McCormick Reports Q3 2026 Earnings and Reaffirms Full-Year Guidance

Executive Summary

On October 1, 2026, McCormick & Company, Incorporated (NYSE: MKC, MKC.V) submitted a Form 8-K under Item 2.02 (Results of Operations and Financial Condition), furnishing its press release for the third quarter of fiscal year 2026 ended August 31, 2026.

Key Financial Metrics — Q3 FY2026

• Net Sales: $2,024.8 million, up 17.4% year-over-year (+16.5% constant currency).
  • Organic Sales Growth: +1.9% (driven by +2.2% price offset slightly by -0.3% volume/mix).
  • Acquisition Impact: +14.6% contribution, primarily reflecting the acquisition of a controlling interest in McCormick de Mexico.
  • Foreign Exchange: +0.9% favorable impact.
• Segment Performance:
  • Consumer Segment: Net sales of $1,215.4 million, up 24.9% reported (+1.1% organic).
  • Flavor Solutions Segment: Net sales of $809.4 million, up 7.7% reported (+3.0% organic).
• Profitability & Margins:
  • Gross Profit: $794.9 million, gross margin expanding 190 bps to 39.3% (adjusted gross margin expanded 180 bps).
  • Operating Income: $217.0 million (reported, down 24.8% due to $141.5 million in special charges and project impairment).
  • Adjusted Operating Income: $358.5 million, up 22.1% YoY (+20.9% constant currency).
• Earnings Per Share (EPS):
  • Diluted EPS: $0.36 versus $0.84 in Q3 2025, impacted by $0.50 per share in special charges (including transaction/integration costs and an asset impairment related to ceasing a development-stage pepper sourcing project in Malaysia).
  • Adjusted Diluted EPS: $0.86 versus $0.85 in Q3 2025 (+1.2%).

Fiscal Year 2026 Guidance Reaffirmed

McCormick reiterated its full-year 2026 projections:

• Reported Net Sales Growth: 13% to 17% (12% to 16% constant currency; 1% to 3% organic).
• Adjusted Operating Income Growth: 16% to 20% (15% to 19% constant currency).
• Adjusted Diluted EPS: $3.05 to $3.13, reflecting growth of 2% to 5% (1% to 4% constant currency).

Strategic Combinations & Integration

• McCormick de Mexico: Substantially integrated following the January 2, 2026 acquisition of an additional 25% ownership stake, providing steady sales and margin accretion.
• Proposed Unilever Foods Combination: Integration planning is progressing on schedule, with Day 1 operational models established and regulatory submissions underway across jurisdictions. The transaction remains targeted to close by mid-2027.