Sysco Corporation stock research
FY2026 Q2
Sysco (SYY) Gross Margin — Quarter Ended Dec 27, 2025
Revenue declined sequentially while cost of revenue fell less, resulting in a slightly lower gross margin. Compared with the same quarter last year, revenue and gross profit both increased, and gross margin improved.
Gross margin takeaway
Quarter ended Dec 27, 2025 · FY2026 Q2
Revenue declined sequentially while cost of revenue fell less, resulting in a slightly lower gross margin. Compared with the same quarter last year, revenue and gross profit both increased, and gross margin improved.
- The gross margin movement is primarily driven by the relationship between revenue and cost of revenue. Sequentially, revenue decreased while cost of revenue declined at a slower pace, compressing margin; year-over-year, revenue grew faster than cost of revenue, expanding margin.
- Compared to the immediately preceding quarter, gross margin weakened slightly. Compared to the same quarter one year earlier, gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
18.3%
Gross profit
$3.8B
Revenue
$20.8B
Cost of revenue
$17.0B
Quarter-over-quarter change
-0.2 pts
Year-over-year change
+0.2 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 |
|---|---|---|---|---|
| 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% |
| Dec 27, 2025 | $20.8B | $3.8B | $17.0B | 18.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 27, 2025
-0.2 pts
Year-over-year change
Dec 28, 2024
+0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin movement is primarily driven by the relationship between revenue and cost of revenue. Sequentially, revenue decreased while cost of revenue declined at a slower pace, compressing margin; year-over-year, revenue grew faster than cost of revenue, expanding margin.
Compared to the immediately preceding quarter, gross margin weakened slightly. Compared to the same quarter one year earlier, gross margin improved.
Monitor inventory levels as reported in the balance sheet, which increased from the prior fiscal year-end, as a concrete indicator of potential cost of revenue trends.