Sysco (SYY) Gross Margin — Quarter Ended Sep 27, 2025

Revenue was unchanged from the previous quarter, while gross profit decreased, causing gross margin to weaken. Compared with the same quarter one year earlier, both revenue and gross profit were higher, and gross margin improved slightly.

Gross margin takeaway

Quarter ended Sep 27, 2025 · FY2026 Q1

The sequential decline in gross profit, with revenue remaining flat, is the primary observable factor behind the margin weakening.
Gross margin weakened compared to the immediately preceding quarter, but was slightly improved compared to the same quarter one year earlier.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

18.4%

Gross profit

$3.9B

Revenue

$21.1B

Cost of revenue

$17.2B

Quarter-over-quarter change

-0.4 pts

Year-over-year change

+0.1 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

Period	Revenue	Gross profit	Cost of revenue	Gross margin
Dec 28, 2024	$20.2B	$3.6B	$16.5B	18.1%
Mar 29, 2025	$19.6B	$3.6B	$16.0B	18.3%
Jun 28, 2025	$21.1B	$4.0B	$17.2B	18.9%
Sep 27, 2025	$21.1B	$3.9B	$17.2B	18.4%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Jun 28, 2025

-0.4 pts

Year-over-year change

Sep 28, 2024

+0.1 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The sequential decline in gross profit, with revenue remaining flat, is the primary observable factor behind the margin weakening.

Gross margin weakened compared to the immediately preceding quarter, but was slightly improved compared to the same quarter one year earlier.

Monitor inventory levels as reported in the balance sheet, which increased during the current period.