Year-to-date free cash flow reached $1.1 billion, a 19% increase from the same period a year ago. Cash flow from operations rose 11% to $1.5 billion over the same 39-week span.
The U.S. Foodservice Operations segment posted a 3.1% sales increase to $14.2 billion. Total case volume in that segment grew 2.3%, while adjusted operating income climbed 5.1% to $830 million. International Foodservice Operations sales rose 12.4% to $3.9 billion, or 5.2% on a constant currency basis.
GAAP operating income fell 9.1% to $619 million, and adjusted operating income edged down 0.6% to $768 million. Operating expenses increased 10.1%, driven by higher incentive compensation, sales headcount, and capacity investments, the company said.
"Our U.S. local volumes grew 3.3%, the highest quarterly rate in over three years," CEO Kevin Hourican said in a statement. "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."
Sysco raised its full-year outlook, saying it now expects adjusted EPS at the high end of its previously issued $4.50 to $4.60 guidance range. That range incorporates an approximately $100 million, or $0.16 per diluted share, headwind from lapping lower incentive compensation in fiscal 2025, the company said.
As of the end of the quarter, Sysco held a cash balance of $1.9 billion and total liquidity of $4.4 billion. The company returned $978 million to shareholders in the first 39 weeks of fiscal 2026 through $200 million in share repurchases and $778 million in dividends.
On March 30, 2026, after the quarter ended, Sysco announced an agreement to acquire Jetro Restaurant Depot, a wholesale cash-and-carry foodservice provider that operates 167 warehouse stores across 35 U.S. states. The transaction remains subject to regulatory review and is expected to close by Sysco's third quarter of fiscal 2027.
