McCormick & Co. Inc (Non Voting)
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −0.24%.
Did MKC Beat Earnings? Q4 2025 Results
McCormick delivered a mixed fourth quarter for fiscal 2025, narrowly missing on the bottom line while holding its own on the top line amid persistent cost headwinds. The spice and flavoring giant posted adjusted EPS of $0.86, falling just short of the $0.87 consensus estimate, while revenue of $1.85 billion edged fractionally above expectations and rose 2.9% year over year. The key drag was gross margin, which contracted 130 basis points to 38.9% as higher commodity costs and tariff pressures overwhelmed savings from McCormick's Comprehensive Continuous Improvement program, even as disciplined SG&A management helped cushion the blow. Consumer segment strength, with net sales climbing 3.9% to $1.13 billion, was the clearest bright spot, supported by volume gains and strategic pricing. Short interest in McCormick's shares has since fallen sharply, suggesting some investors see the margin pressure as transitory. Looking ahead, the company projects fiscal 2026 adjusted EPS of $3.05 to $3.13, with reported net sales growth of 13% to 17% largely driven by the consolidation of McCormick de Mexico.
- Volume-led organic growth with share gains across Consumer segment
- Tariff and inflation-related pricing actions contributing to revenue growth
- Comprehensive Continuous Improvement (CCI) program driving cost savings and SG&A reductions
- Lower employee-related benefit expenses reducing SG&A
- Lower interest expense contributing to EPS growth
- Sustained brand marketing investments supporting volume trends
- Expanded distribution and innovation across the portfolio
“McCormick's performance in 2025 demonstrated the strength and resilience of our business. We achieved differentiated, volume-led organic growth and share gains powered by continued investment in our brands, expanded distribution, and innovation across our portfolio. Despite inflationary pressures and rising costs from a shifting global trade environment, we achieved operating profit growth and operating margin expansion while continuing to invest for future growth. Additionally, we generated strong cash flow, strengthened our balance sheet, and advanced our flavor leadership through the McCormick de Mexico transaction.”
McCormick CEO, on the earnings call
Forward Guidance & Outlook
For fiscal year 2026, McCormick expects reported net sales growth of 13% to 17% (12% to 16% on a constant currency basis), with 11% to 13% contribution from the McCormick de Mexico acquisition and organic sales growth of 1% to 3%. Adjusted operating income is expected to grow 16% to 20% (15% to 19% constant currency), with adjusted gross margin expansion reflecting recovery from 2025. Adjusted EPS is projected at $3.05 to $3.13, representing 2% to 5% growth. The company expects a tax rate of approximately 24% (vs. 21.5% in 2025), higher net interest expense primarily from the McCormick de Mexico transaction, and foreign currency 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 of cash flow to shareholders through dividends.
MKC YoY Financials
MKC Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.