IFF Reports Third Quarter 2026 Results
INTERNATIONAL FLAVORS & FRAGRANCES INC (IFF) filed an SEC Form 8-K — Results of Operations and Financial Condition. FOR IMMEDIATE RELEASE Media Relations: Jennifer McGowan 848.358.1680 Media.request@iff.com Investor Relations: Michael Bender 212.708.7263 Investor.Relations@iff.com IFF Reports Third Quarter 2026 Results Delivered Strong Sales, Profit and Cash Flow Performance in Third Quarter 2
How this was made
The 30-second read
Why it matters
The earnings beat and raised guidance provide fresh data for traders to adjust positions.
Market read
First‑time disclosure of earnings and guidance for a large‑cap company, likely to move the stock.
What to watch
Higher costs in Health & Biosciences may temper fourth‑quarter profitability despite higher guidance.
IFF Reports Third Quarter 2026 Results Delivered Strong Sales, Profit and Cash Flow Performance in Third Quarter 2026 Raising Low-End of Full Year 2026 Financial Guidance Ranges
Third-quarter net sales increased 4%, comparable currency neutral sales increased 5%, and adjusted operating EBITDA increased 5% on a reported basis. All three operating segments posted reported sales growth, while the company raised the low ends of its full-year sales, adjusted operating EBITDA, and comparable currency neutral growth ranges. Reported continuing-operations results were affected by a $236 million loss on assets classified as held for sale, resulting in a $(134) million loss before taxes and $(0.50) diluted EPS.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 net salesGAAP | $1.94B | – | 4 % |
| Q3 2026 comparable currency neutral salesnon-GAAP | $1.95B | – | 5% |
| Q3 2026 cost of salesGAAP | 1,117 | – | 4 % |
| Q3 2026 gross profitGAAP | 825 | – | 3 % |
| Q3 2026 research and development expensesGAAP | 170 | – | 5 % |
| Q3 2026 selling and administrative expensesGAAP | 387 | – | 11 % |
| Q3 2026 amortization of acquisition-related intangiblesGAAP | 78 | – | (7) % |
| Q3 2026 impairment of goodwillGAAP | 23 | – | NMF |
| Q3 2026 restructuring and other chargesGAAP | 5 | – | (64) % |
| Q3 2026 operating profitGAAP | 160 | – | (16) % |
| Q3 2026 loss from continuing operations before taxesGAAP | −$134M | – | (203) % |
| Q3 2026 net loss from continuing operationsGAAP | −$127M | – | (228) % |
| Q3 2026 net lossGAAP | $ (55) | – | (234) % |
| Q3 2026 net loss attributable to IFF shareholdersGAAP | $ (55) | – | (238) % |
| Q3 2026 diluted EPS from continuing operationsGAAP | $ (0.50) | – | – |
| Q3 2026 diluted EPSGAAP | $ (0.22) | – | – |
| Q3 2026 adjusted operating EBITDAnon-GAAP | $403M | – | 5% |
| Q3 2026 adjusted operating EBITDA marginnon-GAAP | 20.8% | – | 0.3% |
| Q3 2026 comparable currency neutral adjusted operating EBITDAnon-GAAP | $404M | – | 6% |
| Q3 2026 adjusted EPSnon-GAAP | $ 0.58 | – | – |
| Q3 2026 adjusted EPS ex. amortizationnon-GAAP | $ 0.83 | – | – |
| First nine months 2026 net salesGAAP | $5.80B | – | (1) % |
| First nine months 2026 gross profitGAAP | 2,507 | – | 1 % |
| First nine months 2026 operating profitGAAP | 571 | – | 12 % |
| First nine months 2026 income from continuing operations before taxesGAAP | $126M | – | (81) % |
| First nine months 2026 net income from continuing operationsGAAP | $ 61 | – | (91) % |
| First nine months 2026 net incomeGAAP | $166M | – | (144) % |
| First nine months 2026 net income attributable to IFF shareholdersGAAP | $164M | – | (143) % |
| First nine months 2026 diluted EPS from continuing operationsGAAP | $ 0.23 | – | – |
| First nine months 2026 diluted EPSGAAP | $ 0.64 | – | – |
| First nine months 2026 adjusted operating EBITDAnon-GAAP | $1.24B | – | 1% |
| First nine months 2026 adjusted operating EBITDA marginnon-GAAP | 21.4% | – | 0.4% |
| First nine months 2026 adjusted EPSnon-GAAP | $ 1.84 | – | – |
| First nine months 2026 adjusted EPS ex. amortizationnon-GAAP | $ 2.58 | – | – |
| First nine months 2026 net cash provided by operating activitiesGAAP | 820 | – | – |
| First nine months 2026 additions to property, plant and equipmentGAAP | (449) | – | – |
| First nine months 2026 free cash flownon-GAAP | $371M | – | increasing $245 million year-over-year |
| September 30, 2026 net debt to credit adjusted EBITDAnon-GAAP | 2.75x | – | – |
| September 30, 2026 total debt to trailing twelve months net incomeother | 34.5x | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| TasteComparable currency neutral sales increased 6% with broad-based growth in all regions led by a double-digit increase in Greater Asia. Comparable currency neutral adjusted operating EBITDA increased 7% driven by volume growth. | $687M | – | 4% |
| Health & BiosciencesComparable currency neutral sales increased 1% with growth in nearly all businesses. Mid-single digit growth in Food Biosciences and Grain Processing more than offset a decline in Health. Comparable currency neutral adjusted operating EBITDA increased 2%. | $566M | – | 1% |
| ScentComparable currency neutral sales increased 6% led by high-single digit growth in Consumer Fragrances. Fine Fragrance and Fragrance Ingredients both grew mid-single digits. Comparable currency neutral adjusted operating EBITDA increased 10% driven by volume growth. | $689M | – | 6% |
Amounts quoted below without a unit are in millions, as in the filing’s tables. Per-share figures are as printed.
Full year 2026 outlook
- Revenue$7.5 billion to $7.6 billion
- NoteAdjusted operating EBITDA: $1.55 billion to $1.60 billion
- NoteComparable currency neutral sales growth: 3% to 4%
- NoteComparable currency neutral adjusted operating EBITDA growth: 5% to 8%
- NoteForeign exchange is expected to have an approximately 1% positive impact on sales growth
- NoteForeign exchange is expected to have an approximately 2% positive impact on adjusted operating EBITDA growth in 2026
Capital returns
- Recently completed $500 million accelerated share repurchase program.
- Purchases of treasury stock were $(584) million for the nine months ended September 30, 2026.
- Cash dividends paid to shareholders were $(306) million for the nine months ended September 30, 2026.
What drove it
- Reported Q3 net sales increased 4%, while comparable currency neutral sales increased 5%, led by broad-based growth.
- Volume growth drove comparable currency neutral adjusted operating EBITDA improvement in Taste and Scent.
- Health & Biosciences EBITDA improvement reflected an even contribution from volume growth and favorable net price to input costs.
- The company said customers continue to value its strong R&D and innovation.
- The Food Ingredients divestiture is progressing and is on track to close by the end of the second quarter of 2027.
Concerns
- Q3 loss from continuing operations before taxes was $(134) million, including a $236 million loss on assets classified as held for sale.
- Q3 operating profit declined (16) % and reported diluted EPS from continuing operations was $(0.50).
- Management expects fourth-quarter profitability to be softer, particularly in Health & Biosciences, reflecting higher costs and reinvestments to strengthen the business.
- Health & Biosciences comparable currency neutral sales increased 1%, and Health declined despite growth in Food Biosciences and Grain Processing.
- Regulatory costs were $34 million in Q3 and $115 million for the first nine months of 2026.
What to watch
- Fourth-quarter profitability, particularly in Health & Biosciences, where management expects higher costs and reinvestment.
- Delivery against full-year sales guidance of $7.5 billion to $7.6 billion and adjusted operating EBITDA guidance of $1.55 billion to $1.60 billion.
- Progress toward closing the Food Ingredients divestiture by the end of the second quarter of 2027.
- The effect of approximately 1% positive foreign exchange impact on sales growth and approximately 2% positive foreign exchange impact on adjusted operating EBITDA growth.
- Leverage following the accelerated share repurchase program, debt activity, and the planned Food Ingredients separation.
Balance sheet and cash flow
- Cash and cash equivalents were $ 272 as of September 30, 2026, compared with $ 347 as of December 31, 2025.
- Cash and cash equivalents, including amounts in discontinued operations and assets held for sale, were $ 519 as of September 30, 2026.
- Short-term borrowings were $ 1,538 and long-term debt was $ 4,735 as of September 30, 2026.
- Total debt was $ 6,307 and net debt was $ 5,788 as of September 30, 2026.
- Net cash provided by operating activities was 820 for the nine months ended September 30, 2026, compared with 532 in 2025.
- Net cash used in financing activities was (609) for the nine months ended September 30, 2026, compared with (2,891) in 2025.
- Net proceeds received from business disposals were 247 for the nine months ended September 30, 2026, compared with 2,707 in 2025.
Analysis
IFF reported stronger third-quarter underlying operating performance on a continuing-operations basis. Net sales were $ 1,942, up 4 %, and comparable currency neutral sales increased 5%. The growth was broad-based across the portfolio, with Taste and Scent each delivering 6% comparable currency neutral sales growth and Health & Biosciences growing 1%. The company attributed the performance to solid volumes and customer demand for R&D and innovation.
Profit performance was stronger on an adjusted basis but was obscured in reported results by disposal-related charges. Adjusted operating EBITDA was $ 403, compared with $ 384, while adjusted operating EBITDA margin was 20.8%, compared with 20.5 %. Scent delivered the largest comparable currency neutral adjusted operating EBITDA increase at 10%, followed by Taste at 7%. Reported operating profit fell to 160 from 191, and the company recorded a $236 million loss on assets classified as held for sale, contributing to a $(134) million loss from continuing operations before taxes and $(0.50) diluted EPS from continuing operations.
Cash generation was a major feature of the release. Net cash provided by operating activities was 820 for the first nine months, compared with 532 in the prior-year period. The company reported free cash flow of $371 million, increasing $245 million year-over-year. Capital allocation included completion of a $500 million accelerated share repurchase program, purchases of treasury stock of $(584) million, and cash dividends paid to shareholders of $(306) million. Net debt was $ 5,788 at September 30, 2026, and net debt to credit adjusted EBITDA was 2.75x.
IFF raised the low end of all principal full-year operating outlook ranges. Sales guidance is now $7.5 billion to $7.6 billion, versus $7.4 billion to $7.6 billion previously, and adjusted operating EBITDA guidance is now $1.55 billion to $1.60 billion, versus $1.53 billion to $1.60 billion previously. Comparable currency neutral sales growth guidance moved to 3% to 4%, and comparable currency neutral adjusted operating EBITDA growth guidance moved to 5% to 8%. Management nevertheless expects fourth-quarter profitability to be softer, particularly in Health & Biosciences, due to higher costs and reinvestments.
Portfolio actions remain material to the reported financial profile. Results are presented on a continuing-operations basis, excluding the Food Ingredients disposal group, SCL disposal group, and other minor perimeter adjustments. The Food Ingredients divestiture is on track to close by the end of the second quarter of 2027. Investors should monitor disposal-related charges, regulatory costs, the expected Health & Biosciences margin pressure in the fourth quarter, and execution against the raised full-year outlook.
Management, verbatim
IFF delivered a solid third quarter, with improved sales and profitability across all divisions.
Erik Fyrwald, CEO of IFF
Heading into year-end, we are raising the low end of our full-year financial guidance ranges, supported by our year-to-date performance.
Erik Fyrwald, CEO of IFF
Not in the filing
stated, not guessed- Prior-quarter comparisons were not reported for the presented Q3 metrics.
- Q3 operating cash flow and Q3 free cash flow were not reported.
- A Q3 GAAP gross margin percentage was not reported.
- Full-year 2026 guidance for gross margin, operating expenses, and tax rate was not reported.
- Previous-release outlook was not provided; therefore, no actual-versus-prior-guidance comparison is included.
- A reported Q3 cash balance including discontinued operations was not presented as a Q3 comparative metric; the filing presents the combined cash and cash equivalents reconciliation as of September 30, 2026.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
IFF released its Q3 2026 earnings via an SEC Form 8‑K, highlighting sales growth, cash flow strength, and a $500 M share repurchase completion.
Ticker impact
IFF reported Q3 2026 results and raised the low‑end of its full‑year 2026 sales and EBITDA guidance.
likely upward pressure as investors price in higher sales and EBITDA expectations
The company disclosed stronger Q3 performance and lifted the low‑end of its FY guidance, a material new fact for a large‑cap issuer.
Market effects
Flavor and fragrance sector may see a modest rally on improved earnings outlook.
North American markets could see a small lift in consumer‑goods indices.
Limited; impact confined to IFF and its immediate peers.
Counterpoint
If the raised guidance is already priced in, the stock could face a short‑term pullback.
Key entities
- personErik Fyrwald
CEO of IFF who commented on the results
