EarningsQ3 2026 Earnings Report
MX:MKC Q3 2026 EPS Results
Actual EPS$15.73
Consensus EPS$13.81
Beat/MissBeat by +$1.92
One Year Ago EPS$15.55
MX:MKC Q3 2026 Revenue Results
Actual Revenue$37.04B
Expected Revenue$36.15B
Beat/MissBeat by +$890.29M
YoY Revenue Growth+17.39%
Earnings Announcement Details
QuarterQ3 2026
Date10/01/2026
TimeBefore Open
Conference CallThursday, October 1, 2026
MX:MKC Upcoming Earnings
McCormick & Company's next earnings date is estimated for January 28, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:MKC Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was positive overall. Strong sales growth, margin expansion, operating income growth, cash generation, share gains, regional momentum, productivity savings, maintained 2026 guidance and progress on the Unilever Foods transaction significantly outweighed the stated challenges. The main pressures were weaker Consumer Americas volumes, slower recipe mix recovery, soft QSR and CPG demand, higher inflation and freight costs, a potential fourth-quarter packaging constraint, and a higher tax rate.Company Guidance
Strong Third-Quarter Sales Growth
Total sales grew 17% in constant currency, including 2% organic growth, with the remaining growth driven by the acquisition contribution from McCormick de Mexico.
Adjusted Operating Income and Margin Expansion
Adjusted operating income increased 22%, or 21% in constant currency. Adjusted gross profit margin expanded 180 basis points, supported by McCormick de Mexico accretion, pricing and Comprehensive Continuous Improvement savings, partially offset by increased freight costs.
Consumer Segment Growth and Regional Momentum
Consumer constant-currency sales increased 24%, including 1% organic growth. Consumer organic sales grew 5% in EMEA, driven by 2% volume growth and 3% pricing, and increased 4% in Asia Pacific, driven primarily by volume and the continued gradual recovery in China.
Sustained EMEA Volume Growth
Consumer EMEA delivered volume growth for the 11th consecutive quarter, with organic sales growth supported by both volume and targeted pricing actions.
Flavor Solutions Organic Growth
Flavor Solutions constant-currency sales grew 6%, including 3% organic growth driven by price and volume. Adjusted operating income increased 18%, or 16% in constant currency, while adjusted operating margin expanded 120 basis points.
Asia Pacific Flavor Solutions Strength
Flavor Solutions organic sales in Asia Pacific increased 8%, driven by strong volume growth of 10% from new product innovation and limited time offers with QSR customers in China and Southeast Asia.
Brand and Market Share Gains
The company reported unit or volume share gains in herbs, spices and seasonings in Canada, France, Poland and China; recipe mixes in the U.K. and Australia; mustard in the U.S., Poland and the U.K.; and hot sauce in the U.S., Australia and the U.K. In the U.S., hot sauce delivered dollar and unit share gains for the fourth consecutive quarter.
International and McCormick de Mexico Performance
China retail performance was strong, supported by DaQiao through expanded distribution, innovation and brand marketing investments. McCormick de Mexico delivered robust volume-led quarterly growth, fueled by broad-based strength in mayonnaise and herbs and spices, and management said accretion across all lines of the P&L was coming through in 2026.
Flavor Solutions Innovation Pipeline
Customer innovation activity supported sales growth across large CPGs, private label and high-growth innovators, with opportunities in functional beverages, supplements, hydration, better-for-you snacks, premiumization and customer diversification.
Branded Foodservice Momentum
Branded foodservice continued to show momentum across noncommercial channels, retail foodservice and independent operators. The company delivered front-of-house share gains across Frank's, Cholula, French's and McCormick and expects to sustain year-to-date sales momentum.
Productivity and Resilience
Productivity initiatives and operational discipline helped manage higher input, freight and other ongoing inflationary costs while expanding margins. Management said the CCI program contributed significantly to 2026 gross margin expansion and that the company felt more confident entering 2027 than it did in 2019.
Strong Cash Generation and Capital Allocation
Year-to-date cash flow from operations was approximately $600 million versus $420 million in the prior year, driven primarily by higher profitability and improved working capital. The company returned $387 million through dividends and used $131 million for capital expenditures to expand capacity, advance digital transformation and optimize its cost structure.
Balance Sheet and Deleveraging Progress
The quarter-end leverage ratio was approximately 2.9x, and management expects to continue paying down debt while maintaining a strong investment-grade rating. Following the Unilever Foods close, the company anticipates having $1.5 billion to $2 billion available to pay down debt within the first two years and delever to 3x, with a longer-term target leverage ratio of 2x to 3x.
2026 Outlook Maintained
The company said its 2026 outlook remains broadly consistent with the prior earnings call. Organic growth is expected to be between the low end and midpoint of the guidance range, operating income growth and earnings per share are expected to be at the midpoint of the range, and full-year gross margin expansion is expected at the high end of the 100 to 120 basis-point range.
Unilever Foods Transaction Progress
Integration planning is advancing on schedule. The company has established the planned future leadership team and operating model, mobilized an integration management office and cross-functional teams, put global transition service agreements in place, advanced bottom-up synergy planning and submitted regulatory filings on schedule.
Continued Investment in Growth
The company is continuing to invest in brands, innovation, technology, capabilities, precision marketing, in-store activation, distribution and growth platforms including Finishing Salts and Sugars. Capital expenditures are supporting capacity expansion, digital transformation and cost-structure optimization.
MX:MKC Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed