McCormick posts Q3 2026 sales up 17% and adjusted EPS $0.86
McCormick & Company reported third‑quarter 2026 net sales of about $2.02 billion, a 17.4% year‑over‑year increase driven by the Mexico acquisition and modest organic growth. Adjusted earnings per share rose to $0.86, while net income fell 57% to $97.6 million. Gross margin expanded to 39.3% (up 180 basis points) and the company reaffirmed its full‑year outlook, but raised cost‑inflation guidance to 6‑7% and noted a packaging supply constraint that could trim Q4 volume growth.
Why it matters
Analysts cut their price targets to $48 from $55, reflecting concerns over higher cost inflation and the packaging constraint, even though the earnings beat and margin expansion support the outlook. Investors should watch the impact of the cost‑inflation rise and the Q4 volume risk on future earnings.
Key facts
- 1Net sales were $2.02 billion, up 17.4% YoY. uk.investing.com
- 2Adjusted EPS was $0.86. uk.investing.com
- 3Net income dropped 57% to $97.6 million. rttnews.com
- 4Adjusted gross margin was 39.3%, an expansion of 180 basis points. theglobeandmail.com
- 5Full‑year cost inflation guidance was raised to 6‑7%. theglobeandmail.com
- 6Leverage ratio stood at 2.9 times at quarter end. theglobeandmail.com
Summary written by AlphAI from 6 of 6 sources. Not investment advice. Figures are as stated by the linked sources.