Digital transformation and supply chain efficiency power strongest quarterly case volume growth in three years

Sysco Corporation has reported strong financial results for the third quarter of fiscal year 2026, recording total sales of USD 20.5 billion for the 13 weeks ended March 28, 2026, reflecting a 4.7 per cent increase year-on-year. Supporting this global performance is Sysco LABS Sri Lanka, Sysco’s benchmarked Global Innovation Centre, where teams are building and maintaining the technology infrastructure that enables Sysco to serve its customers more efficiently and intelligently at scale.

For Sri Lanka’s growing technology sector, Sysco LABS represents a model of what globally integrated, locally rooted innovation looks like in practice, underpinning Sysco’s success through continuous investment in and improvement of digital ordering platforms, warehouse management solutions, intelligent pricing systems, and other innovative technology capabilities that enable scale, efficiency, and market leadership. Serving approximately 730,000 customer locations globally through 337 distribution centres across 10 countries, supported by a workforce of over 75,000 colleagues, Sysco continues to demonstrate how technology-driven operations contribute to sustained growth and industry leadership.

“These results are a proud moment for our teams in Sri Lanka. Their contributions continue to play a pivotal role that directly support Sysco’s Recipe for Growth strategy. Through technology initiatives that help expand margins to supporting increased case volumes at scale, what stands out most is the commitment of all our LABSters, who continue to deliver meaningful innovation that creates real value across the business,” said Thushera Kawdawatta - Managing Director, Sysco LABS.

On the revenue front, Sysco’s total sales grew 4.7 per cent to USD 20.5 billion in the third quarter, with U.S. Foodservice Operations contributing USD 14.2 billion, up 3.1% and International Foodservice Operations delivering USD 3.9 billion, up 12.4% year-on-year. Gross profit grew 6.5 % to USD 3.8 billion, with gross margin expanding 31 basis points to 18.6%, reflecting positive volume trends, strategic sourcing efficiencies and effective management of product cost inflation. Adjusted net earnings for the quarter stood at USD 452 million, with adjusted diluted EPS at USD 0.94. On a year-to-date basis, operating cash flow increased 11% to USD 1.5 billion, while free cash flow rose 19% to USD 1.1 billion, demonstrating the underlying strength of Sysco's cash generation capabilities.

From an operational standpoint, U.S. local case volume grew 3.3% during the quarter, the highest quarterly rate in over three years, exceeding the company's own prior commitments. The U.S. Foodservice segment returned to operating profit growth, while International Foodservice Operations delivered double-digit adjusted operating income growth. The company also returned USD 978 million to shareholders on a year-to-date basis through dividends and share repurchases, and has reaffirmed full-year adjusted EPS guidance at the high end of the USD 4.50 to USD 4.60 range.

The results come at a time when the global foodservice industry continues to navigate a complex operating environment. Product cost inflation, primarily across dairy, meat and seafood categories, evolving consumer eating habits, and the broader implications of shifting global trade policies are all shaping how foodservice companies operate and compete. In this environment, the ability to make data-informed decisions across pricing, procurement, distribution and customer engagement has become a defining competitive advantage.

Looking ahead

Sysco also has reaffirmed its full-year adjusted EPS guidance at the high end of the USD 4.50 to USD 4.60 range. Adding to the momentum, the company also announced the pending acquisition of Jetro Restaurant Depot, expected to close by the third quarter of fiscal 2027, subject to regulatory approvals, further strengthening its global growth outlook.

Image Caption -  Thushera Kawdawatta - Managing Director, Sysco LABS