Sysco Corporation reaffirmed its fiscal 2027 financial guidance while simultaneously increasing its growth targets for the subsequent two fiscal years. The foodservice distribution company unveiled these updated projections in advance of a presentation at the Barclays 19th Annual Global Consumer Staples Conference in Boston.
For fiscal 2027, the company maintained its expectation for net sales growth of approximately 6% to 7%, which would bring revenue to around $90 billion. Adjusted earnings per share were forecast to reach between $5.02 and $5.12, reflecting growth of approximately 9% to 11% on a 53-week basis.
Sysco elevated its mid-term annualised net sales growth target for fiscal 2028 and 2029 to a range of 4% to 7%, representing an upward revision from the previous target range of 4% to 6%. Similarly, the company raised its annualised adjusted EPS growth target to between 9% and 11%, up from the prior forecast of 6% to 8%.
The company unveiled a multi-year programme leveraging artificial intelligence and automation designed to generate at least $500 million in efficiency savings by fiscal 2029. Sysco indicated that $100 million of the expected savings during fiscal 2027 is already incorporated into its existing guidance. The initiative encompasses multiple operational areas, including modernisation of routing software, supply-chain productivity improvements, automation within merchandising and procurement functions, management of indirect spending, and simplification of back-office processes.
The updated fiscal 2027 and mid-term forecasts pertain to Sysco’s core standalone operations and exclude the proposed Jetro Restaurant Depot transaction, which the company expects to close by the third quarter of fiscal 2027. The revised mid-term targets incorporate anticipated benefits from the efficiency programme but continue to exclude the Jetro transaction.
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