UBS Cuts McCormick Price Target to $67 After Q4 Sales and EPS Miss
McCormick posted Q4 2025 net sales of $1.85 billion, up 3% year-over-year with a 1% favorable currency impact, but its EPS fell short of consensus estimates. UBS reduced the company’s price target to $67 from $70 and flagged FY2026 net sales guidance of 13–17% growth as below analyst forecasts.
1. Q4 2025 Results
On January 23 McCormick reported Q4 2025 net sales of $1.85 billion, representing a 3% year-over-year increase with a 1% favorable currency impact. The company cited volume-led organic growth and share gains, while its EPS underperformed consensus estimates.
2. UBS Price Target Revision
UBS maintained a Neutral rating but reduced the price target to $67 from $70, pointing to the Q4 EPS miss and initial FY2026 guidance underperforming expectations. The analyst highlighted margin pressures and rising input costs as primary concerns.
3. FY2026 Guidance and Outlook
McCormick projects FY2026 net sales growth of 13–17%, supported by brand marketing, distribution expansion, productivity initiatives and cost controls. Management plans further innovation and portfolio investments to sustain organic volume gains and offset cost headwinds.