Sysco Reports Q2 Revenue Growth Amid Margin Pressures

Sysco Corp. reported a solid fiscal Q2 2025 performance, with adjusted earnings per share of $0.93 and revenue of $20.15 billion, slightly surpassing analysts' expectations. Despite the overall growth, the company faced margin pressures in its U.S. operations due to high dairy and poultry costs, impacting net income which fell to $406 million. International operations showed strong growth, leading to a 26.5% increase in adjusted operating income. Sysco maintained its full-year forecast, anticipating sales growth of 4-5% and adjusted earnings per share growth of 6-7%. The company's shares declined by 4% after the earnings release, which reflected mixed investor sentiment. Sysco aims to leverage its extensive distribution network and strategic sourcing to manage costs more effectively in the future.