McCormick Q2 EPS $0.80, Revenue Up 16.7% and Reaffirms 2026 Guidance
MKC•McCormick delivered adjusted Q2 EPS of $0.80 on $1.94 billion revenue, exceeding estimates and posting a 16.7% year-over-year sales increase driven by pricing gains and 1.7% organic growth. The company reaffirmed fiscal 2026 guidance of $3.05-$3.13 EPS and projects 13-17% net sales growth, including an 11-13% acquisition boost.
1. Q2 Financial Results
McCormick reported adjusted earnings of $0.80 per share on $1.94 billion in revenue for the second quarter, surpassing consensus estimates. The 16.7% year-over-year revenue increase was complemented by 1.7% organic sales growth achieved through pricing strategies and cost savings initiatives.
2. Segment Performance
The Consumer segment generated $1.14 billion in net sales, up 22.8% year-over-year, while the Flavor Solutions division posted $794 million, an 8.9% increase. Adjusted operating income rose 30.1% to $336 million, supported by margin expansion to 40.2%.
3. Fiscal 2026 Outlook
Management reaffirmed fiscal 2026 adjusted EPS guidance of $3.05 to $3.13 and expects net sales to grow 13% to 17%, with an 11% to 13% contribution from recent acquisitions. The company forecasts 100 to 120 basis points of adjusted gross margin expansion for the full year.
4. Acquisition and Integration
The recent McCormick de Mexico acquisition and a tariff refund contributed to margin gains, while integration planning for the proposed Unilever Foods combination is underway. Cost savings initiatives remain a focus to drive further profitability improvements.
