McCormick (MKC) Q3 2026 Earnings
Special charges of $0.50 per share including a $43.1 million noncash impairment charge and $1.8 million exit costs related to ceasing operations of a development-stage pepper sourcing project in Malaysia, plus transaction and integration costs including $12.4 million of transaction expenses in interest expense
How Did MKC Stock React to Q3 2026 Earnings?
Did MKC Beat Earnings? Q3 2026 Results
Yes. McCormick reported Q3 2026 earnings of $0.86 a share on Oct 1, 2026, beating the $0.76 consensus estimate by 13.8%. Revenue was $2.0B against a $2.0B estimate.
McCormick & Company delivered a stronger-than-expected third quarter for fiscal 2026, with adjusted EPS of $0.86 beating the $0.76 consensus estimate by 13.77%, even as GAAP earnings fell sharply to $0.36 from $0.84 a year ago due to $0.50 per share in special charges, including a $43.10 million noncash impairment tied to the wind-down of a development-stage pepper sourcing project in Malaysia. Revenue of $2.02 billion topped estimates of $1.98 billion by 2.33%, rising 17.4% year over year, with the January 2026 closing of the McCormick de Mexico acquisition serving as the primary engine, contributing 14.6 percentage points of that growth on its own. Organic sales added a further 1.9%, led by pricing gains and particularly strong 8.3% organic growth in Asia-Pacific Flavor Solutions. Adjusted gross margin expanded 180 basis points to 39.3%, reflecting the acquisition's contribution alongside cost savings and pricing actions. Management reaffirmed its fiscal 2026 outlook, projecting adjusted EPS of $3.05 to $3.13 and net sales growth of 13% to 17%, while the proposed Unilever Foods combination remains on track for a mid-2027 close.
- McCormick de Mexico acquisition contributed 14.6% to sales growth
- Organic sales growth of 1.9% driven by 2.2% pricing benefit
- Adjusted gross profit margin expanded 180 basis points to 39.3%
- CCI program cost savings offset rising input and freight costs
- Flavor Solutions APAC delivered 8.3% organic sales growth
- Consumer EMEA organic sales growth of 5.0%
“Third quarter results demonstrate the resilience and differentiated performance of our flavor-focused business model in a dynamic operating environment. We delivered strong sales growth, including organic growth across our global flavor portfolio, while expanding our profit margins. Disciplined productivity initiatives helped offset rising input and freight costs, supporting margin expansion and enabling continued investment in our brands to drive long-term profitable growth. Overall, performance reflected solid base business contribution and accretion from the McCormick de Mexico acquisition, where we have substantially completed its integration.”
McCormick CEO, on the earnings call
What Is McCormick's Outlook?
McCormick reaffirmed its fiscal 2026 outlook: net sales growth of 13% to 17% (12% to 16% in constant currency), with organic sales growth of 1% to 3%. McCormick de Mexico acquisition expected to contribute 11% to 13%. Adjusted operating income growth of 16% to 20% (15% to 19% constant currency). Adjusted EPS of $3.05 to $3.13, representing 2% to 5% growth (1% to 4% constant currency). Adjusted gross margin expected to expand 100 to 120 basis points from 2025. Tax rate expected at approximately 24.0% vs. 21.5% in 2025. Foreign currency expected to favorably impact net sales, adjusted operating income, and adjusted EPS each by approximately 1%. The company expects strong cash flow driven by profit and working capital initiatives and anticipates returning a significant portion to shareholders through dividends. The proposed Unilever Foods combination is expected to close by mid-2027, with approximately $600 million in annual run-rate cost synergies and mid- to high-single-digit adjusted EPS accretion within 12 months post-close.
MKC YoY Financials
| Metric | Q3 2026 | Q3 2025 | Year over year |
|---|---|---|---|
| Revenue | $2.0B | $1.7B | +17.4% |
| Gross Profit | $794.9M | $645.1M | +23.2% |
| Operating Income | $217.0M | $288.7M | −24.8% |
| Net Income | $97.6M | $225.5M | −56.7% |
MKC Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.