Sysco (SYY) risk factors, FY2026 10-K

Sysco's FY2026 10-K, filed Aug 21, 2026, lists 38 risk factors in 3 groups. Against the prior year's 30: 10 new, 2 dropped, 4 substantially reworded.

Risk factors listed
383 groups
New this year
10vs 30 last year
Dropped
2since the prior 10-K
Substantially reworded
4of those kept
Section length
14k wordsItem 1A

What the changes say

  • The proposed Jetro Restaurant Depot transactions add major closing, antitrust, financing, integration, litigation and ownership-dilution risks.

What changed since the prior 10-K

New

  • NewBusiness and Operational Risks

    changes, including 100% bonus depreciation on qualified property. These provisions decreased cash taxes paid in fiscal 2026 and may change the timing of cash tax payments in future periods

    Tax-law changes, including 100% bonus depreciation, reduced fiscal 2026 cash taxes but may shift future payment timing.

  • NewBusiness and Operational Risks

    no assurance that the final determination of tax audits or tax disputes will not be different from what is reflected in our historical income tax provisions and accruals

    Tax audits, disputes and changing U.S. or foreign rules could make recorded tax provisions materially different from final amounts.

  • NewRisks Related to the Transactions

    As used in this section, the following terms have the meanings set forth below

    Defines the parties, merger subsidiaries and transaction terms used in the Jetro Restaurant Depot acquisition disclosures.

  • NewRisks Related to the Transactions

    The Transactions are subject to conditions, some or all of which may not be satisfied or completed on a timely basis, if at all. Failure to complete the Transactions in a timely manner or at all could have adverse effects on us

    The Jetro Restaurant Depot transactions could be delayed or abandoned if HSR or other closing conditions are not satisfied.

  • NewRisks Related to the Transactions

    We and Jetro Restaurant Depot are subject to business uncertainties and contractual restrictions while the Transactions are pending

    Transaction uncertainty could distract management, weaken employee retention and disrupt Sysco’s and Jetro Restaurant Depot’s customer, supplier and commercial relationships.

  • NewRisks Related to the Transactions

    The mergers are subject to the requirements of the HSR Act, and regulatory authorities may impose conditions that could have an adverse effect on us following the Transactions or that could delay, prevent or increase the costs associated with completion of the Transactions

    The FTC’s HSR second requests could impose conditions, delay closing or increase transaction costs and restrict the combined business.

  • NewRisks Related to the Transactions

    We expect to obtain financing in connection with the Transactions but cannot guarantee that we will be able to obtain such financing on favorable terms or at all

    Sysco may not secure the remaining $19 billion of financing needed for the $21.6 billion cash purchase and related costs.

  • NewRisks Related to the Transactions

    We may not achieve the intended benefits, and the Transactions may disrupt our current plans or operations

    Sysco may fail to integrate Jetro Restaurant Depot or achieve expected purchasing, supply-chain and other cost synergies.

  • NewRisks Related to the Transactions

    Potential litigation against us could result in substantial costs, an injunction preventing the completion of the Transactions and/or a judgment resulting in the payment of damages

    Stockholder litigation over the mergers could impose defense costs, damages or an injunction delaying completion.

  • NewRisks Related to the Transactions

    Our existing stockholders will have reduced ownership and economic interest in Sysco Holdings after the Transactions

    Existing Sysco holders are expected to own 84% of Sysco Holdings, while Jetro Restaurant Depot holders receive 16%, reducing their relative interest.

Dropped

  • DroppedIndustry and General Economic Risks

    limiting price increases or may require increased discounting or other concessions. Such competition or other industry pressures may result in margin erosion and/or make it difficult for us to attract and retain customers

  • DroppedBusiness and Operational Risks

    comply with data privacy laws can result in substantial fines or penalties, legal liability and / or reputational damage and litigation

Reworded

  • 87% rewrittenBusiness and Operational Risks

    Our failure to comply with data privacy regulations could adversely affect our business

    Adds specific U.S. state privacy-law expansion and expressly identifies fines, legal liability, reputational damage and litigation as consequences.

  • 46% rewrittenBusiness and Operational Risks

    Changes in applicable tax laws or regulations and the resolution of tax disputes could negatively affect our financial results

    The provided excerpts are substantively unchanged, continuing to warn that tax-law changes can increase the effective tax rate.

  • 38% rewrittenBusiness and Operational Risks

    Failure to successfully renegotiate union contracts could result in work stoppages, which could have a material adverse effect on our business, financial condition and results of operations

    Renegotiation exposure moves from fiscal 2026 to fiscal 2027 and rises from 14% of union employees to 26% of U.S. and 22% of international union employees.

  • 24% rewrittenIndustry and General Economic Risks

    Competition and the impact of GPOs may reduce our margins and make it difficult for us to maintain our market share, growth rate and profitability

    The provided text is substantively unchanged and continues describing fragmented competition, purchasing cooperatives, low entry barriers and local-cost advantages.

All 38 risk factors

Headings as the filing states them, in filing order.

Industry and General Economic Risks

  1. 01Our industry is characterized by low margins, and periods of significant or prolonged inflation or deflation affect our product costs and may negatively impact our profitability and results of operations
  2. 02A shortage of qualified labor and increases in labor costs could adversely affect our business and materially reduce earnings
  3. 03Global health developments and economic uncertainty resulting from global public health crises may adversely affect our business, financial condition and results of operations
  4. 04Unfavorable macroeconomic conditions, as well as unfavorable conditions in particular local markets, may adversely affect our results of operations and financial condition
  5. 05We may not be able to fully compensate for increases in fuel costs, and fuel hedging arrangements intended to contain fuel costs could result in above market fuel costs, any of which could adversely affect our results of operations
  6. 06Economic and political instability and changes in laws and regulations could adversely affect our results of operations and financial condition
  7. 07Competition and the impact of GPOs may reduce our margins and make it difficult for us to maintain our market share, growth rate and profitability 24% rewritten

Business and Operational Risks

  1. 08Conditions beyond our control can interrupt our supplies, increase our product costs and impair our ability to deliver products and services to our customers, any of which could adversely affect our business, results of operations and financial condition
  2. 09Climate change and other social and governance matters, as well as the legal, regulatory or market measures being implemented to address such matters, may have an adverse impact on our business, results of operations and financial condition
  3. 10Adverse publicity about us or lack of confidence in our products could negatively impact our reputation and reduce earnings
  4. 11Our relationships with long-term customers may be materially diminished or terminated, which could adversely affect our business, financial condition and results of operations
  5. 12Our anticipated change to the mix of locally managed customers versus multi-unit customers could reduce our gross and operating margins
  6. 13Changes in consumer eating habits could materially and adversely affect our business, financial condition, and results of operations
  7. 14Expanding into new markets and complementary lines of business presents unique challenges and may not be successful, and failure to successfully expand may adversely affect the implementation of our business strategy
  8. 15Changes in applicable tax laws or regulations and the resolution of tax disputes could negatively affect our financial results46% rewritten
  9. 16changes, including 100% bonus depreciation on qualified property. These provisions decreased cash taxes paid in fiscal 2026 and may change the timing of cash tax payments in future periodsNew
  10. 17no assurance that the final determination of tax audits or tax disputes will not be different from what is reflected in our historical income tax provisions and accrualsNew
  11. 18If our products are alleged to have caused injury, illness, or death, or to have failed to comply with governmental regulations, we may need to recall or withdraw our products and may experience product liability claims
  12. 19If we fail to comply with requirements imposed by applicable law or other governmental regulations, we could become subject to lawsuits, investigations and other liabilities and restrictions on our operations that could materially adversely affect our business
  13. 20We may incur significant costs to comply with environmental laws and regulations, and we may be subject to substantial fines, penalties or third-party claims for non-compliance
  14. 21If we are unable to finance and integrate acquired businesses effectively, our earnings per share could be materially adversely affected
  15. 22We rely on technology in our business, and any cybersecurity incident, other technology disruption or delay in implementing new technology could negatively affect our business and our relationships with customers
  16. 23Our growing use of artificial intelligence systems in our operations poses inherent risks and could adversely affect our results of operations
  17. 24Our failure to comply with data privacy regulations could adversely affect our business87% rewritten
  18. 25Our level of indebtedness and the terms of our indebtedness could adversely affect our business and liquidity position
  19. 26We may be required to pay material amounts under multiemployer defined benefit pension plans, which could adversely affect our financial condition, results of operations and cash flows
  20. 27Our funding requirements for our company-sponsored qualified pension plan may increase should financial markets experience future declines, which could adversely affect our financial condition, results of operations and cash flows
  21. 28Failure to successfully renegotiate union contracts could result in work stoppages, which could have a material adverse effect on our business, financial condition and results of operations 38% rewritten

Risks Related to the Transactions

  1. 29As used in this section, the following terms have the meanings set forth belowNew
  2. 30The Transactions are subject to conditions, some or all of which may not be satisfied or completed on a timely basis, if at all. Failure to complete the Transactions in a timely manner or at all could have adverse effects on usNew
  3. 31We and Jetro Restaurant Depot are subject to business uncertainties and contractual restrictions while the Transactions are pendingNew
  4. 32The mergers are subject to the requirements of the HSR Act, and regulatory authorities may impose conditions that could have an adverse effect on us following the Transactions or that could delay, prevent or increase the costs associated with completion of the TransactionsNew
  5. 33We expect to obtain financing in connection with the Transactions but cannot guarantee that we will be able to obtain such financing on favorable terms or at allNew
  6. 34We may not achieve the intended benefits, and the Transactions may disrupt our current plans or operationsNew
  7. 35Potential litigation against us could result in substantial costs, an injunction preventing the completion of the Transactions and/or a judgment resulting in the payment of damagesNew
  8. 36Our existing stockholders will have reduced ownership and economic interest in Sysco Holdings after the TransactionsNew
  9. 37Our authorized preferred stock provides anti-takeover benefits that may not be viewed as beneficial to stockholders
  10. 38Our amended and restated bylaws provide that the Court of Chancery of the State of Delaware will be the exclusive forum for certain stockholder litigation matters, which could limit our stockholders’ ability to obtain a favorable judicial forum for disputes with us or our directors, officers or employees

Other Sysco 10-Ks

  • FY2025 10-K risk factors
    30 risks

    Low operating margins and inflation exposure dominate Sysco's risks alongside heavy reliance on labor, fuel, and technology.

    Filed Aug 22, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.