McCormick & Company reported better-than-expected fiscal 2026 third-quarter results, with adjusted earnings of 86 cents per share beating the analyst estimate of 76 cents. Net sales rose 17.4% year over year to $2.02 billion, surpassing the consensus estimate of $1.98 billion.

The company reaffirmed its fiscal 2026 outlook for net sales growth, adjusted operating income, and adjusted earnings per share. This forecast includes contributions from the acquisition of a controlling interest in McCormick de Mexico, which closed on January 2.

Q3FY26 performance highlights

Organic sales increased by 1.9% during the quarter. The strong top-line growth was driven by solid base business contribution and accretion from the McCormick de Mexico acquisition, where integration has been substantially completed.

Management commentary and market reaction

Brendan M. Foley, Chairman, President, and CEO, stated that the third-quarter results demonstrate the resilience of their flavor-focused business model. He noted that disciplined productivity initiatives helped offset rising input and freight costs, supporting margin expansion and enabling continued investment in brands for long-term profitable growth.

Following the announcement, McCormick shares rose 0.7% to trade at $44.45 on Friday. Despite the beat in quarterly results, several analysts lowered their price targets:

• Stifel analyst Matthew Smith maintained a Hold rating but lowered the price target from $55 to $48.
• TD Cowen analyst Robert Moskow maintained a Hold rating and cut the price target from $55 to $48.

Guidance and analyst reactions

McCormick maintained its full-year guidance, including the previously revised sales range of $7.729 billion to $8.003 billion and adjusted EPS guidance of $3.05 to $3.13. The sales outlook remains below the consensus analyst estimate of $7.896 billion, while the EPS guidance aligns closely with the analyst estimate of $3.09.

What the numbers show

The divergence between the strong Q3 beat and the cautious analyst reaction highlights a focus on forward-looking margin pressures. While Q3 sales grew 17.4% YoY, organic growth was significantly lower at 1.9%, indicating that the majority of the revenue increase was driven by the McCormick de Mexico acquisition rather than core business expansion. Analysts appear to be pricing in the challenge of sustaining this momentum organically, leading to reduced price targets despite the immediate earnings beat.

McCormick & Company (NYSE: MKC) declared a quarterly dividend of $0.48 per share on its common stock. The payout is scheduled for October 26, 2026, to shareholders of record as of October 13, 2026.

This declaration marks the 102nd year of consecutive dividend payments by the global flavor leader. The consistent payout underscores the company's long-term commitment to returning capital to investors.

Dividend details

Company profile

Headquartered in Hunt Valley, Maryland, McCormick operates in two segments: Consumer and Flavor Solutions. The company reports approximately $7 billion in annual sales across 150 countries and territories. Its portfolio includes brands such as McCormick, French's, Frank's RedHot, Stubb's, OLD BAY, Lawry's, Zatarain's, Ducros, Vahiné, Cholula, Schwartz, Kamis, DaQiao, Club House, Aeroplane, Gourmet Garden, FONA, and Giotti.