Piper Sandler raised its one-year price target on Sysco (NYSE: SYY) to $83.00 from $80.00, while keeping a Neutral rating, following the company’s fiscal second-quarter 2026 report. The updated target is marginally below Sysco’s then-current trading level of $83.92. Proprietary fair-value model outputs cited alongside the update indicate the shares remained undervalued according to that valuation framework.
Sysco disclosed that total U.S. Foodservice (USFS) case growth for the quarter was 0.8%, roughly in line with expectations. A notable detail inside that figure was U.S. Local case growth of 1.2%, which the company described as a return to positive territory for this important segment. Over the last twelve months Sysco’s revenue totaled $82.03 billion.
The company told investors that it expects Local case growth of at least 2.5% in each of the next two quarters - a target that, if realized, would represent an improvement in the two-year trend relative to recent performance.
With two quarters remaining in fiscal 2026, Sysco indicated it is tracking toward the high end of its previously stated adjusted earnings-per-share guidance range of $4.50 to $4.60. Management’s directional comment accompanied the quarterly release and contributed to investor optimism.
The combination of the positive guidance signal and the return to Local segment growth helped drive an 11.0% jump in Sysco’s share price following the earnings announcement and conference call. That move pushed the stock close to its 52-week high of $83.96. Over the past year the shares have delivered a total return of 19.36%.
Additional line-item results for the fiscal second quarter of 2026 showed Sysco reported earnings per share of $0.99, narrowly beating the $0.98 estimate. Quarterly revenue came in at $21.0 billion against a forecast of $20.78 billion, a performance that exceeded consensus expectations for the period.
Observers noted that Sysco remains a major participant in the Consumer Staples Distribution and Retail sector and that the company continues a long record of returning capital to shareholders, having paid dividends for 56 consecutive years.
What the numbers mean
The quarter combined modest volume gains with small but meaningful upside versus analyst expectations on both revenue and EPS. Management’s projection of sustained Local case growth and its guidance commentary pointing to the upper end of the fiscal-year EPS range suggest the company sees momentum that could persist into the remaining two quarters.
At the same time, the analyst community’s decision to leave a Neutral rating in place while nudging the target higher reflects a cautious view on upside from current levels despite the outperforming quarter.
Bottom line
Sysco delivered a quarter that met or slightly exceeded expectations on key measures and asserted a pathway to stronger Local case growth in the near term. The market reacted positively, but at least one major analyst kept a Neutral stance even as it raised the price target to $83.