After a brief post-earnings dip in Sysco Corporation (NYSE:SYY) shares, Jim Cramer argued during the August 11 episode of Mad Money that the market completely missed the real story: a business using smart technology to expand margins and cement its dominant position. He noted: Tonight, we have Sysco, not the networking company, which is all in the data center anyway, but the food service company, which says that artificial intelligence made them more nimble, more responsive to customers, more profitable. You may or may not believe it.
Maybe you think it is, I don't know, AI washing, but Sysco clearly believes it. Maybe that's what matters… Last week, we got a solid quarter from Sysco... They posted a slight top and bottom line beat.
Management gave a very bullish forecast for 2027 fiscal year, the 12-months ending next July. Strangely, I thought, the stock actually sold off 2.6% last Tuesday in response. But since then, it has made it all that… back.
It didn't make any sense to me. The way I see it, though, you're now getting a pretty darn good quarter for free. Plus, don't forget, Sysco's in the process of acquiring Jetro Restaurant Depot.
It's a cash and carry wholesaler for restaurants and catering companies... When that deal closes, they'll have a hammer lock on the entire industry. The Q4 of fiscal year 2026 performance metrics behind Sysco Corporation (NYSE:SYY) support the bullish perspective.
The distributor delivered a clean top and bottom-line beat, as it posted adjusted non-GAAP EPS of $1.53, representing a 3.4% year-over-year increase, beating consensus by $0.02 despite an $11 million higher incentive compensation impact. Net earnings rose 3.8% to $551 million, while adjusted net earnings grew 2.5% to $734 million. Total revenue reached $22.1 billion, up 4.7% year-over-year and outperformed expectations by $210 million.
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