Financial Analysis

ACQUISITIONS During fiscal 2026, the company paid $189 million, net of cash acquired, primarily for the acquisitions of Fairfax Meadow and Ginsbergs Foods. On March 30, 2026, Sysco Corporation entered into an agreement and plan of merger (the Merger Agreement) pursuant to which Sysco Corporation will acquire JRD Unico Inc. and Warehouse Realty, LLC (collectively, Jetro Restaurant Depot or JRD) through a series of transactions (the merger and the other transactions contemplated by the Merger Agreement, the Transactions). JRD is a leading U.S. wholesale cash-and-carry foodservice provider serving smaller, independent restaurants and businesses with a broad assortment of fresh and low-priced products. Sysco has agreed to pay approximately $29.1 billion to JRD equity holders, comprised of $21.6 billion in cash, subject to customary adjustments, and 91.5 million shares of Sysco Holdings common stock. Following the closing of the Transactions, former holders of Sysco Corporation common stock and former equity holders of JRD will own shares of Sysco Holdings Corporation, which are expected to be listed for trading on the NYSE. JRDs equity holders are expected to hold approximately 16% and our stockholders are expected to hold approximately 84% of the outstanding Sysco Holdings common stock in the aggregate. Refer to Note 12, Debt and Other Financing Arrangements for discussion on how Sysco is financing the acquisition of JRD and Note 10, Derivative Financial Instruments for details …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

COMMITMENTS AND CONTINGENCIES Legal Proceedings Sysco is engaged in various legal proceedings that have arisen but have not been fully adjudicated. The likelihood of loss for these legal proceedings, based on definitions within contingency accounting literature, ranges from remote to reasonably possible to probable. When probable and reasonably estimable, the losses have been accrued. Although the final results of legal proceedings cannot be predicted with certainty, based on estimates of the range of potential losses associated with these matters, management does not believe the ultimate resolution of these proceedings, either individually or in the aggregate, will have a material adverse effect upon the consolidated financial position or results of operations of the company. Other Commitments We have contracts with various third-party service providers to receive information technology services and warehouse management services. The services have been committed for periods up to fiscal 2036 and may be extended. As of June 27, 2026, the total remaining cost of the services over that period is expected to be approximately $318 million. A portion of this committed amount may be reduced by Sysco utilizing less than estimated resources and can be increased by Sysco utilizing more than estimated resources. Certain agreements allow adjustments for inflation. Sysco may also cancel a portion or all of the services provided subject to termination fees that decrease over time. If Sysc …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

DEBT AND OTHER FINANCING ARRANGEMENTS Jun. 27, 2026 Jun. 28, 2025 (In millions) Euro Commercial paper, interest at 2.22%, matured in fiscal 2026 $ $ 205 Senior notes, interest at 3.75%, matured in fiscal 2026 (1)(2) 750 Senior notes, interest at 3.30%, maturing in fiscal 2027 (1)(2) 1,000 999 Debentures, interest at 7.16%, maturing in fiscal 2027 (2)(3) 43 43 Senior notes, interest at 3.25%, maturing in fiscal 2028 (1)(2) 749 748 Senior notes, interest at 5.75%, maturing in fiscal 2029 (1)(2) 498 497 Debentures, interest at 6.50%, maturing in fiscal 2029 (2) 155 155 Senior notes, interest at 2.40%, maturing in fiscal 2030 (1)(2) 498 498 Senior notes, interest at 5.95%, maturing in fiscal 2030 (1)(2) 996 995 Senior notes, interest at 5.10%, maturing in fiscal 2031 (1)(2) 696 695 Senior notes, interest at 2.45%, maturing in fiscal 2032 (1)(2) 447 447 Senior notes, interest at 4.40%, maturing in fiscal 2032 (1)(2) 586 Senior notes, interest at 6.00%, maturing in fiscal 2034 (1)(2) 498 507 Senior notes, interest at 5.40%, maturing in fiscal 2035 (1)(2) 552 562 Senior notes, interest at 4.95%, maturing in fiscal 2036 (1)(2) 631 Senior notes, interest at 5.375%, maturing in fiscal 2036 (1)(2) 383 383 Senior notes, interest at 6.625%, maturing in fiscal 2039 (1)(2) 200 200 Senior notes, interest at 6.60%, maturing in fiscal 2040 (1)(2) 351 350 Senior notes, interest at 4.50%, maturing in fiscal 2046 (1)(2) 495 495 Senior notes, interest at 4.85%, maturing in fiscal 2046 (1)(2) 497 4 …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following tables present our sales disaggregated by reportable segment and sales mix for our principal product categories for the periods presented: Year Ended Jun. 27, 2026 US Foodservice Operations International Foodservice Operations SYGMA Other Total (In millions) Principal Product Categories Fresh and frozen meats $ 11,918 $ 2,606 $ 2,579 $ $ 17,103 Canned and dry products 10,965 3,055 1,010 15,030 Frozen fruits, vegetables, bakery and other 8,328 3,023 1,333 12,684 Dairy products 5,950 1,799 540 8,289 Poultry 5,543 1,234 1,130 7,907 Fresh produce 5,517 1,146 297 6,960 Paper and disposables 4,226 555 800 46 5,627 Beverage products 1,653 844 628 83 3,208 Seafood 2,378 496 188 3,062 Equipment and smallwares 1,132 241 28 515 1,916 Other (1) 1,193 1,043 90 441 2,767 Total Sales $ 58,803 $ 16,042 $ 8,623 $ 1,085 $ 84,553 (1) Other sales relate to certain non-food products, including textiles and amenities for our hotel supply business, other janitorial products, and medical supplies. Year Ended Jun. 28, 2025 US Foodservice Operations International Foodservice Operations SYGMA Other Total (In millions) Principal Product Categories Fresh and frozen meats $ 10,674 $ 2,221 $ 2,291 $ $ 15,186 Canned and dry products 10,586 3,043 1,016 14,645 Frozen fruits, vegetables, bakery and other 8,130 2,811 1,346 12,287 Dairy products 6,421 1,695 570 8,686 Poultry 5,842 1,135 1,159 8,136 Fresh produce 5,229 1,103 300 6,632 Paper and disposables 4,109 533 802 51 5,495 Beverage products 1, …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

SHARE-BASED COMPENSATION We provide compensation benefits to employees under several share-based payment arrangements including various long-term employee stock incentive plans and the 2025 Employee Stock Purchase Plan (ESPP). Stock Incentive Plans In November 2018, Syscos Omnibus Incentive Plan (2018 Plan) was adopted and reserved up to 51,500,000 shares of Sysco common stock for share-based awards to employees, non-employee directors and key advisors. Of the 51,500,000 authorized shares, the full 51,500,000 shares may be issued as options or stock appreciation rights and up to 17,500,000 shares may be issued as restricted stock, restricted stock units or other types of stock-based awards. To date, we have issued options, restricted stock units and performance share units under the 2018 Plan. Vesting requirements for awards under the 2018 Plan vary by individual grant and may include either time-based vesting or time-based vesting subject to acceleration based on performance criteria for fiscal periods of at least one year. The contractual life of all options granted under the 2018 Plan are and will be no greater than ten years. As of June 27, 2026, there were 35,362,902 remaining shares authorized and available for grant under the 2018 Plan, of which the full 35,362,902 shares may be issued as options or stock appreciation rights, or as a combination of up to 8,857,829 shares that may be issued as restricted stock, restricted stock units or other types of stock-based awards …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

FAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e., an exit price). The accounting guidance includes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The three levels of the fair value hierarchy are as follows: Level 1 Unadjusted quoted prices for identical assets or liabilities in active markets; Level 2 Inputs other than quoted prices in active markets for identical assets and liabilities that are observable either directly or indirectly for substantially the full term of the asset or liability; and Level 3 Unobservable inputs for the asset or liability, which include managements own assumption about the assumptions market participants would use in pricing the asset or liability, including assumptions about risk. Syscos policy is to invest in only high-quality investments. Cash equivalents primarily include cash deposits, time deposits, certificates of deposit, commercial paper, high-quality money market funds and all highly liquid instruments with original maturities of three months or less. The following is a description of the valuation methodologies used for assets and liabilities measured at fair value: Cash deposits included in cash equivalents are valued at amortized cost which approximates fair value. These are included within cash equivalents as a Lev …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

GOODWILL AND OTHER INTANGIBLES The changes in the carrying amount of goodwill by reportable segment for the years presented are as follows: U.S. Foodservice Operations International Foodservice Operations SYGMA Other Total (In millions) Carrying amount as of June 29, 2024 $ 2,756 $ 2,176 $ 33 $ 188 $ 5,153 Goodwill acquired during year (1) 10 9 Impairment (92) (92) Currency translation/other 161 161 Carrying amount as of June 28, 2025 $ 2,755 $ 2,347 $ 33 $ 96 $ 5,231 Goodwill acquired during year 29 39 68 Currency translation/other (70) (70) Disposals (4) (4) Carrying amount as of June 27, 2026 $ 2,780 $ 2,316 $ 33 $ 96 $ 5,225 Amortizable intangible assets acquired during fiscal 2026 were $36 million, with a weighted-average amortization period of 11 years. Amortizable intangible assets acquired during fiscal 2026 by category were customer relationships, non-compete, and trademarks of $26 million, $1.0 million, and $9 million, respectively, with a weighted-average amortization period of 7 years, 5 years, and 25 years, respectively. Fully amortized intangible assets have been removed in the period fully amortized in the table below which presents the companys amortizable intangible assets in total by category as follows: Jun. 27, 2026 Jun. 28, 2025 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net (In millions) Customer relationships $ 1,542 $ (978) $ 564 $ 1,595 $ (951) $ 644 Non-compete agreements 13 (11) 2 27 (22) 5 Trad …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

INCOME TAXES Income Tax Provisions For financial reporting purposes, earnings before income taxes consists of the following: 2026 2025 2024 (In millions) U.S. $ 2,056 $ 2,066 $ 2,260 Foreign 220 349 305 Total $ 2,276 $ 2,415 $ 2,565 The income tax provision for each fiscal year consists of the following: 2026 2025 2024 (In millions) U.S. federal income taxes $ 356 $ 432 $ 447 State and local income taxes 99 104 125 Foreign income taxes 64 51 38 Total $ 519 $ 587 $ 610 The current and deferred components of the income tax provisions for each fiscal year are as follows: 2026 2025 2024 (In millions) Current $ 510 $ 602 $ 584 Deferred 9 (15) 26 Total $ 519 $ 587 $ 610 The deferred tax provisions result from the effects of net changes during the year in deferred tax assets and liabilities arising from temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Effective Tax Rates Reconciliations of the statutory federal income tax rate to the effective income tax rates for each fiscal year are as follows (dollars in millions): 2026 Amount Percent US federal statutory tax rate $ 478 21.0 % State and local income tax, net of federal income tax effect (1) 78 3.4 Foreign tax effects Luxembourg Changes in valuation allowances (26) (1.1) Other 25 1.1 Other foreign jurisdictions 18 0.8 Tax credits (16) (0.7) Nontaxable or nondeductible items Other (17) (0.8) Changes in unrecognized tax benefit …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

LEASES Sysco leases certain of its distribution and warehouse facilities, office facilities, fleet vehicles, and office and warehouse equipment. We determine if an arrangement is a lease at inception and recognize a finance or operating lease liability and right-of-use (ROU) asset in the consolidated balance sheets if a lease exists. Lease liabilities are recognized based on the present value of future minimum lease payments over the lease term at the commencement date. If the borrowing rate implicit in the lease is not readily determinable, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. The lease term is defined as the noncancelable period of the lease plus any options to extend or terminate the lease when it is reasonably certain that the company will exercise one of these options. Leases with an initial term of twelve months or less are not recorded in Syscos consolidated balance sheets, and we recognize expense for these leases on a straight-line basis over the lease term. Variable lease payments that do not depend on an index or a rate, such as insurance and property taxes, are excluded from the measurement of the lease liability and are recognized as variable lease cost when the obligation for that payment is incurred. For leases in which the lease and non-lease components have been combined, the variable lease expense includes expenses such as common area maintenance …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Recent Accounting Guidance Adopted Income Taxes In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-09, Income Taxes (Topic 740), Improvements to Income Tax Disclosures to enhance income tax information primarily through changes in the rate reconciliation and income taxes paid information. ASU 2023-09 is effective for annual periods beginning after December 15, 2024, (our fiscal 2026), and may be applied prospectively or retrospectively. Early adoption is permitted. We have adopted ASU 2023-09 within our fiscal 2026 10-K filing on a prospective basis. The adoption only impacted our disclosures, with no impacts to our financial position or results of operations. See Note 19 included in this Form 10-K for the additional income tax disclosures required as a result of the adoption. Recent Accounting Guidance Not Yet Adopted Disaggregation of Income Statement Expenses In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. The standard update improves the disclosures about a public business entitys expenses by requiring more detailed information about the types of expenses included within commonly presented income statement captions. The amendments in ASU 2024-03 are effective for annual reporting periods beginning after December 15, 2026, (our fiscal 2028), and interim reporting pe …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

COMPANY-SPONSORED EMPLOYEE BENEFIT PLANS Sysco has company-sponsored defined benefit and defined contribution retirement plans for its employees. Also, the company provides certain health care benefits to eligible retirees and their dependents. Defined Contribution Plans Sysco operates a defined contribution 401(k) Plan as a Safe Harbor Plan, which is a plan that treats all employees benefits equally within the plan, under Sections 401(k) and 401(m) of the Internal Revenue Code with respect to non-union employees and those union employees whose unions adopted the Safe Harbor Plan provisions. We make a non-elective contribution each pay period equal to 3% of a participants compensation. Additionally, we make matching contributions of 50% of a participants pretax contribution on the first 6% of the participants compensation contributed by the participant. Certain employees are also eligible for a transition contribution, and we may also make discretionary contributions. For union employees who are members of unions that did not adopt the Safe Harbor Plan provisions, the plan provides that under certain circumstances we may make matching contributions of up to 50% of the first 6% of a participants compensation. Sysco also has a non-qualified, unfunded Management Savings Plan (MSP) available to key management personnel who are participants in the Management Incentive Plan (MIP). Participants may defer up to 50% of their annual salary and up to 90% of their annual bonus. We make a …

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REVENUE Disaggregation of Sales The following tables present our sales disaggregated by reportable segment and sales mix for our principal product categories for the periods presented: Year Ended Jun. 27, 2026 US Foodservice Operations International Foodservice Operations SYGMA Other Total (In millions) Principal Product Categories Fresh and frozen meats $ 11,918 $ 2,606 $ 2,579 $ $ 17,103 Canned and dry products 10,965 3,055 1,010 15,030 Frozen fruits, vegetables, bakery and other 8,328 3,023 1,333 12,684 Dairy products 5,950 1,799 540 8,289 Poultry 5,543 1,234 1,130 7,907 Fresh produce 5,517 1,146 297 6,960 Paper and disposables 4,226 555 800 46 5,627 Beverage products 1,653 844 628 83 3,208 Seafood 2,378 496 188 3,062 Equipment and smallwares 1,132 241 28 515 1,916 Other (1) 1,193 1,043 90 441 2,767 Total Sales $ 58,803 $ 16,042 $ 8,623 $ 1,085 $ 84,553 (1) Other sales relate to certain non-food products, including textiles and amenities for our hotel supply business, other janitorial products, and medical supplies. Year Ended Jun. 28, 2025 US Foodservice Operations International Foodservice Operations SYGMA Other Total (In millions) Principal Product Categories Fresh and frozen meats $ 10,674 $ 2,221 $ 2,291 $ $ 15,186 Canned and dry products 10,586 3,043 1,016 14,645 Frozen fruits, vegetables, bakery and other 8,130 2,811 1,346 12,287 Dairy products 6,421 1,695 570 8,686 Poultry 5,842 1,135 1,159 8,136 Fresh produce 5,229 1,103 300 6,632 Paper and disposables 4,109 533 8 …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

BUSINESS SEGMENT INFORMATION We have combined certain of our operations in three reportable segments. Other financial information is attributable to the companys other operating segments that do not meet the quantitative disclosure thresholds. U.S. Foodservice Operations primarily includes (a) our U.S. Broadline operations, which distribute a full line of food products, including custom-cut meat, seafood, produce, specialty Italian, specialty imports and a wide variety of non-food products and (b) our U.S. Specialty operations, which include our FreshPoint fresh produce distribution business, our Buckhead | Newport Meat & Seafood specialty protein operations, our growing Italian Specialty platform anchored by Greco & Sons, Inc., our Edward Don restaurant equipment and supplies distribution business, our Asian specialty distribution company and a number of other small specialty businesses that are not material to the operations of Sysco; International Foodservice Operations includes operations outside of the United States (U.S.), which distribute a full line of food products and a wide variety of non-food products. The Americas primarily consists of operations in Canada, Bahamas, Costa Rica and Panama, as well as our export operations that distribute to international customers. Our European operations primarily consist of operations in the United Kingdom (U.K.), France, Ireland and Sweden; SYGMA our U.S. customized distribution operations serving quick-service chain re …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

ACQUISITIONS During the first 39 weeks of fiscal 2026 , the company paid $189 million primarily for the acquisitions of Fairfax Meadow and Ginsbergs Foods. In certain circumstances, purchase price allocations may be based upon preliminary estimates and assumptions. Accordingly, allocations are subject to revision until Sysco receives final information and completes its analysis during the measurement period. This includes finalizing the valuation of acquired tangible and intangible assets and related tax attributes. Syscos operations within the United Kingdom will undergo a rebranding initiative, rebranding the Brakes brand and other smaller brands, as Sysco GB. This rebranding initiative will take approximately two years and will result in Sysco amortizing previously indefinite-lived intangible assets on a straight-line basis over this two - year period. Amortization expense related to these intangible assets is expected to be $29 million in fiscal 2026 , $49 million in fiscal 2027 and $25 million in fiscal 2028. …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

DEBT On September 5, 2025, Sysco entered into a new long-term revolving credit facility, which replaces the $3.0 billion senior revolving credit facility that was originally entered into on April 29, 2022 . The aggregate commitments of the lenders under the new long-term credit agreement are $3.0 billion , with an option to increase such commitments to $4.0 billion . The new facility includes a covenant requiring Sysco to maintain a ratio of consolidated EBITDA to consolidated interest expense of 3.0 to 1.0 over four consecutive fiscal quarters , which is consistent with our previous revolving credit facility. The new revolving credit facility expires on September 5, 2030. As of March 28, 2026 , there were no borrowings outstanding under this facility. In April 2026, Sysco replaced the 2025 credit facility described above. See more information in Note 15, Subsequent Events. We have a commercial paper program allowing the company to issue short-term unsecured notes in an aggregate amount not to exceed $3.0 billion . Any outstanding amounts are classified within long-term debt, as the program is supported by the long-term revolving credit facility noted above. As of March 28, 2026 , there were no U.S. commercial paper issuances outstanding under this program. We have commercial paper issuances outstanding under this program in Europe. In December 2025 , Sysco entered into an agreement to increase the maximum allowable principal amount of the commercial paper issuances in Europe …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following tables present our sales disaggregated by reportable segment and sales mix for the companys principal product categories for the periods presented: 13-Week Period Ended Mar. 28, 2026 US Foodservice Operations International Foodservice Operations SYGMA Other Total (In millions) Principal Product Categories Fresh and frozen meats $ 2,865 $ 635 $ 653 $ $ 4,153 Canned and dry products 2,688 743 250 3,681 Frozen fruits, vegetables, bakery and other 2,054 738 328 3,120 Dairy products 1,387 438 129 1,954 Poultry 1,305 295 277 1,877 Fresh produce 1,338 276 71 1,685 Paper and disposables 1,025 133 193 11 1,362 Beverage products 403 202 155 20 780 Seafood 604 113 51 768 Equipment and smallwares 270 57 7 128 462 Other (1) 295 255 23 104 677 Total Sales $ 14,234 $ 3,885 $ 2,137 $ 263 $ 20,519 (1) Other sales relate to certain non-food products, including textiles and amenities for our hotel supply business, other janitorial products, and medical supplies. 13-Week Period Ended Mar. 29, 2025 US Foodservice Operations International Foodservice Operations SYGMA Other Total (In millions) Principal Product Categories Fresh and frozen meats $ 2,590 $ 531 $ 579 $ $ 3,700 Canned and dry products 2,574 669 253 3,496 Frozen fruits, vegetables, bakery and other 1,989 663 329 2,981 Dairy products 1,597 406 143 2,146 Poultry 1,366 261 284 1,911 Fresh produce 1,239 257 74 1,570 Paper and disposables 993 123 195 12 1,323 Beverage products 367 176 150 19 712 Seafood 536 96 48 680 Equipment …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

SHARE-BASED COMPENSATION Sysco provides compensation benefits to employees under several share-based payment arrangements, including various long-term employee stock incentive plans and the 2015 Employee Stock Purchase Plan (ESPP). Stock Incentive Plans In the first 39 weeks of fiscal 2026 , options to purchase 726,016 shares were granted to employees. The fair value of each option award is estimated as of the date of grant using a Black-Scholes option pricing model. The weighted average grant- date fair value per option granted during the first 39 weeks of fiscal 2026 was $19.52 . In the first 39 weeks of fiscal 2026 , employees were granted 460,258 performance share units (PSUs). Based on the jurisdiction in which the employee resides, some of these PSUs were granted with forfeitable dividend equivalents. The fair value of each PSU award granted with a dividend equivalent is based on the companys stock price as of the date of grant. For PSUs granted without dividend equivalents, the fair value is reduced by the present value of expected dividends during the vesting period. The weighted average grant-date fair value per PSU granted during the first 39 weeks of fiscal 2026 was $86.22 . The PSUs will convert into shares of Syscos common stock at the end of the three-year performance period based on actual performance targets achieved, as well as the market-based return of Syscos common stock relative to that of each company within the S&P 500 index. In the first 39 weeks o …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

FAIR VALUE MEASUREMENTS Syscos policy is to invest only in high-quality investments. The fair values of our cash deposits and money market funds included in cash equivalents are valued using inputs that are considered a Level 1 measurement. Other cash equivalents, such as time deposits and highly liquid instruments with original maturities of three months or less, are valued using inputs that are considered a Level 2 measurement. The fair value of our marketable securities is measured using inputs that are considered a Level 2 measurement, as they rely on quoted prices in markets that are not actively traded or observable inputs over the full term of the asset. The location and the fair value of the companys marketable securities in the consolidated balance sheet are disclosed in Note 6 , Marketable Securities. The fair value of our derivative instruments is measured using inputs that are considered a Level 2 measurement, as they are not actively traded and are valued using pricing models that use observable market quotations. The location and the fair values of derivative assets and liabilities designated as hedges in the consolidated balance sheet are disclosed in Note 7 , Derivative Financial Instruments. The following tables present our assets measured at fair value on a recurring basis as of March 28, 2026 and June 28, 2025 : Assets Measured at Fair Value as of Mar. 28, 2026 Level 1 Level 2 Level 3 Total (In millions) Assets: Cash and cash equivalents $ 1,345 $ $ $ 1,345 …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

INCOME TAXES Effective Tax Rate The effective tax rates for the third quarter and first 39 weeks of fiscal 2026 were 23.6% and 22.5% , respectively. These rates were higher than the companys 21.0% statutory tax rate primarily due to the impact of state income taxes, partially offset by a foreign income tax benefit and equity-based compensation excess tax benefits. The effective tax rates for the third quarter and first 39 weeks of fiscal 2025 were 23.3% and 23.6% , respectively. These rates were higher than the companys 21.0% statutory tax rate primarily as a result of state income taxes, partially offset by a foreign income tax benefit and equity-based compensation excess tax benefits. Uncertain Tax Positions As of March 28, 2026 , the gross amount of unrecognized tax benefit and related accrued interest was $68 million and $20 million , respectively. It is reasonably possible the amount of the unrecognized tax benefit with respect to certain unrecognized tax positions of the company will increase or decrease in the next 12 months. At this time, an estimate of the range of the reasonably possible change cannot be made. During the third quarter of fiscal 2023, Sysco received a Statutory Notice of Deficiency from the Internal Revenue Service, mainly related to foreign tax credits generated in fiscal 2018 from repatriated earnings primarily from our Canadian operations. In the fourth quarter of fiscal 2023, the company filed suit in the U.S. Tax Court challenging the validity o …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Recent Accounting Guidance Adopted Segment Reporting In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures to improve reportable segment disclosure requirements through enhanced disclosures about significant segment expenses. ASU 2023-07 expands public entities segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items and interim disclosures of a reportable segments profit or loss and assets. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, (our fiscal 2025), and interim periods for our fiscal years beginning after December 15, 2024, (our first quarter of fiscal 2026), and should be applied on a retrospective basis to all periods presented. Sysco adopted ASU 2023-07 related to annual disclosure requirements effective with our fiscal 2025 Form 10-K. The newly required annual disclosures were included in Note 21 - Business Segment Information of the fiscal 2025 Form 10-K. We adopted ASU 2023-07 related to interim disclosure requirements effective with our first quarter fiscal 2026 10-Q filing. See Note 14 included in this Form 10-Q for the additional segment disclosures required as a result of t …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

REVENUE We recognize revenues when our performance obligations are satisfied in an amount that reflects the consideration Sysco expects to be entitled to receive in exchange for those goods and services. Customer receivables, which are included in accounts receivable, less allowances in the consolidated balance sheet, were $5.4 billion and $5.1 billion as of March 28, 2026 and June 28, 2025 , respectively. The following tables present our sales disaggregated by reportable segment and sales mix for the companys principal product categories for the periods presented: 13-Week Period Ended Mar. 28, 2026 US Foodservice Operations International Foodservice Operations SYGMA Other Total (In millions) Principal Product Categories Fresh and frozen meats $ 2,865 $ 635 $ 653 $ $ 4,153 Canned and dry products 2,688 743 250 3,681 Frozen fruits, vegetables, bakery and other 2,054 738 328 3,120 Dairy products 1,387 438 129 1,954 Poultry 1,305 295 277 1,877 Fresh produce 1,338 276 71 1,685 Paper and disposables 1,025 133 193 11 1,362 Beverage products 403 202 155 20 780 Seafood 604 113 51 768 Equipment and smallwares 270 57 7 128 462 Other (1) 295 255 23 104 677 Total Sales $ 14,234 $ 3,885 $ 2,137 $ 263 $ 20,519 (1) Other sales relate to certain non-food products, including textiles and amenities for our hotel supply business, other janitorial products, and medical supplies. 13-Week Period Ended Mar. 29, 2025 US Foodservice Operations International Foodservice Operations SYGMA Other Total (I …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

BUSINESS SEGMENT INFORMATION Sysco distributes food and related products to restaurants, healthcare and educational facilities, lodging establishments and other foodservice customers. Our primary operations are located in North America and Europe. Under the accounting provisions related to disclosures about segments of an enterprise, we have aggregated certain operating segments into three reportable segments. Other financial information is attributable to our other operating segments that do not meet the quantitative disclosure thresholds. U.S. Foodservice Operations primarily includes (a) our U.S. Broadline operations, which distribute a full line of food products, including custom-cut meat, seafood, produce, specialty Italian, specialty imports and a wide variety of non-food products and (b) our U.S. Specialty operations, which include our FreshPoint fresh produce distribution business, our Buckhead | Newport Meat & Seafood specialty protein operations, our growing Italian Specialty platform anchored by Greco & Sons, Inc., our Edward Don restaurant equipment and supplies distribution business, our Asian specialty distribution company and a number of other small specialty businesses that are not material to the operations of Sysco; International Foodservice Operations includes operations outside of the United States (U.S.), which distribute a full line of food products and a wide variety of non-food products. The Americas primarily consists of operations in Canada, …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

SUBSEQUENT EVENTS On March 30, 2026 , Sysco Corporation entered into an agreement (the Merger Agreement) to acquire Jetro Restaurant Depot (JRD), a leading U.S. wholesale cash-and-carry foodservice provider serving smaller, independent restaurants and businesses. JRD operates 167 large-format warehouse stores across 35 states that serve more than 725,000 independent restaurants and foodservice operators with a broad assortment of fresh and low-priced products. Sysco has agreed to pay approximately $29.1 billion to JRD shareholders, comprising of approximately $21.6 billion in cash, subject to customary adjustments, and 91.5 million shares of Sysco common stock. Following the transaction, JRDs equity holders are expected to hold approximately 16% of the outstanding common stock of Sysco in the aggregate. The cash portion of the purchase price is expected to be financed with a combination of new senior unsecured notes, hybrid debt, cash on hand and equity or equity-linked securities. Sysco has executed a commitment letter for a $22 billion senior unsecured 364 -day bridge loan facility that could be used to fund the cash portion of the purchase price and pay related fees and expenses. Subsequent to the execution of the commitment letter for the bridge loan facility, Sysco entered into a $3 billion senior unsecured delayed draw term loan facility, comprising a $1.25 billion 364 -day tranche and a $1.75 billion 2 - year tranche, reducing the bridge loan facility commitments from …

SubsequentEventsTextBlock · excerpt; the full note is in the filing