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McCormick

McCormick (MKC) Q2 2026 Earnings

Reported Jun 25, 2026 at 7:24 AM ET · SEC Source

Q2 26 EPS

$0.80

BEAT +14.79%

Est. $0.70

Q2 26 Revenue

$1.94B

BEAT +1.23%

Est. $1.91B

vs S&P Since Q2 26

+4.8%

BEATING MARKET

MKC +7.2% vs S&P +2.4%

Market Reaction

Did MKC Beat Earnings? Q2 2026 Results

McCormick & Company posted a standout second quarter of fiscal 2026, with adjusted EPS of $0.80 beating the $0.70 consensus estimate by 14.79% and net sales of $1.94 billion topping expectations by 1.23% while rising 16.7% year-over-year. The headlin… Read more McCormick & Company posted a standout second quarter of fiscal 2026, with adjusted EPS of $0.80 beating the $0.70 consensus estimate by 14.79% and net sales of $1.94 billion topping expectations by 1.23% while rising 16.7% year-over-year. The headline driver was the consolidation of McCormick de Mexico, which contributed roughly 12 percentage points of that revenue growth, while a $28.00 million IEEPA tariff refund provided a meaningful tailwind to gross margin, which expanded 270 basis points to 40.2%. Adjusted operating income climbed 30.1% to $336.40 million as the Consumer segment reached $1.14 billion in sales and the Flavor Solutions segment posted $794.00 million, with the latter showing accelerating organic momentum. Notably, pre-quarter expectations had called for flat earnings near 69 cents per share, making the actual result a significant upside surprise. McCormick reaffirmed its fiscal 2026 adjusted EPS guidance of $3.05 to $3.13, reflecting 2% to 5% growth, with reported net sales growth of 13% to 17% and continued integration planning for the proposed Unilever Foods combination.

Key Takeaways

  • • McCormick de Mexico acquisition contributed approximately 12% to net sales growth
  • • IEEPA tariff refund of $28 million reduced COGS, contributing ~140 bps to gross profit margin expansion
  • • Accelerated organic momentum in Flavor Solutions at 2.9% organic growth driven by Flavors and Branded Foodservice customers
  • • CCI (Comprehensive Continuous Improvement) program drove cost savings and productivity improvements
  • • Pricing actions contributed 2.2% to organic sales growth
  • • Favorable currency impact of 2.7% on net sales
  • • Lower adjusted effective tax rate of 22.5% vs. 24.1% in year-ago period

MKC Forward Guidance & Outlook

McCormick reaffirmed its fiscal 2026 outlook: reported net sales growth of 13% to 17% (12% to 16% constant currency), including 11% to 13% contribution from the McCormick de Mexico acquisition and 1% to 3% organic sales growth. Adjusted operating income is expected to grow 16% to 20% (15% to 19% constant currency). Adjusted EPS is guided at $3.05 to $3.13, representing 2% to 5% growth (1% to 4% constant currency). Adjusted gross margin is now expected to expand 100 to 120 basis points from 2025. The company expects a tax rate of approximately 24.0% (vs. 21.5% in 2025), higher net interest expense primarily from the McCormick de Mexico transaction, and a 1% favorable impact from foreign currency across sales, adjusted operating income, and adjusted EPS. The IEEPA tariff refund benefit is expected to be offset by increased inflationary costs including Middle East conflict-related costs. The company expects strong cash flow driven by profit and working capital initiatives.

24/7 Wall St

MKC YoY Financials

Q2 2026 vs Q2 2025, source: SEC Filings

24/7 Wall St

MKC Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q2 26

“Second quarter results demonstrate the continued strength and resilience of our business in a dynamic operating environment. Total organic growth was driven by accelerated momentum in Flavor Solutions, with gains across Flavors and Branded Foodservice customers, highlighting the benefits of our diversified flavor focused portfolio. We also effectively managed elevated inflation and incremental costs related to the Middle East conflict through productivity initiatives and cost savings programs, resulting in underlying margin improvement for the quarter. In addition, our performance was supported by accretion from the McCormick de Mexico acquisition.”

— Brendan M. Foley, Q2 2026 Earnings Press Release

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