The Sysco AI savings program is targeting at least $500 million in efficiency gains by fiscal 2029, combining new automation projects with cost reductions already included in the food distributor’s current outlook. Sysco (NYSE: SYY) also raised its medium-term sales and earnings growth objectives.
In its September 9 investor update, the company reaffirmed fiscal 2027 guidance for net sales growth of roughly 6% to 7%, which would bring revenue to approximately $90 billion. Adjusted earnings per share are still expected to grow between 9% and 11%, with a projected range of $5.02 to $5.12.
Where the Sysco AI Savings Program Will Focus
Management identified truck-routing modernization, warehouse productivity, automated merchandising and procurement, strategic sourcing, indirect spending and back-office simplification as the main workstreams. Sysco expects $100 million of net savings during fiscal 2027, an amount already embedded in its guidance.
For fiscal 2028 and 2029, the company increased its annual sales growth target to 4% to 7% from 4% to 6%. It also lifted the adjusted EPS growth objective to 9% to 11% from the previous 6% to 8% range.
The Sysco AI savings target is a management forecast rather than a guaranteed outcome. The benefits will depend on implementation across a large distribution network and on whether technology-driven reductions can be achieved without weakening customer service. The company also expects the planned Jetro Restaurant Depot transaction to close by the third quarter of fiscal 2027, adding another factor to its leverage and execution outlook.
