Sysco Raises Mid-Term Growth Targets, Announces $500 Million AI Efficiency Programme
Sysco Corporation (NYSE:SYY) has raised its mid-term growth targets for fiscal years 2028 and 2029 while reaffirming guidance for FY2027. The company now expects annualised net sales growth of between 4% to 7%, up from a previous range of 4% to 6%. Adjusted EPS growth is also increased, with the target raised to 9% to 11% compared to prior expectations of 6% to 8%. These updates exclude the pending Jetro Restaurant Depot acquisition. In addition, Sysco announced a multi-year AI and automation initiative aimed at generating $500 million in efficiency savings by FY2029. The AI programme will focus on modernising routing software, improving supply-chain productivity, automating merchandising and procurement processes, managing indirect spending, and streamlining back-office operations. CEO Kevin Hourican stated that the changes represent a durable shift in how Sysco operates daily across key areas like truck routing and sales execution. The $100 million of savings expected during FY2027 is already factored into current guidance.
Tickers: $SYY
Topics: AI efficiency savings EPS forecast sales growth