies, and effective management of product cost inflation.

Operating expenses increased 10.1%, primarily driven by higher incentive compensation, sales headcount and capacity investments. Adjusted operating expenses increased 8.4%1.

Operating income decreased 9.1% to $619 million, and adjusted operating income decreased 0.6% to $768 million1.

U.S. Foodservice Operations

The U.S. Foodservice Operations segment results reflected positive case growth across local and national customers, higher gross margins, partially offset by lapping incentive compensation from the prior year and planned investments in sales headcount and expanded capacity.

Sales for the third quarter increased 3.1% to $14.2 billion. Total case volume within U.S. Foodservice Operations increased 2.3% for the third quarter, while local case volume within U.S. Foodservice Operations increased 3.3%.

Gross profit increased 5.2% to $2.7 billion, and gross margin increased 38 basis points to 19.2%.

Operating expenses increased 6.3%, and adjusted operating expenses increased 5.2%1.

Operating income increased 2.4% to $772 million, and adjusted operating income increased 5.1% to $830 million1.

International Foodservice Operations

The International Foodservice Operations segment delivered strong sales growth, robust local volume gains, and double-digit adjusted operating income growth.

Sales for the third quarter increased 12.4% to $3.9 billion. On a constant currency basis5, sales for the third quarter increased 5.2% to $3.6 billion. Foreign exchange rates increased both International Foodservice Operations sales by 7.2% and total Sysco sales by 1.3% during the quarter.

Gross profit increased 14.6% to $834 million, and gross margin increased 41 basis points to 21.5%. On a constant currency basis5, gross profit increased 6.7% to $777 million. Foreign exchange rates increased both International Foodservice Operations gross profit by 7.9% and total Sysco gross profit by 1.7% during the quarter.

(5) Represents a constant currency adjustment, which eliminates the impact of foreign currency fluctuations on current year results. These adjusted measures are non-GAAP financial measures. Reconciliations of all non-GAAP financial measures to the nearest corresponding GAAP financial measure are included at the end of this release.

Operating expenses increased 18.8%, and adjusted operating expenses increased 15.0%1. On a constant currency basis5, adjusted operating expenses increased 6.7%. Foreign exchange rates increased both International Foodservice Operations operating expenses by 8.3% and total Sysco operating expenses by 1.8% during the quarter.

Operating income decreased 13.5% to $83 million, and adjusted operating income increased 12.5% to $144 million1. On a constant currency basis5, adjusted operating income increased 7.0% to $137 million. Foreign exchange rates increased both International Foodservice Operations operating income by 5.5% and total Sysco operating income by 1.0% during the quarter.

Balance Sheet, Cash Flow and Capital Spending

As of the end of the quarter, the company had a cash balance of $1.9 billion and total liquidity6 of $4.4 billion.

Debt to net earnings was approximately 8.1 times, and Net Debt to adjusted EBITDA7 was approximately 2.8 times.

During the first 39 weeks of fiscal year 2026, Sysco returned $978 million to shareholders via $200 million of share repurchases and $778 million of dividends.

Cash flow from operations was $1.5 billion and free cash flow8 was $1.1 billion for the first 39 weeks of fiscal year 2026.

Capital expenditures, net of proceeds from sales of plant and equipment, for the first 39 weeks of fiscal year 2026 were $330 million.

Details of Previously Announced Acquisition of Jetro Restaurant Depot

On March 30, 2026, subsequent to quarter-end, the company announced that it had entered into an agreement to acquire Jetro Restaurant Depot, a leading U.S. wholesale cash-and-carry foodservice provider serving smaller, independent restaurants and businesses. Jetro Restaurant Depot operates 167 large-format warehouse stores across 35 states, serving more than 725,000 independent restaurants and foodservice operators with a broad assortment of fresh and low-priced products. This transaction remains subject to regulatory review and is expected to close by Sysco’s third quarter of fiscal 2027, subject to the satisfaction of customary closing conditions, including receipt of the regulatory approvals.

(6) Available liquidity includes cash and cash equivalents, available borrowing capacity under our revolving credit facility, less outstanding drawings under our commercial paper program, as of the applicable reporting date.
(7) Net debt to adjusted EBITDA is a non-GAAP financial measure frequently used by investors and credit rating agencies. Our net debt to adjusted EBITDA ratio is calculated using a numerator of our debt minus cash and cash equivalents, divided by the sum of the most recent four quarters of adjusted EBITDA. Reconciliations of all non-GAAP financial measures to the nearest corresponding GAAP financial measure are included at the end of this release.
(8) Free cash flow is a non-GAAP financial measure that represents net cash provided from operating activities less purchases of plant and equipment and includes proceeds from sales of plant and equipment. Reconciliations of all non-GAAP financial measures to the nearest corresponding GAAP financial measure are included at the end of this release. 

Conference Call & Webcast

Sysco will host a conference call to review the company’s third quarter fiscal year 2026 financial results on Tuesday, April 28, 2026, at 10:00 a.m. Eastern Time. A live webcast of the call, accompanying slide presentation and a copy of this news release will be available online at investors.sysco.com.

Key Highlights: 13-Week Period Ended39-Week Period Ended     Financial Comparison:March 28, 2026ChangeMarch 28, 2026ChangeGAAP:    Sales$20.5 billion4.7%$62.4 billion3.6%Gross Profit$3.8 billion6.5%$11.5 billion4.8%Gross Margin18.6%31 bps18.4%20 bpsOperating Expenses$3.2 billion10.1%$9.4 billion6.9%Operating Income$619 million-9.1%
$2.1 billion-4.0%
Operating Margin3.0%-45 bps3.4%-27 bpsNet Earnings$340 million-15.2%
$1.2 billion-7.0%
Diluted Earnings Per Share$0.71-13.4%
$2.51-4.9%
     Non-GAAP(1):    Adjusted Operating Expenses$3.0 billion8.4%
$9.0 billion5.6%Adjusted Operating Income$768 million-0.6%
$2.5 billion1.9%Adjusted Operating Margin3.7%-20 bps4.0%-7 bpsEBITDA$864 million-5.1%
$2.8 billion-3.0%
Adjusted EBITDA$970 million0.1%$3.0 billion1.2%Adjusted Net Earnings$452 million-3.6%
$1.5 billion1.0%Adjusted Diluted Earnings Per Share(2)$0.94-2.1%
$3.083.4%     Case Growth:    U.S. Foodservice2.3% 1.0% Local3.3% 1.4%      Sysco Brand Sales as a % of Cases(3):    U.S. Broadline35.0%-62 bps35.3%-78 bpsLocal45.1%-50 bps45.5%-72 bpsNote:(1) Reconciliations of all non-GAAP financial measures to the nearest respective GAAP financial measures are included at the end of this release.(2) Individual components in the table above may not sum to the totals due to the rounding.(3) Amounts reflect the impact of current customer classifications; prior period history has been reclassified to match the current period customer classification.  Forward-Looking Statements

Statements made in this press release or in our earnings call for the third quarter of fiscal year 2026 include statements that are forward-looking or that express management’s beliefs, expectations or hopes and are forward-looking statements under the Private Securities Litigation Reform Act of 1995. These statements include, among other things, our future financial performance and results, business strategy, plans, goals and objectives, including certain outlook, business trends, our dividend and share repurchase programs, our expectation of future macroeconomic conditions and other statements that are not historical facts, including our expectations regarding foot traffic and volume growth, and benefits to gross margins; and our expectations regarding our future growth, including growth in sales and earnings per share; as well as statements about the expected timing and completion of the proposed transaction with Jetro Restaurant Depot and the anticipated benefits of such proposed transaction.

Such forward-looking statements reflect the views of management at the time such statements are made and are subject to a number of risks, uncertainties, estimates, and assumptions, including those outside of Sysco’s control. Risks and uncertainties include without limitation: the impact of geopolitical, economic and market conditions and developments, including changes in global trade policies and tariffs and foreign conflicts; risks related to our business initiatives; periods of significant or prolonged inflation or deflation and their impact on our product costs, volume, foot traffic, and profitability generally; risks related to our efforts to implement our transformation initiatives and meet our other long-term strategic objectives; risks of interruption of supplies and increase in product costs; risks related to changes in consumer eating habits; and impact of natural disasters or adverse weather conditions, public health crises, adverse publicity or lack of confidence in our products, and product liability claims as well as risks and uncertainties associated with our proposed transaction with Jetro Restaurant Depot, including but not limited to, the occurrence of any event, change or other circumstances that could give rise to the right of either or both parties to terminate the merger agreement; the risk that regulatory approvals may not be obtained or other closing conditions may not be satisfied in a timely manner or at all, as well as the risk that regulatory approvals are obtained subject to conditions that are not anticipated; the risk of other delays in closing the transaction; the possibility that any of the anticipated benefits and projected synergies of the transaction will not be realized or will not be realized within the expected time period; and the risk that the proposed transaction and its announcement could have an adverse effect on the market price of the common stock of Sysco. Should one or more of these risks or uncertainties materialize, or underlying assumptions prove incorrect, actual results may vary materially from those indicated in our forward-looking statements. Therefore, you should not place undue reliance on any of the forward-looking statements contained herein. For more information on these risks and other concerning factors that could cause actual results to differ from those expressed or forecasted, see our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and other filings with the SEC. We do not undertake to update our forward-looking statements, except as required by applicable law.

About Sysco

Sysco is the global leader in selling, marketing and distributing food and related products to customers who prepare meals away from home. This includes restaurants, healthcare and educational facilities, lodging establishments, entertainment venues, and more. Sysco operates 337 distribution centers, in 10 countries, with 75,000 colleagues serving approximately 730,000 customer locations. The company generated sales of more than $81 billion in fiscal year 2025 that ended June 28, 2025.

As the world’s largest food-away-from-home distributor, Sysco offers customized supply chain solutions, bespoke specialty product offerings, and culinary support to drive customers to innovate and optimize their operations. We act as a trusted business partner to our customers, helping them grow through our industry-leading portfolio that includes fresh produce, premium proteins, specialty products, sustainably focused items, equipment and supplies, and innovative culinary solutions.

For more information, visit www.sysco.com. For important news and key information for Sysco investors, visit the Investor Relations section of the company’s website at investors.sysco.com.

SYY-INVESTORS

Sysco Corporation and its Consolidated Subsidiaries
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 $60,232Cost of sales 16,707  16,017  50,924  49,249Gross profit 3,812  3,581  11,505  10,983Operating expenses 3,193  2,900  9,393  8,783Operating income 619  681  2,112  2,200Interest expense 168  149  512  469Other expense (income), net 6  9  44  32Earnings before income taxes 445  523  1,556  1,699Income taxes 105  122  350  402Net earnings$340 $401 $1,206 $1,297        Net earnings:       Basic earnings per share$0.71 $0.82 $2.52 $2.65Diluted earnings per share 0.71  0.82  2.51  2.64        Average shares outstanding 479,344,821  487,519,382  479,150,734  490,080,591Diluted shares outstanding 481,188,586  489,331,460  480,738,926  491,973,759 Sysco Corporation and its Consolidated Subsidiaries
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’ EQUITYCurrent 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 Commitments and contingencies   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  Sysco Corporation and its Consolidated Subsidiaries
CONSOLIDATED CASH FLOWS (Unaudited)
(In Millions) 39-Week Period Ended Mar. 28, 2026 Mar. 29, 2025Cash 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 401   510  Sysco Corporation and its Consolidated Subsidiaries
Non-GAAP Reconciliation (Unaudited)
Impact of Certain Items The discussion of our results includes certain non-GAAP financial measures, including EBITDA and adjusted EBITDA, that we believe provide important perspective with respect to underlying business trends. Other than EBITDA and free cash flow, any non-GAAP financial measures will be denoted as adjusted measures to remove: (1) restructuring charges; (2) expenses associated with our various transformation initiatives; (3) severance charges; and (4) acquisition-related costs consisting of (a) intangible amortization expense and (b) acquisition costs and due diligence costs related to our acquisitions. Adjustments provided herein for fiscal 2026 results of operations also remove the impact of a charge associated with a legal matter. No similar charge was applicable in fiscal 2025. The results of our operations can be impacted due to changes in exchange rates applicable in converting local currencies to U.S. dollars. We measure our results on a constant currency basis. Constant currency operating results are calculated by translating current-period local currency operating results with the currency exchange rates used to translate the financial statements in the comparable prior-year period to determine what the current-period U.S. dollar operating results would have been if the currency exchange rate had not changed from the comparable prior-year period. We also measure our sales growth excluding the impact of our joint venture in Mexico which was divested in the second quarter of fiscal year 2025. Management believes that adjusting its operating expenses, operating income, operating margin, net earnings and diluted earnings per share to remove these Certain Items, presenting its results on a constant currency basis, and adjusting its sales results to exclude the impact of its joint venture in Mexico provides an important perspective with respect to our underlying business trends and results. It provides meaningful supplemental information to both management and investors that (1) is indicative of the performance of the company’s underlying operations and (2) facilitates comparisons on a year-over-year basis. Sysco has a history of growth through acquisitions and excludes from its non-GAAP financial measures the impact of acquisition-related intangible amortization, acquisition costs and due diligence costs for those acquisitions. We believe this approach significantly enhances the comparability of Sysco’s results for fiscal year 2026 and fiscal year 2025. Set forth on the following page is a reconciliation of sales, operating expenses, operating income, net earnings and diluted earnings per share to adjusted results for these measures for the periods presented. Individual components of diluted earnings per share may not be equal to the total presented when added due to rounding. Adjusted diluted earnings per share is calculated using adjusted net earnings divided by diluted shares outstanding. Sysco Corporation and its Consolidated Subsidiaries
Non-GAAP Reconciliation (Unaudited)
Impact of Certain Items
(Dollars in Millions, Except for Share and Per Share Data) 13-Week
Period Ended
Mar. 28, 2026 13-Week
Period Ended
Mar. 29, 2025 Change in
Dollars %/bps
ChangeSales (GAAP)$20,519  $19,598  $921  4.7%Impact of currency fluctuations(1) (252)    (252) (1.3)Comparable sales using a constant currency basis (Non-GAAP)$20,267  $19,598  $669  3.4%        Cost of sales (GAAP)$16,707  $16,017  $690  4.3%        Gross profit (GAAP)$3,812  $3,581  $231  6.5%Impact of currency fluctuations(1) (58)    (58) (1.7)Comparable gross profit adjusted for Certain Items using a constant currency basis (Non-GAAP)$3,754  $3,581  $173  4.8%        Gross margin (GAAP) 18.58%  18.27%   31 bpsImpact of currency fluctuations(1) (0.06)     -6 bpsComparable gross margin adjusted for Certain Items using a constant currency basis (Non-GAAP) 18.52%  18.27%   25 bps        Operating expenses (GAAP)$3,193  $2,900  $293  10.1%Impact of restructuring, transformational project, and other costs(2) (94)  (50)  (44) (88.0)Impact of acquisition-related costs(3) (55)  (42)  (13) (31.0)Operating expenses adjusted for Certain Items (Non-GAAP) 3,044   2,808   236  8.4 Impact of currency fluctuations(1) (51)    (51) (1.8)Comparable operating expenses adjusted for Certain Items using a constant currency basis (Non-GAAP)$2,993  $2,808  $185  6.6%        Operating expense as a percentage of sales (GAAP) 15.56%  14.80%   76 bpsImpact of certain item adjustments (0.72)  (0.47)   -25 bpsAdjusted operating expense as a percentage of sales (Non-GAAP) 14.84%  14.33%   51 bps        Operating income (GAAP)$619  $681  $(62) (9.1)%Impact of restructuring, transformational project, and other costs(2) 94   50   44  88.0 Impact of acquisition-related costs(3) 55   42   13  31.0 Operating income adjusted for Certain Items (Non-GAAP) 768   773   (5) (0.6)Impact of currency fluctuations(1) (7)    (7) (1.0)Comparable operating income adjusted for Certain Items using a constant currency basis (Non-GAAP)$761  $773  $(12) (1.6)%        Operating margin (GAAP) 3.02%  3.47%   -45 bpsOperating margin adjusted for Certain Items (Non-GAAP) 3.74%  3.94%   -20 bpsOperating margin adjusted for Certain Items using a constant currency basis (Non-GAAP) 3.75%  3.94%   -19 bps        Net earnings (GAAP)$340  $401  $(61) (15.2)%Impact of restructuring, transformational project, and other costs(2) 94   50   44  88.0 Impact of acquisition-related costs(3) 55   42   13  31.0 Tax impact of restructuring, transformational project, and other costs(4) (23)  (13)  (10) (76.9)Tax impact of acquisition-related costs(4) (14)  (11)  (3) (27.3)Net earnings adjusted for Certain Items (Non-GAAP)$452  $469  $(17) (3.6)%        Diluted earnings per share (GAAP)$0.71  $0.82  $(0.11) (13.4)%Impact of restructuring, transformational project, and other costs(2) 0.20   0.10   0.10  100.0 Impact of acquisition-related costs(3) 0.11   0.09   0.02  22.2 Tax impact of restructuring, transformational project, and other costs(4) (0.05)  (0.03)  (0.02) (66.7)Tax impact of acquisition-related costs(4) (0.03)  (0.02)  (0.01) (50.0)Diluted earnings per share adjusted for Certain Items (Non-GAAP)(5)$0.94  $0.96  $(0.02) (2.1)%        Diluted shares outstanding 481,188,586   489,331,460      (1)Represents a constant currency adjustment, which eliminates the impact of foreign currency fluctuations on the current year results.(2)Fiscal 2026 includes $43 million related to restructuring costs, severance charges, and costs associated with a legal matter and $51 million related to various transformation initiative costs, primarily consisting of supply chain transformation costs and changes to our business technology strategy. Fiscal 2025 includes $15 million related to restructuring and severance charges and $35 million related to various transformation initiative costs, primarily consisting of supply chain transformation costs and changes to our business technology strategy.(3)Fiscal 2026 includes $42 million of intangible amortization expense and $13 million in acquisition and due diligence costs. Fiscal 2025 includes $32 million of intangible amortization expense and $10 million in acquisition and due diligence costs.(4)The tax impact of adjustments for Certain Items are calculated by multiplying the pretax impact of each Certain Item by the statutory rates in effect for each jurisdiction where the Certain Item was incurred.(5)Individual components of diluted earnings per share may not equal the total presented when added due to rounding. Total diluted earnings per share is calculated using adjusted net earnings divided by diluted shares outstanding. Sysco Corporation and its Consolidated Subsidiaries
Non-GAAP Reconciliation (Unaudited)
Impact of Certain Items
(Dollars in Millions, Except for Share and Per Share Data) 39-Week
Period Ended
Mar. 28, 2026 39-Week
Period Ended
Mar. 29, 2025 Change in
Dollars %/bps
ChangeSales (GAAP)$62,429  $60,232  $2,197  3.6%Impact of Mexico joint venture sales —   (207)  207  0.4 Comparable sales excluding Mexico joint venture (Non-GAAP)$62,429  $60,025  $2,404  4.0%        Sales (GAAP)$62,429  $60,232  $2,197  3.6%Impact of currency fluctuations(1) (481)    (481) (0.8)Comparable sales using a constant currency basis (Non-GAAP)$61,948  $60,232  $1,716  2.8%        Cost of sales (GAAP)$50,924  $49,249  $1,675  3.4%        Gross profit (GAAP)$11,505  $10,983  $522  4.8%Impact of currency fluctuations(1) (115)    (115) (1.1)Comparable gross profit adjusted for Certain Items using a constant currency basis (Non-GAAP)$11,390  $10,983  $407  3.7%        Gross margin (GAAP) 18.43%  18.23%   20 bpsImpact of currency fluctuations(1) (0.04)     -4 bpsComparable gross margin adjusted for Certain Items using a constant currency basis (Non-GAAP) 18.39%  18.23%   16 bps        Operating expenses (GAAP)$9,393  $8,783  $610  6.9%Impact of restructuring, transformational project, and other costs(2) (207)  (107)  (100) (93.5)Impact of acquisition-related costs(3) (155)  (121)  (34) (28.1)Operating expenses adjusted for Certain Items (Non-GAAP) 9,031   8,555   476  5.6 Impact of currency fluctuations(1) (102)    (102) (1.2)Comparable operating expenses adjusted for Certain Items using a constant currency basis (Non-GAAP)$8,929  $8,555  $374  4.4%        Operating expense as a percentage of sales (GAAP) 15.05%  14.58%   47 bpsImpact of certain item adjustments (0.58)  (0.38)   -20 bpsAdjusted operating expense as a percentage of sales (Non-GAAP) 14.47%  14.20%   27 bps        Operating income (GAAP)$2,112  $2,200  $(88) (4.0)%Impact of restructuring, transformational project, and other costs(2) 207   107   100  93.5 Impact of acquisition-related costs(3) 155   121   34  28.1 Operating income adjusted for Certain Items (Non-GAAP) 2,474   2,428   46  1.9 Impact of currency fluctuations(1) (13)    (13) (0.5)Comparable operating income adjusted for Certain Items using a constant currency basis (Non-GAAP)$2,461  $2,428  $33  1.4%        Operating margin (GAAP) 3.38%  3.65%   -27 bpsOperating margin adjusted for Certain Items (Non-GAAP) 3.96%  4.03%   -7 bpsOperating margin adjusted for Certain Items using a constant currency basis (Non-GAAP) 3.97%  4.03%   -6 bps        Net earnings (GAAP)$1,206  $1,297  $(91) (7.0)%Impact of restructuring, transformational project, and other costs(2) 207   107   100  93.5 Impact of acquisition-related costs(3) 155   121   34  28.1 Tax impact of restructuring, transformational project, and other costs(4) (50)  (27)  (23) (85.2)Tax impact of acquisition-related costs(4) (37)  (31)  (6) (19.4)Net earnings adjusted for Certain Items (Non-GAAP)$1,481  $1,467  $14  1.0%        Diluted earnings per share (GAAP)$2.51  $2.64  $(0.13) (4.9)%Impact of restructuring, transformational project, and other costs(2) 0.43   0.22   0.21  95.5 Impact of acquisition-related costs(3) 0.32   0.25   0.07  28.0 Tax impact of restructuring, transformational project, and other costs(4) (0.10)  (0.05)  (0.05) (100.0)Tax impact of acquisition-related costs(4) (0.08)  (0.06)  (0.02) (33.3)Diluted earnings per share adjusted for Certain Items (Non-GAAP)(5)$3.08  $2.98  $0.10  3.4%        Diluted shares outstanding 480,738,926   491,973,759      (1)Represents a constant currency adjustment which eliminates the impact of foreign currency fluctuations on the current year results.(2)Fiscal 2026 includes $63 million related to restructuring costs, severance charges, and costs associated with a legal matter and $144 million related to various transformation initiative costs, primarily consisting of supply chain transformation costs and changes to our business technology strategy. Fiscal 2025 includes $31 million related to restructuring and severance charges and $76 million related to various transformation initiative costs, primarily consisting of supply chain transformation costs and changes to our business technology strategy.(3)Fiscal 2026 includes $108 million of intangible amortization expense and $47 million in acquisition and due diligence costs. Fiscal 2025 includes $97 million of intangible amortization expense and $24 million in acquisition and due diligence costs.(4)The tax impact of adjustments for Certain Items is calculated by multiplying the pretax impact of each Certain Item by the statutory rates in effect for each jurisdiction where the Certain Item was incurred.(5)Individual components of diluted earnings per share may not add up to the total presented due to rounding. Total diluted earnings per share is calculated using adjusted net earnings divided by diluted shares outstanding. Sysco Corporation and its Consolidated Subsidiaries
Segment Results
Non-GAAP Reconciliation (Unaudited)
Impact of Certain Items on Applicable Segments
(Dollars in Millions) 13-Week
Period Ended
Mar. 28, 2026 13-Week
Period Ended
Mar. 29, 2025 Change in
Dollars %/bps
ChangeU.S. FOODSERVICE OPERATIONS       Sales (GAAP)$14,234  $13,800  $434  3.1%Gross profit (GAAP) 2,738   2,603   135  5.2%Gross margin (GAAP) 19.24%  18.86%   38 bps        Operating expenses (GAAP)$1,966  $1,849  $117  6.3%Impact of restructuring, transformational project, and other costs(1) (39)  (16)  (23) NMImpact of acquisition-related costs(2) (19)  (20)  1  5.0 Operating expenses adjusted for Certain Items (Non-GAAP)$1,908  $1,813  $95  5.2%        Operating income (GAAP)$772  $754  $18  2.4%Impact of restructuring, transformational project, and other costs(1) 39   16   23  NMImpact of acquisition-related costs(2) 19   20   (1) (5.0)Operating income adjusted for Certain Items (Non-GAAP)$830  $790  $40  5.1%        INTERNATIONAL FOODSERVICE OPERATIONS       Sales (GAAP)$3,885  $3,457  $428  12.4%Impact of currency fluctuations(3) (249)    (249) (7.2)Comparable sales using a constant currency basis (Non-GAAP)$3,636  $3,457  $179  5.2%        Gross profit (GAAP)$834  $728  $106  14.6%Impact of currency fluctuations(3) (57)    (57) (7.9)Comparable gross profit using a constant currency basis (Non-GAAP)$777  $728  $49  6.7%        Gross margin (GAAP) 21.47%  21.06%   41 bpsImpact of currency fluctuations(3) (0.10)     -10 bpsComparable gross margin using a constant currency basis (Non-GAAP) 21.37%  21.06%   31 bps        Operating expenses (GAAP)$751  $632  $119  18.8%Impact of restructuring and transformational project costs(4) (39)  (13)  (26) NMImpact of acquisition-related costs(2) (22)  (19)  (3) (15.8)Operating expenses adjusted for Certain Items (Non-GAAP) 690   600   90  15.0 Impact of currency fluctuations(3) (50)    (50) (8.3)Comparable operating expenses adjusted for Certain Items using a constant currency basis (Non-GAAP)$640  $600  $40  6.7%        Operating income (GAAP)$83  $96  $(13) (13.5)%Impact of restructuring and transformational project costs(4) 39   13   26  NMImpact of acquisition-related costs(2) 22   19   3  15.8 Operating income adjusted for Certain Items (Non-GAAP) 144   128   16  12.5 Impact of currency fluctuations(3) (7)    (7) (5.5)Comparable operating income adjusted for Certain Items using a constant currency basis (Non-GAAP)$137  $128  $9  7.0%        SYGMA       Sales (GAAP)$2,137  $2,084  $53  2.5%Gross profit (GAAP) 163   166   (3) (1.8)%Gross margin (GAAP) 7.63%  7.97%   -34 bps        Operating expenses (GAAP)$145  $149  $(4) (2.7)%Operating income (GAAP) 18   17   1  5.9%        OTHER       Sales (GAAP)$263  $257  $6  2.3%Gross profit (GAAP) 68   60   8  13.3%Gross margin (GAAP) 25.86%  23.35%   251 bps        Operating expenses (GAAP)$61  $63  $(2) (3.2)%Operating income (loss) (GAAP) 7   (3)  10  NM        GLOBAL SUPPORT CENTER       Gross profit (GAAP)$9  $24  $(15) (62.5)%        Operating expenses (GAAP)$270  $207  $63  30.4%Impact of restructuring and transformational project costs(5) (16)  (21)  5  23.8 Impact of acquisition-related costs(6) (14)  (3)  (11) NMOperating expenses adjusted for Certain Items (Non-GAAP)$240  $183  $57  31.1%        Operating loss (GAAP)$(261) $(183) $(78) (42.6)%Impact of restructuring and transformational project costs(5) 16   21   (5) (23.8)Impact of acquisition-related costs(6) 14   3   11  NMOperating loss adjusted for Certain Items (Non-GAAP)$(231) $(159) $(72) (45.3)%        TOTAL SYSCO       Sales (GAAP)$20,519  $19,598  $921  4.7%Gross profit (GAAP) 3,812   3,581   231  6.5%Gross margin (GAAP) 18.58%  18.27%   31 bps        Operating expenses (GAAP)$3,193  $2,900  $293  10.1%Impact of restructuring, transformational project, and other costs(1) (4) (5) (94)  (50)  (44) (88.0)Impact of acquisition-related costs(2) (6) (55)  (42)  (13) (31.0)Operating expenses adjusted for Certain Items (Non-GAAP)$3,044  $2,808  $236  8.4%        Operating income (GAAP)$619  $681  $(62) (9.1)%Impact of restructuring, transformational project, and other costs(1) (4) (5) 94   50   44  88.0 Impact of acquisition-related costs(2) (6) 55   42   13  31.0 Operating income adjusted for Certain Items (Non-GAAP)$768  $773  $(5) (0.6)% (1)Primarily represents severance charges, transformation initiative costs, and costs associated with a legal matter.(2)Fiscal 2026 and fiscal 2025 include intangible amortization expense and acquisition costs.(3)Represents a constant currency adjustment, which eliminates the impact of foreign currency fluctuations on current year results.(4)Includes restructuring and transformation initiative costs primarily in Europe.(5)Includes various transformation initiative costs, primarily consisting of changes to our business technology strategy.(6)Represents due diligence costs.NMRepresents that the percentage change is not meaningful. Sysco Corporation and its Consolidated Subsidiaries
Segment Results
Non-GAAP Reconciliation (Unaudited)
Impact of Certain Items on Applicable Segments
(Dollars in Millions) 39-Week
Period Ended
Mar. 28, 2026 39-Week
Period Ended
Mar. 29, 2025 Change in
Dollars %/bps
ChangeU.S. FOODSERVICE OPERATIONS       Sales (GAAP)$43,397  $42,206  $1,191  2.8%Gross profit (GAAP) 8,281   8,003   278  3.5%Gross margin (GAAP) 19.08%  18.96%   12 bps        Operating expenses (GAAP)$5,809  $5,507  $302  5.5%Impact of restructuring, transformational project, and other costs(1) (54)  (26)  (28) NMImpact of acquisition-related costs(2) (72)  (53)  (19) (35.8)Operating expenses adjusted for Certain Items (Non-GAAP)$5,683  $5,428  $255  4.7%        Operating income (GAAP)$2,472  $2,496  $(24) (1.0)%Impact of restructuring, transformational project, and other costs(1) 54   26   28  NMImpact of acquisition-related costs(2) 72   53   19  35.8 Operating income adjusted for Certain Items (Non-GAAP)$2,598  $2,575  $23  0.9%        INTERNATIONAL FOODSERVICE OPERATIONS       Sales (GAAP)$11,851  $10,978  $873  8.0%Impact of Mexico joint venture sales —   (207)  207  2.0 Comparable sales excluding Mexico joint venture (Non-GAAP)$11,851  $10,771  $1,080  10.0%        Sales (GAAP)$11,851  $10,978  $873  8.0%Impact of currency fluctuations(3) (477)    (477) (4.4)Comparable sales using a constant currency basis (Non-GAAP)$11,374  $10,978  $396  3.6%        Gross profit (GAAP)$2,492  $2,262  $230  10.2%Impact of currency fluctuations(3) (114)    (114) (5.1)Comparable gross profit using a constant currency basis (Non-GAAP)$2,378  $2,262  $116  5.1%        Gross margin (GAAP) 21.03%  20.60%   43 bpsImpact of currency fluctuations(3) (0.12)     -12 bpsComparable gross margin using a constant currency basis (Non-GAAP) 20.91%  20.60%   31 bps        Operating expenses (GAAP)$2,177  $1,970  $207  10.5%Impact of restructuring and transformational project costs(4) (91)  (39)  (52) NMImpact of acquisition-related costs(2) (47)  (56)  9  16.1 Operating expenses adjusted for Certain Items (Non-GAAP) 2,039   1,875   164  8.7 Impact of currency fluctuations(3) (102)    (102) (5.4)Comparable operating expenses adjusted for Certain Items using a constant currency basis (Non-GAAP)$1,937  $1,875  $62  3.3%        Operating income (GAAP)$315  $292  $23  7.9%Impact of restructuring and transformational project costs(4) 91   39   52  NMImpact of acquisition-related costs(2) 47   56   (9) (16.1)Operating income adjusted for Certain Items (Non-GAAP) 453   387   66  17.1 Impact of currency fluctuations(3) (12)    (12) (3.1)Comparable operating income adjusted for Certain Items using a constant currency basis (Non-GAAP)$441  $387  $54  14.0%        SYGMA       Sales (GAAP)$6,392  $6,246  $146  2.3%Gross profit (GAAP) 496   492   4  0.8%Gross margin (GAAP) 7.76%  7.88%   -12 bps        Operating expenses (GAAP)$432  $438  $(6) (1.4)%Operating income (GAAP) 64   54   10  18.5%        OTHER       Sales (GAAP)$789  $802  $(13) (1.6)%Gross profit (GAAP) 202   197   5  2.5%Gross margin (GAAP) 25.60%  24.56%   104 bps        Operating expenses (GAAP)$185  $188  $(3) (1.6)%Operating income (GAAP) 17   9   8  88.9%        GLOBAL SUPPORT CENTER       Gross profit (GAAP)$34  $29  $5  17.2%        Operating expenses (GAAP)$790  $680  $110  16.2%Impact of restructuring and transformational project costs(5) (62)  (42)  (20) 47.6 Impact of acquisition-related costs(6) (36)  (12)  (24) NMOperating expenses adjusted for Certain Items (Non-GAAP)$692  $626  $66  10.5%        Operating loss (GAAP)$(756) $(651) $(105) (16.1)%Impact of restructuring and transformational project costs(5) 62   42   20  47.6 Impact of acquisition-related costs(6) 36   12   24  NMOperating loss adjusted for Certain Items (Non-GAAP)$(658) $(597) $(61) (10.2)%        TOTAL SYSCO       Sales (GAAP)$62,429  $60,232  $2,197  3.6%Gross profit (GAAP) 11,505   10,983   522  4.8%Gross margin (GAAP) 18.43%  18.23%   20 bps        Operating expenses (GAAP)$9,393  $8,783  $610  6.9%Impact of restructuring, transformational project, and other costs(1) (4) (5) (207)  (107)  (100) (93.5)Impact of acquisition-related costs(2) (6) (155)  (121)  (34) (28.1)Operating expenses adjusted for Certain Items (Non-GAAP)$9,031  $8,555  $476  5.6%        Operating income (GAAP)$2,112  $2,200  $(88) (4.0)%Impact of restructuring, transformational project, and other costs(1) (4) (5) 207   107   100  93.5 Impact of acquisition-related costs(2) (6) 155   121   34  28.1 Operating income adjusted for Certain Items (Non-GAAP)$2,474  $2,428  $46  1.9% (1)Primarily represents severance charges, transformation initiative costs, and costs associated with a legal matter.(2)Fiscal 2026 and fiscal 2025 include intangible amortization expense and acquisition costs.(3)Represents a constant currency adjustment, which eliminates the impact of foreign currency fluctuations on current year results.(4)Includes restructuring and transformation initiative costs primarily in Europe.(5)Includes various transformation initiative costs, primarily consisting of changes to our business technology strategy.(6)Represents due diligence costs.NMRepresents that the percentage change is not meaningful. Sysco Corporation and its Consolidated Subsidiaries
Non-GAAP Reconciliation (Unaudited)
Free Cash Flow
(In Millions)

Free cash flow represents net cash provided from operating activities less purchases of plant and equipment and includes proceeds from sales of plant and equipment. Sysco considers free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business after the purchases and sales of buildings, fleet, equipment and technology, which may potentially be used to pay for, among other things, strategic uses of cash including dividend payments, share repurchases and acquisitions. However, free cash flow may not be available for discretionary expenditures, as it may be necessary that we use it to make mandatory debt service or other payments. Free cash flow should not be used as a substitute for the most comparable GAAP financial measure in assessing the company’s liquidity for the periods presented. An analysis of any non-GAAP financial measure should be used in conjunction with results presented in accordance with GAAP. In the table that follows, free cash flow for each period presented is reconciled to net cash provided by operating activities.

 39-Week
Period Ended
Mar. 28, 2026 39-Week
Period Ended
Mar. 29, 2025 39-Week
Period Change
in DollarsNet cash provided by operating activities (GAAP)$1,463  $1,317  $146 Additions to plant and equipment (461)  (532)  71 Proceeds from sales of plant and equipment 131   169   (38)Free Cash Flow (Non-GAAP)$1,133  $954  $179  Sysco Corporation and its Consolidated Subsidiaries
Non-GAAP Reconciliation (Unaudited)
Impact of Certain Items on Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)
(Dollars in Millions)

EBITDA represents net earnings (loss) plus (i) interest expense, (ii) income tax expense and benefit, (iii) depreciation and (iv) amortization. The net earnings (loss) component of our EBITDA calculation is impacted by Certain Items that we do not consider representative of our underlying performance. As a result, in the non-GAAP reconciliations below for each period presented, adjusted EBITDA is computed as EBITDA plus the impact of Certain Items, excluding certain items related to interest expense, income taxes, depreciation and amortization. Sysco's management considers growth in this metric to be a measure of overall financial performance that provides useful information to management and investors about the profitability of the business, as it facilitates comparison of performance on a consistent basis from period to period by providing a measurement of recurring factors and trends affecting our business. Additionally, it is a commonly used component metric used to inform on capital structure decisions. Adjusted EBITDA should not be used as a substitute for the most comparable GAAP financial measure in assessing the company’s financial performance for the periods presented. An analysis of any non-GAAP financial measure should be used in conjunction with results presented in accordance with GAAP. In the tables that follow, adjusted EBITDA for each period presented is reconciled to net earnings.

 13-Week
Period Ended
Mar. 28, 2026 13-Week
Period Ended
Mar. 29, 2025 Change in
Dollars % ChangeNet earnings (GAAP)$340  $401  $(61) (15.2)%Interest (GAAP) 168   149   19  12.8 Income taxes (GAAP) 105   122   (17) (13.9)Depreciation and amortization (GAAP) 251   238   13  5.5 EBITDA (Non-GAAP)$864  $910  $(46) (5.1)%Certain Item adjustments:       Impact of restructuring, transformational project, and other costs(1)$93  $49  $44  89.8 Impact of acquisition-related costs(2) 13   10   3  30.0 EBITDA adjusted for Certain Items (Non-GAAP)(3)$970  $969  $1  0.1%Other expense (income), net 6   9   (3) (33.3)Depreciation and amortization, as adjusted (Non-GAAP)(4) (208)  (205)  (3) (1.5)Operating income adjusted for Certain Items (Non-GAAP)$768  $773  $(5) (0.6)% (1)Fiscal 2026 and fiscal 2025 include charges related to restructuring and severance, as well as various transformation initiative costs, primarily consisting of supply chain transformation costs and changes to our business technology strategy, excluding charges related to accelerated depreciation. In addition, fiscal 2026 includes charges associated with a legal matter.(2)Fiscal 2026 and fiscal 2025 include acquisition and due diligence costs.(3)In arriving at adjusted EBITDA, Sysco does not adjust out interest income of $6 million and $7 million or non-cash stock compensation expense of $31 million and $15 million in fiscal 2026 and fiscal 2025, respectively.(4)Fiscal 2026 includes $251 million in GAAP depreciation and amortization expense, less $43 million of Non-GAAP depreciation and amortization expense primarily related to acquisitions. Fiscal 2025 includes $238 million in GAAP depreciation and amortization expense, less $33 million of Non-GAAP depreciation and amortization expense primarily related to acquisitions.  39-Week
Period Ended
Mar. 28, 2026 39-Week
Period Ended
Mar. 29, 2025 Change in
Dollars % ChangeNet earnings (GAAP)$1,206  $1,297  $(91) (7.0)%Interest (GAAP) 512   469   43  9.2 Income taxes (GAAP) 350   402   (52) (12.9)Depreciation and amortization (GAAP) 724   709   15  2.1 EBITDA (Non-GAAP)$2,792  $2,877  $(85) (3.0)%Certain Item adjustments:       Impact of restructuring, transformational project, and other costs(1) 203   104   99  95.2 Impact of acquisition-related costs(2) 46   24   22  91.7 EBITDA adjusted for Certain Items (Non-GAAP)(3)$3,041  $3,005  $36  1.2%Other expense (income), net 44   32   12  37.5 Depreciation and amortization, as adjusted (Non-GAAP)(4) (611)  (609)  (2) (0.3)Operating income adjusted for Certain Items (Non-GAAP)$2,474  $2,428  $46  1.9% (1)Fiscal 2026 and 2025 include charges related to restructuring and severance, as well as various transformation initiative costs, primarily consisting of supply chain transformation costs and changes to our business technology strategy, excluding charges related to accelerated depreciation. In addition, fiscal 2026 includes charges associated with a legal matter.(2)Fiscal 2026 and 2025 include acquisition and due diligence costs.(3)In arriving at adjusted EBITDA, Sysco does not exclude interest income of $18 million and $22 million or non-cash stock compensation expense of $95 million and $74 million for fiscal 2026 and fiscal 2025, respectively.(4)Fiscal 2026 includes $724 million in GAAP depreciation and amortization expense, less $113 million of Non-GAAP depreciation and amortization expense primarily related to acquisitions. Fiscal 2025 includes $709 million in GAAP depreciation and amortization expense, less $100 million of Non-GAAP depreciation and amortization expense primarily related to acquisitions. Sysco Corporation and its Consolidated Subsidiaries
Non-GAAP Reconciliation (Unaudited)
Net Debt to Adjusted EBITDA
(In Millions)

Net Debt to Adjusted EBITDA is a non-GAAP financial measure frequently used by investors and credit rating agencies. It is an important measure used by management to evaluate our access to liquidity, and we believe it is a representation of our financial strength. Our Net Debt to Adjusted EBITDA ratio is calculated using a numerator of our debt minus cash and cash equivalents, divided by the sum of the most recent four quarters of Adjusted EBITDA. In the table that follows, we have provided the calculation of our debt and net debt as a ratio of Adjusted EBITDA.

  Mar. 28, 2026Current maturities of long-term debt $1,190 Long-term debt  12,818 Total Debt (GAAP)  14,008 Cash & Cash Equivalents  (1,900)Net Debt (Non-GAAP) $12,108    Net Earnings for the previous 12 months (GAAP) $1,736 Adjusted EBITDA for the previous 12 months (Non-GAAP)(1) $4,327    Total Debt/Net Earnings Ratio (GAAP)  8.07 Total Debt/Adjusted EBITDA Ratio (Non-GAAP)  3.24 Net Debt/Adjusted EBITDA Ratio (Non-GAAP)  2.80    Note:(1) Refer to non-GAAP reconciliation at the end of this release. Sysco Corporation and its Consolidated Subsidiaries
Non-GAAP Reconciliation (Unaudited)
Impact of Certain Items on Earnings Before Interest, Taxes, Depreciation and Amortization (Trailing Twelve Months)
(In Millions)

 13-Week
Period Ended
Mar. 28, 2026 13-Week
Period Ended
Dec. 27, 2025 13-Week
Period Ended
Sep. 27, 2025 13-Week
Period Ended
Jun. 28, 2025 TotalNet earnings (GAAP)$340 $389 $476 $531 $1,736Interest (GAAP) 168  173  172  166  679Income taxes (GAAP) 105  121  124  186  536Depreciation and amortization (GAAP) 251  240  233  234  958EBITDA (Non-GAAP)$864 $923 $1,005 $1,117 $3,909Certain Item adjustments:         Impact of restructuring, transformational project, and other costs(1) 93  55  54  74  276Impact of acquisition-related costs(2) 13  23  11  3  50Impact of goodwill impairment —  —  —  92  92EBITDA adjusted for Certain Items (Non-GAAP)(3)$970 $1,001 $1,070 $1,286 $4,327 (1)Includes charges related to restructuring and severance, as well as various transformation initiative costs, primarily consisting of supply chain transformation costs and changes to our business technology strategy, excluding charges related to accelerated depreciation. In addition, the 13-week period ended Mar. 28, 2026 includes charges associated with a legal matter.(2)Includes acquisition and due diligence costs.(3)In arriving at adjusted EBITDA, Sysco does not adjust out interest income of $6 million or non-cash stock compensation expense of $31 million in Q3 fiscal 2026, interest income of $5 million or non-cash stock compensation expense of $33 million in Q2 fiscal 2026, interest income of $6 million or non-cash stock compensation expense of $31 million in Q1 fiscal 2026, nor interest income of $8 million or non-cash stock compensation expense of $19 million in Q4 fiscal 2025. Projected Adjusted EPS Guidance

Adjusted earnings per share is a non-GAAP financial measure; however, we cannot predict with certainty the magnitude or scope of certain items that would be included in the most directly comparable GAAP measure for the relevant future periods, and such items may be significant. Due to these uncertainties, we cannot provide a quantitative reconciliation of projected adjusted EPS to the most directly comparable GAAP financial measure without unreasonable effort. However, we expect to calculate adjusted earnings per share for future periods in the same manner as the reconciliations provided for the historical periods herein.

For more information contact:

Sysco Corporation (SYY) Q3 2026 Earnings Call Transcript

Sysco is rated a Buy, with a 19% pullback creating an attractive entry point and 18% upside to consensus target. The $29.1B Restaurant Depot acquisition is transformative, adding 20% revenue, 45% EBITDA, and 55% free cash flow, with rapid accretion expected. Q3 FY26 saw the strongest U.S. local volume growth in three years, driving margin expansion and reinforcing the core business's operational momentum.

May 20, 2026 16:35 ET  | Source: Sysco Corporation

HOUSTON, May 20, 2026 (GLOBE NEWSWIRE) -- Sysco Corporation (NYSE:SYY) today announced that the Company will webcast its presentation from the 2026 Deutsche Bank Access Global Consumer Conference in Paris, France on Tuesday, June 2, at 8:45 a.m. CT or 3:45 p.m. CEST.

The live webcast for the event can be accessed at investors.sysco.com. An archived replay of the webcast will be available shortly after the live event is completed.

For purposes of public disclosure, including this and future similar events, Sysco uses the investor relations portion of its website as the primary channel for publishing key information to its investors, some of which may contain material and previously non-public information.

About Sysco

Sysco is the global leader in selling, marketing and distributing food and related products to customers who prepare meals away from home. This includes restaurants, healthcare and educational facilities, lodging establishments, entertainment venues, and more. Sysco operates 337 distribution centers, in 10 countries, with 75,000 colleagues serving approximately 730,000 customer locations. The company generated sales of more than $81 billion in fiscal year 2025 that ended June 28, 2025.

As the world’s largest food-away-from-home distributor, Sysco offers customized supply chain solutions, bespoke specialty product offerings, and culinary support to drive customers to innovate and optimize their operations. We act as a trusted business partner to our customers, helping them grow through our industry-leading portfolio that includes fresh produce, premium proteins, specialty products, sustainably focused items, equipment and supplies, and innovative culinary solutions.

For more information, visit www.sysco.com. For important news and key information for Sysco investors, visit the Investor Relations section of the company’s website at investors.sysco.com.

For more information contact:
  Kevin KimCassandra MauelInvestor ContactMedia [email protected]@sysco.comT 281-584-1219T 281-584-1390   SYY- INVESTORS

HOUSTON, May 27, 2026 (GLOBE NEWSWIRE) -- Sysco Corporation (NYSE:SYY), the global leader in food distribution, has been awarded a 2026 Newsweek AI Impact Award for an innovative enterprise-wide AI application that enhances supply chain processes, drives sales productivity and elevates the customer e-commerce experience.

Sysco is being recognized in the AI Brand & Retail – Best Outcomes category for creating and scaling the Sysco Agentic Ecosystem (SAGE), a company-wide AI capability designed to help move AI from experimentation into everyday business operations across sales, supply chain, customer experience and back-office functions.

        “SAGE represents a major step forward in responsible AI operationalization across a complex, global enterprise,” said Sysco Interim Chief Information and Digital Officer Navin Advani. “By embedding AI directly into workflows – from sales enablement and customer engagement to supply chain planning, inventory optimization, and back-office functions – we are transforming AI from a set of tools into a durable operating capability.”

Delivering Measurable Outcomes Across Retail and Supply Chain 
SAGE helps teams across Sysco automate workflows, surface insights faster and improve decision-making with AI-enabled capabilities supported by human oversight. This architecture supports a broad range of business-critical use cases, including: 

E-commerce and sales enablement, powering more personalized digital experiences, smarter product discovery through Sysco Shop while enabling our sales consultants with Next Best Actions (NBAs)Supply chain optimization, helping teams improve forecasting, inventory decisions, product flow and service reliabilityPrediction and forecasting, using real-time signals to help teams respond more proactively to changing customer demand and operational conditions
Within months of deployment, SAGE is being scaled from pilots to production, powering multiple live agentic solutions and supporting millions of business interactions across Sysco’s enterprise. 

Built for Scale, Governance, and the Future of AI 
SAGE is the connective intelligence layer unifying external capabilities and models, with Sysco’s internal data and systems to build AI-powered workflows across Sysco’s businesses. Unlike traditional AI platforms, SAGE is model-agnostic and can run on any cloud infrastructure This design allows Sysco to adopt new AI technologies while maintaining strong security, compliance and human-in-the-loop controls.

 By standardizing the development, governance and deployment of agents, SAGE enables Sysco to rapidly scale AI solutions to drive faster time to value across Sysco businesses.

Recognition from Newsweek 
Newsweek’s AI Impact Awards recognize organizations that demonstrate measurable, real-world impact from artificial intelligence, honoring innovations that go beyond experimentation to drive lasting operational and business value.

This recognition underscores Sysco’s leadership in applying AI responsibly to solve complex retail and supply chain challenges at enterprise scale—setting a benchmark for how agentic AI can be operationalized across industries.

About Sysco
Sysco is the global leader in selling, marketing and distributing food and related products to customers who prepare meals away from home. This includes restaurants, healthcare and educational facilities, lodging establishments, entertainment venues, and more. Sysco operates 339 distribution centers, in 10 countries, with 75,000 colleagues serving approximately 730,000 customer locations. The company generated sales of more than $81 billion in fiscal year 2025 that ended June 28, 2025.

As the world’s largest food-away-from-home distributor, Sysco offers customized supply chain solutions, bespoke specialty product offerings, and culinary support to drive customers to innovate and optimize their operations. We act as a trusted business partner to our customers, helping them grow through our industry-leading portfolio that includes fresh produce, premium proteins, specialty products, sustainably focused items, equipment and supplies, and innovative culinary solutions.

For more information, visit www.sysco.com. For important news and key information for Sysco investors, visit the Investor Relations section of the company’s website at investors.sysco.com.

Follow us:
https://www.linkedin.com/company/sysco/
https://www.instagram.com/syscofoodie/
https://www.facebook.com/SyscoFoods
https://x.com/Sysco

For more information contact:

                                                                                        Media Contact
Ramit Plushnick-Masti                           
[email protected]
713-703-4898

SYY-NEWS

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.

The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.

It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.

That's where the Style Scores come in.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.

The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Sysco (SYY - Free Report) Headquartered in Houston, TX, Sysco Corporation, through its subsidiaries, markets and distributes a range of food and related products primarily to the foodservice, or food-away-from-home, industry. The company serves approximately 730,000 customer locations, including restaurants, health care and educational facilities, lodging establishments and other foodservice customers. Sysco operates 337 distribution centers across 10 countries and has approximately 75,000 colleagues. In fiscal 2025, the company generated sales of more than $81 billion.

SYY is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 16.54; value investors should take notice.

Three analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.00 to $4.59 per share. SYY boasts an average earnings surprise of +2.1%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, SYY should be on investors' short list.

June 12, 2026 11:00 ET  | Source: Sysco Corporation

HOUSTON, June 12, 2026 (GLOBE NEWSWIRE) -- Sysco Corporation has spent months planning, hiring, stocking inventory and expanding its US fleet in 11 host cities to make sure the nearly 5 million visitors are properly fed while watching the 2026 FIFA World Cup games.

A task force of dozens of Sysco colleagues collaborated with local officials and stakeholders to understand and respond to expected demand, navigate complex logistics and security arrangements and make sure each city and all restaurant customers score big with visitors.

To help customers succeed during an event that is expected to have billions of dollars of economic impact in host cities, Sysco has:

Prepared to increase inventory in host cities by about 5%, including: 3 million extra pounds of French fries500,000 more pounds of frozen chicken tenders255,000 more pounds of ground beefAbout 10% more water on average Secured 80 additional trucks/trailersHired dozens of warehouse selectors and delivery partners Sales teams have also worked closely with customers to prepare them to host visitors from around the world by assisting with the creation of specialized menus, technology that better suits the culture of international guests and fun items, such as soccer ball-shaped ice cubes.

Want more information about what it takes to feed your host city? Email [email protected] to receive local data.

About Sysco

Sysco is the global leader in selling, marketing and distributing food and related products to customers who prepare meals away from home. This includes restaurants, healthcare and educational facilities, lodging establishments, entertainment venues, and more. Sysco operates 339 distribution centers, in 10 countries, with 75,000 colleagues serving approximately 730,000 customer locations. The company generated sales of more than $81 billion in fiscal year 2025 that ended June 28, 2025.

As the world’s largest food-away-from-home distributor, Sysco offers customized supply chain solutions, bespoke specialty product offerings, and culinary support to drive customers to innovate and optimize their operations. We act as a trusted business partner to our customers, helping them grow through our industry-leading portfolio that includes fresh produce, premium proteins, specialty products, sustainably focused items, equipment and supplies, and innovative culinary solutions.

For more information, visit www.sysco.com. For important news and key information for Sysco investors, visit the Investor Relations section of the company’s website at investors.sysco.com.

Follow us:
https://www.linkedin.com/company/sysco/
https://www.instagram.com/syscofoodie/
https://www.facebook.com/SyscoFoods
https://x.com/Sysco

For more information contact:

Media Contact 
Ramit Plushnick-Masti
[email protected]
713-703-4898

Photos accompanying this announcement are available at 

https://www.globenewswire.com/NewsRoom/AttachmentNg/a25d5d16-e41b-4522-b3a8-243adf53a30c

https://www.globenewswire.com/NewsRoom/AttachmentNg/77cb0d04-5f8a-4f2a-85e0-e5286e8916a4

https://www.globenewswire.com/NewsRoom/AttachmentNg/d4b5f17e-f9b5-4e06-9672-d5a5ed1683a4

SYY-NEWS

https://sysco.com/

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OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has assigned Long-Term Issue Credit Ratings of “a+” (Excellent) to Chubb INA Holdings LLC (Chubb) (Delaware) recently announced CNY 4.0 billion (approximately USD 586 million) issuance of senior unsecured bonds in the Hong Kong market in two tranches, which are guaranteed by Chubb Limited: CNY 2.5 billion 2.4% senior unsecured bonds due 2031; and CNY 1.5 billion 2.85% senior unsecured bonds due 2036. The outlook assigned to these Credit Ratings (rating) is stable.

Chubb intends to use the net proceeds from these offerings for general corporate purposes, which may include the redemption, repurchase or repayment of outstanding indebtedness.

Chubb Limited is the Swiss-incorporated holding company of the Chubb Group of Insurance Companies. At March 31, 2026, Chubb had total assets of USD 275.5 billion and shareholders’ equity (excluding noncontrolling interests) of USD 73.8 billion.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2026 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has assigned a Long-Term Issue Credit Rating of “a+” (Excellent) to Chubb INA Holdings LLC’s (Chubb) (Delaware) recently announced USD 1.0 billion issuance of 5.3% senior unsecured notes due 2036 in the U.S. market, which are guaranteed by Chubb Limited. The outlook assigned to this Credit Rating is stable.

Chubb intends to use the net proceeds from this offering for general corporate purposes, which may include the redemption, repurchase or repayment of outstanding indebtedness.

Chubb Limited is the Swiss-incorporated holding company of the Chubb Group of Insurance Companies. At March 31, 2026, Chubb had total assets of USD 275.5 billion and shareholders’ equity (excluding noncontrolling interests) of USD 73.8 billion.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2026 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

More News From A.M. Best Rating Services, Inc.

Back to Newsroom

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.

It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Chubb (CB - Free Report) Chubb Limited was formerly known as ACE Limited. ACE Limited after acquiring The Chubb Corp in Jan 2016 assumed the name of Chubb. Headquartered in Zurich, Switzerland, the company boasts being one of the world’s largest providers of property and casualty (P&C) insurance and reinsurance and largest publicly traded P&C insurer, based on market capitalization of $86 billion. Chubb has diversified through acquisitions into many specialty lines, including marine, medical risk, excess property, environmental and terrorism insurance and has local operations in 54 countries and territories. Chubb provides specialized insurance products such as personal accident, supplemental health and life insurance to individuals in select countries. Its reinsurance operations include both P&C and life companies.

CB is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 12.26; value investors should take notice.

10 analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.38 to $26.78 per share. CB boasts an average earnings surprise of +12.4%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, CB should be on investors' short list.

It has been about a month since the last earnings report for Chubb (CB - Free Report) . Shares have added about 0.9% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Chubb due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

CB Q1 Earnings & Revenues Beat on Higher Underwriting Profit

Chubb Limited reported first-quarter 2026 core operating income of $6.82 per share, which outpaced the Zacks Consensus Estimate by 5.2%. The bottom line increased 85.2% year over year.

Total operating revenues improved 11.8% year over year to $15.3 billion. The top line beat the Zacks Consensus Estimate by 3%.
Chubb Limited’s strong performance was driven by strong growth in P&C underwriting income, investment income and life income. These results were further supported by lower catastrophe losses, leading to an improved combined ratio.

Quarter in Detail

Net premiums written improved 10.7% year over year to $14 billion in the quarter. Our estimate was $13.6 billion, while the Zacks Consensus Estimate was pegged at $13.5 billion.

Net investment income was $1.7 billion, up 9.5% year over year. The Zacks Consensus Estimate was pegged at $1.8 billion, and our estimate was $2 billion.

Property and casualty (P&C) underwriting income was $1.8 billion, reflecting a fourfold increase year over year. Global P&C underwriting income, excluding Agriculture, was $1.6 billion, up more than fourfold year over year.

Chubb Limited incurred pre-tax net catastrophe losses of $500 million, narrower than the year-ago quarter’s loss of $1.64 billion. The losses include $1.47 billion from the California wildfires.

The P&C combined ratio improved 1,170 basis points (bps) on a year-over-year basis to 84% in the quarter under review. The Zacks Consensus Estimate for the combined ratio was pegged at 83, while our estimate was 76.4.

Segmental Update

North America Commercial P&C Insurance: Net premiums written increased 2.3% year over year to $4.7 billion. Our estimate was $5 billion. The combined ratio deteriorated 190 bps to 84%. Our estimate was 72.6%.

North America Personal P&C Insurance: Net premiums written climbed 8.3% year over year to $1.7 billion. Our estimate was $1.7 billion. The combined ratio improved 7,550 bps to 84%. Our estimate was 125.6%.

North America Agricultural Insurance: Net premiums written increased 12.7% from the year-ago quarter to $311 million. Our estimate was $313.8 million. The combined ratio improved 3,000 bps to 37.5%. Our estimate was 74.3%.

Overseas General Insurance: Net premiums written jumped 14.4% year over year to $4.4 billion. Our estimate was $4.2 billion. The combined ratio deteriorated 20 bps to 83.6%. Our estimate was 75%.

Life Insurance: Net premiums written increased 33.1% year over year to $2.3 billion. Our estimate was $1.8 billion. The Life Insurance segment income was $316 million, up 8.5%.

Financial Update

The cash balance of $2.6 billion as of March 31, 2026, increased 6.6% from the 2025-end level. Total shareholders’ equity grew 0.2% from the level at 2025 end to $79.9 billion as of March 31, 2026. Book value per share, as of March 31, 2026, was $189.93, up 0.7% from the figure as of Dec. 31, 2025.

Core operating return on tangible equity expanded 760 bps year over year to 20.6%. Operating cash flow was $3.95 billion in the quarter under consideration, while adjusted operating cash flow was $3.80 billion.

Capital Deployment

In the quarter, Chubb Limited bought back shares worth $1.14 billion and paid $380 million in dividends.

How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in estimates review.

VGM ScoresAt this time, Chubb has a average Growth Score of C, a score with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a score of B on the value side, putting it in the second quintile for value investors.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Chubb has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry PlayerChubb belongs to the Zacks Insurance - Property and Casualty industry. Another stock from the same industry, Travelers (TRV - Free Report) , has gained 1.8% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.

Travelers reported revenues of $11.88 billion in the last reported quarter, representing a year-over-year change of +0%. EPS of $7.71 for the same period compares with $1.91 a year ago.

Travelers is expected to post earnings of $4.85 per share for the current quarter, representing a year-over-year change of -25.5%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.1%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Travelers. Also, the stock has a VGM Score of A.

Key Takeaways CB expands through acquisitions, including Liberty Mutual's insurance businesses in Thailand and Vietnam. Premium growth is supported by commercial P&C rate increases, new business and strong renewal retention. Strong capital and cash generation support dividend growth, buybacks and future growth investments. Chubb Limited (CB - Free Report) has been trading above its 200-day simple moving average (SMA), signaling a short-term bullish trend. Its share price, as of May 29, 2026, was $311.73, down 9.8% from its 52-week high of $345.67.

The 200-day SMA is a key indicator for traders and analysts to identify support and resistance levels. It is considered particularly important as this is the first marker of an uptrend or downtrend.

With a market capitalization of $120.90 billion, the average volume of shares traded in the last three months was 1.7 million.

CB is an OutperformerShares of Chubb have gained 4% in the past year, outperforming the industry’s decline of 7.6%.

Image Source: Zacks Investment Research

CB’s Expensive ValuationShares of Chubb Limited are trading at a premium compared with the Zacks Property and Casualty Insurance industry. Its forward price-to-book value of 1.51X is higher than the industry average of 1.34X.

Shares of The Travelers Companies, Inc. (TRV - Free Report) , W.R. Berkley Corporation (WRB - Free Report) and Kinsale Capital Group, Inc. (KNSL - Free Report) are trading at a multiple higher than the industry average.

CB’s Growth Projection EncouragesThe Zacks Consensus Estimate for Chubb Limited’s 2026 earnings per share indicates a year-over-year increase of 8.1%. The consensus estimate for revenues is pegged at $64.40 billion, implying a year-over-year improvement of 7.4%.

The consensus estimate for 2027 earnings per share and revenues indicates an increase of 7.6% and 4.9%, respectively, from the corresponding 2025 estimates.

Optimist Analyst Sentiment on CBOne of the 11 analysts covering the stock has raised estimates for 2026 and 2027 over the past 30 days. Thus, the Zacks Consensus Estimate for 2026 earnings has moved up 0.4% in the past 30 days, and for 2027, the same has moved north 0.6% in the same time frame.

Target Price Reflects Potential UpsideBased on short-term price targets offered by 24 analysts, the Zacks average price target is $349.42 per share. The average indicates a potential 10.5% upside from the last closing price.

Image Source: Zacks Investment Research

Impressive Earnings Surprise History of CBChubb Limited’s bottom line surpassed earnings estimates in each of the last four quarters, the average being 12.38%.

CB’s Favorable Return on CapitalReturn on equity in the trailing 12 months was 14.3%, better than the industry average of 7.4%. Return on equity, a profitability measure, reflects how effectively a company is utilizing its shareholders’ equity.

Also, return on invested capital (ROIC) has been increasing over the last few quarters amid capital investments made over the same time frame. This reflects CB’s efficiency in utilizing funds to generate income. ROIC in the trailing 12 months was 9.5%, better than the industry average of 5.9%.

Factors Benefiting CB StockChubb Limited remains focused on capitalizing on the potential of middle-market businesses (both domestic and international) as well as enhancing traditional core packages and specialty products for long-term growth. In its efforts to accelerate growth, Chubb Limited is also making strategic investments in various initiatives.

CB pursues strategic mergers and acquisitions to diversify its portfolio, add capabilities and synergies, and expand its geographic footprint. Recently, Chubb Limited agreed to acquire the insurance businesses of Liberty Mutual in Thailand and Vietnam. Acquisitions have also improved premium revenues. Premiums should also benefit from commercial P&C rate increases, new business and strong renewal retention. An impressive inorganic growth story helps to achieve a higher long-term return on equity.

Investment income should benefit from improved operating cash flow. Chubb Limited expects the Investment income run rate to continue to grow, as the company reinvests the cash flow at higher rates. Chubb Limited expects adjusted net investment income to be between $1.825 billion and $1.85 billion in the second quarter of 2026.

Chubb Limited has a strong capital position and sufficient cash-generation capabilities, which support wealth distribution to shareholders and growth initiatives.

Being a P&C insurer, CB is exposed to catastrophe events, which induce volatility in underwriting profitability and affect the combined ratio. Given the uncertainty surrounding the magnitude of cat loss, higher losses could drain earnings.

Also, Chubb Limited’s leverage and times interest earned compare unfavorably with the industry.

ConclusionChubb Limited’s market-leading position, compelling portfolio, strong renewal retention, positive rate increases, solid capital position and better return on capital pave the way for long-term growth.

The strong capital and liquidity position enable Chubb Limited to distribute wealth to its shareholders via share buybacks and dividend payouts. The company’s current dividend yield of 1.2% is better than the industry average of 0.2%. The recent 5.2% increase in dividends marks the 33rd straight year of dividend increase. Dividend has witnessed an eight-year (2018-2026) CAGR of 4.6%. This makes the stock an attractive pick for investors seeking a safe, steady cash flow.

However, given its premium valuation, we prefer to stay cautious on this Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.

It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.

That's where the Style Scores come in.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Chubb (CB - Free Report) Chubb Limited was formerly known as ACE Limited. ACE Limited after acquiring The Chubb Corp in Jan 2016 assumed the name of Chubb. Headquartered in Zurich, Switzerland, the company boasts being one of the world’s largest providers of property and casualty (P&C) insurance and reinsurance and largest publicly traded P&C insurer, based on market capitalization of $86 billion. Chubb has diversified through acquisitions into many specialty lines, including marine, medical risk, excess property, environmental and terrorism insurance and has local operations in 54 countries and territories. Chubb provides specialized insurance products such as personal accident, supplemental health and life insurance to individuals in select countries. Its reinsurance operations include both P&C and life companies.

CB is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 12.17; value investors should take notice.

11 analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.33 to $26.80 per share. CB boasts an average earnings surprise of +12.4%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, CB should be on investors' short list.

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Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.

Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.

Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Chubb (CB - Free Report) Chubb Limited was formerly known as ACE Limited. ACE Limited after acquiring The Chubb Corp in Jan 2016 assumed the name of Chubb. Headquartered in Zurich, Switzerland, the company boasts being one of the world’s largest providers of property and casualty (P&C) insurance and reinsurance and largest publicly traded P&C insurer, based on market capitalization of $86 billion. Chubb has diversified through acquisitions into many specialty lines, including marine, medical risk, excess property, environmental and terrorism insurance and has local operations in 54 countries and territories. Chubb provides specialized insurance products such as personal accident, supplemental health and life insurance to individuals in select countries. Its reinsurance operations include both P&C and life companies.

CB is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Momentum investors should take note of this Finance stock. CB has a Momentum Style Score of B, and shares are up 0.5% over the past four weeks.

For fiscal 2026, 11 analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.32 to $26.80 per share. CB boasts an average earnings surprise of +12.4%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, CB should be on investors' short list.

Chubb (CB - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.

Over the past month, shares of this insurer have returned +1%, compared to the Zacks S&P 500 composite's no change. During this period, the Zacks Insurance - Property and Casualty industry, which Chubb falls in, has gained 1.8%. The key question now is: What could be the stock's future direction?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current quarter, Chubb is expected to post earnings of $6.56 per share, indicating a change of +6.8% from the year-ago quarter. The Zacks Consensus Estimate has changed -0% over the last 30 days.

The consensus earnings estimate of $26.8 for the current fiscal year indicates a year-over-year change of +8.1%. This estimate has changed +0.1% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $28.86 indicates a change of +7.7% from what Chubb is expected to report a year ago. Over the past month, the estimate has changed +0.3%.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Chubb is rated Zacks Rank #3 (Hold).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

For Chubb, the consensus sales estimate for the current quarter of $15.89 billion indicates a year-over-year change of +7.3%. For the current and next fiscal years, $64.4 billion and $67.58 billion estimates indicate +7.4% and +4.9% changes, respectively.

Last Reported Results and Surprise HistoryChubb reported revenues of $15.3 billion in the last reported quarter, representing a year-over-year change of +11.9%. EPS of $6.82 for the same period compares with $3.68 a year ago.

Compared to the Zacks Consensus Estimate of $14.85 billion, the reported revenues represent a surprise of +2.97%. The EPS surprise was +5.25%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Chubb is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Chubb. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.