Sysco Gained 2% on Outlook Hike: Why 50% Upside Could Come in 2026

Wiltone Asuncion4 minute read
Reviewed by: Thomas Richmond
Last updated Feb 4, 2026

Key Stats for Sysco Corporation Stock

  • Price Change: +2.1%
  • Current Price: $85
  • Advanced Model Target: $127

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What Happened?

Shares of Sysco Corporation (SYY) gained 2.1% to close at $85 after the company delivered a “win-win-win” earnings report for the second quarter.

The food distribution leader recently raised its full-year 2026 adjusted EPS guidance to the high end of the $4.50 to $4.60 range.

Additionally, a major recent highlight is the completed acquisition of Ginsberg’s Foods, which significantly expands Sysco’s footprint in the population-dense Northeast corridor.

Management also confirmed that the strategic exit from the FreshPoint business is now complete, which is expected to be accretive to margins moving forward.

Furthermore, analysts at Goldman Sachs recently maintained a Buy rating, citing the successful deployment of the AI 360 tool to drive sales productivity.

While sector peers like US Foods (NYSE:USFD) and United Natural Foods (NYSE:UNFI) manage supply chain shifts, Sysco’s International segment saw operating income grow nearly 26.0%.

Sysco Corporation Stock Price Target (TIKR)

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Is Sysco Corporation Undervalued Today?

On the latest conference call, CEO Kevin Hourican expressed deep confidence in the company’s ability to maintain its current momentum.

He stated: “I am pleased to report that Sysco delivered strong results in the second quarter of fiscal 2026. Our results were enabled by improving case volume trends, strengthening gross margin performance and disciplined expense management.”

Furthermore, regarding the impact of the new AI 360 CRM tool, he noted that the internal data science is already resulting in a measurable sales lift for the team.

He noted: “The math is very clear. If you use the tool, you sell more.”

The firm expects that its local case growth will accelerate to at least 2.5% in the second half of the year as newer sales professionals climb the productivity curve.

Read the full SYY Transcript on TIKR to see the 2026 AI roadmap >>>

According to TIKR’s Advanced Valuation Model, the stock is positioned for significant capital appreciation as its higher-margin initiatives take hold.

  • Target Price: $127
  • Current Price: $85
  • Potential Upside: +50.1%

The investment case for Sysco (SYY) centers on its dominant market share and the transition toward high-margin specialty and international segments.

If Sysco (SYY) continues to drive local volume growth and successfully integrates the Northeast expansion as discussed, the gap to $127 could close significantly in 2026.

Conclusion: The food distribution giant is engineering a high-quality recovery. With a 50.1% upside potential and a model pointing to $127, Sysco stock offers a resilient mix of dividend aristocrat status and high-tech operational growth through 2026.

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How Much Upside Does Sysco Corporation Stock Have From Here?

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  2. Operating Margins
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Disclaimer:

Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!

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