Key Highlights
- Revenue for the third fiscal quarter increased 17% year-over-year to $2.02 billion, surpassing the $1.98 billion Wall Street consensus.
- The company delivered adjusted EPS of 86 cents, exceeding analyst expectations of 76 cents per share.
- Reported net income declined to $97.6 million from $225.5 million in the prior-year period.
- Premarket trading saw shares gain approximately 4% following the earnings announcement.
- Full-year adjusted EPS guidance of $3.05 to $3.13 per share was maintained by the company.
Shares of McCormick (MKC) gained momentum Thursday morning after the flavoring and spice manufacturer delivered impressive quarterly results. The stock advanced roughly 4% during premarket hours.
McCormick & Company, Incorporated, MKC
For its third fiscal quarter, the company reported revenue growth of 17%, reaching $2.02 billion. This figure exceeded analyst projections of $1.98 billion.
On an adjusted basis, earnings per share reached 86 cents. This comfortably beat the Street’s estimate of 76 cents per share.
However, reported net income presented a contrasting picture. The metric fell to $97.6 million, or 36 cents per share, compared to $225.5 million, or 84 cents per share, in the same quarter last year.
The decline in reported net income reflects special charges related to the company’s planned acquisition of Unilever’s food division. Excluding these non-recurring items, the underlying business demonstrated solid expansion.
Business Unit Results
The consumer division delivered a 25% sales increase. The bulk of this expansion stemmed from the McCormick de Mexico transaction rather than core business growth.
McCormick, $MKC, Q3-26.
Sales/EPS beats lift shares ~3.5% premarket, but growth is mostly acquisition-driven.
🟢 Revenue: $2.02B | vs. $1.98B est.
🟢 Adj. EPS: $0.86 | vs. $0.76 est.
📈 Gross margin: 39.3% | +190 bps
🌶️ Organic sales: +1.9% | FY26 outlook reaffirmed pic.twitter.com/2vD6F8WwDN— EarningsTime (@Earnings_Time) October 1, 2026
Stripping out acquisitions, organic consumer sales advanced only 1%, with pricing gains offsetting lower unit volumes. The flavor solutions division posted 8% growth, representing 3% on an organic basis.
Gross margin improved by 190 basis points to 39.3%. Management attributed this expansion to the Mexico acquisition, revenue growth, and continuous cost-reduction initiatives.
Headwinds from elevated commodity prices and transportation expenses partially offset these tailwinds. The company noted that productivity improvements helped mitigate inflationary pressures.
Chief Executive Brendan Foley highlighted the company’s flavor-centric strategy as central to quarterly performance. He emphasized that results demonstrated robust sales momentum, including organic revenue increases throughout the global flavor product line.
Unilever Transaction Update
McCormick continues advancing preparations for its combination with Unilever’s food assets. Foley indicated the company has achieved significant milestones in integration readiness.
This encompasses establishing the post-merger leadership structure and operational framework. Cross-departmental integration teams have been assembled, and detailed continuity plans have been developed ahead of transaction completion.
For the full fiscal year, McCormick maintained its previous outlook. Management continues to project adjusted earnings in the range of $3.05 to $3.13 per share for the period ending November 30.
Annual net sales are anticipated to increase between 13% and 17%. Up to 13 percentage points of this expansion is attributed to the McCormick de Mexico acquisition.
Wall Street analysts are currently modeling adjusted earnings of $3.09 per share for the full year. Revenue is expected to reach $7.91 billion, representing approximately 16% growth versus the prior fiscal year.
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