Spice maker McCormick's Q3 sales, adjusted profit beat expectations
MKC•McCormick reported Q3 sales of $2.02 billion and adjusted EPS of $0.86, beating analyst expectations of $1.98 billion and $0.76. It reaffirmed fiscal 2026 net sales growth guidance of 13% to 17% and adjusted EPS of $3.05 to $3.13.
1. Quarterly results
McCormick's Q3 sales rose 17% year over year to $2.02 billion, while adjusted EPS was $0.86. Adjusted net income was $231.70 million, also above analyst expectations; reported EPS was $0.36.
2. Outlook and drivers
The company reaffirmed its fiscal 2026 outlook, including net sales growth of 13% to 17%, adjusted EPS of $3.05 to $3.13 and adjusted gross margin expansion of 100 to 120 basis points. McCormick said sales growth was largely driven by consolidating McCormick de Mexico, which contributed 14% to the increase. Organic sales growth reflected higher prices, while volume and mix were flat or declining in most segments; cost savings from its CCI program helped expand margins, offsetting higher input and freight costs.
