Stock Price Decline of Sysco Corporation Today
In the closing quarter of 2025, Sysco Corporation (SYY) reported a 13% reduction in earnings due to a goodwill impairment charge, as compared to the same period the previous year. This decline was also reflected in the company's earnings per share (EPS), which dropped 11% to $1.10 per share.
Despite these setbacks, Sysco's CEO, Kevin Hourican, remains optimistic about the future. He predicts sales growth of at least 3% and up to 5% for fiscal 2026, potentially reaching $84 billion or $85 billion. Hourican also anticipates an earnings improvement of 1% to 3% for the same period, with EPS ranging between $4.50 and $4.60.
The Q4 2025 sales figure stood at $21.1 billion, marking a 3% increase year over year. However, Sysco's stock experienced a 2.5% decrease, and the company's stock valuation may see an increase due to the predicted earnings growth, moving from just under 17 times earnings to just over.
Sysco's stock has a 2.7% dividend yield, making it an attractive option for income-focused investors. The current analyst consensus on Sysco (SYY) stock after Q4 earnings is generally positive, with a Moderate Buy to Buy rating consensus and most analysts raising or maintaining price targets.
The average price target is roughly $85.69 to $85.79, with targets ranging as high as $90 and as low as $72. This implies a moderate upside of approximately 4-7% from recent prices around $80. Notable upgrades and target increases include Guggenheim raising its target from $85 to $87 with a Buy rating, Wells Fargo having an overweight rating at $88 target, and Truist increasing its target to $90 also with a Buy rating.
While Wall Street Zen lowered its rating from Buy to Hold, most large brokers remain positive with price targets trending upward, reflecting confidence post Q4 earnings. However, it's important to note that Sysco's growth in earnings for fiscal 2026 is not expected to reach the mid-teens, at least not this year. The CEO states that he would want to see the company growing earnings in at least the mid-teens before considering a buy.
In conclusion, analyst sentiment on Sysco stock after Q4 earnings is predominantly optimistic, favoring a Buy stance with price targets mostly above current trading levels, indicating expectations of moderate stock appreciation. Yet, the company's Q4 earnings decline and the CEO's expectations for mid-teens earnings growth highlight the need for continued focus on improving profit margins and earnings growth in the coming fiscal year.
[1]: Source for analyst ratings and price targets [2]: Source for Guggenheim's upgrade and target increase [3]: Source for Wells Fargo's overweight rating and target [4]: Source for Truist's upgrade and target increase [5]: Source for breakdown of analyst ratings (Strong Buy, Buy, Hold)
- In light of the prediction of sales growth and earnings improvement for fiscal 2026, members of the investment community may choose to allocate their money towards Sysco Corporation (SYY), as they seek opportunities for investing in the business sector.
- With the optimistic analyst consensus on Sysco stock, finance professionals may use the company's stock as a component in their portfolios, considering the potential for moderate stock appreciation over the coming months.
- Based on the positive analyst sentiment and increasing price targets post Q4 earnings, financiers might analyze Sysco's upcoming financials and business strategies to identify potential investment opportunities focused on enhancing its profit margins and achieving mid-teens earnings growth.
