McCormick & Company, Incorporated Beats EPS and Beats Revenue in Q3 2026

In the third quarter of 2026, McCormick & Company reported a notable increase in net sales, which rose by $299.9 million or 17.4% compared to the same quarter last year. This growth was bolstered by a 0.9% favorable impact from currency fluctuations, while organic sales growth stood at 1.9%. However, the company faced a significant decline in earnings per share (EPS), which fell to $0.36, down 57.1% from $0.84 in the prior year.

Overall, this quarter presents a mixed bag for shareholders. While the revenue growth is a positive indicator of demand and market presence, the sharp decline in EPS raises concerns about profitability and cost management. The substantial drop in net income attributable to McCormick, which decreased by 56.7% to $97.6 million, suggests that the company is grappling with rising costs and integration expenses related to its recent acquisition of McCormick de Mexico.

Key Financial Metrics:

• Net Sales: $2,024.8 million, up 17.4% YoY
• Organic Sales Growth: 1.9%
• Gross Profit Margin: 39.3%, expanded by 190 basis points YoY
• Operating Income: $217 million, down 24.8% YoY
• Adjusted Operating Income: $359 million, up 22.1% YoY
• Earnings Per Share (EPS): $0.36, down 57.1% YoY
• Adjusted EPS: $0.86, up 1.2% YoY

Dividend and Share Buyback:

McCormick declared a cash dividend of $0.48 per share, an increase from $0.45 in the same quarter last year. This reflects the company's commitment to returning value to shareholders despite the challenges faced in profitability.

Guidance and Future Outlook:

McCormick reaffirmed its fiscal 2026 outlook, projecting net sales growth of 13% to 17% and adjusted EPS between $3.05 to $3.13. The company anticipates continued contributions from the McCormick de Mexico acquisition, which is expected to enhance both sales and operational efficiencies.

Investors should keep an eye on the integration of McCormick de Mexico and the anticipated benefits from the proposed combination with Unilever Foods, which is expected to close by mid-2027. The integration planning is reportedly on track, and McCormick aims to realize approximately $600 million in annual run-rate cost synergies post-close.

Conclusion:

In summary, while McCormick's revenue growth is commendable, the significant decline in EPS and net income raises red flags regarding cost management and operational efficiency. The company's ability to navigate these challenges while executing its strategic initiatives will be crucial for maintaining shareholder confidence. Investors should monitor the upcoming quarters closely, particularly the integration of McCormick de Mexico and the progress of the Unilever Foods combination, as these factors will likely influence future performance and stock valuation.

Here are the extracted tables from the press release:

Consolidated Income Statement (in millions except per share data)

Note: All amounts are in millions.

Consolidated Balance Sheet (in millions)

Note: All amounts are in millions.

Quarterly Earnings — Revenue vs. Estimate

Revenue vs. Estimate — 5 Quarters

EPS vs. Estimate — 5 Quarters

Analyst Ratings & Price Targets

Wall Street analysts have shown mixed sentiment toward McCormick & Company (MKC) over the past year, with recent downgrades tempering earlier optimism. In September 2026, TD Cowen lowered its rating from Buy to Hold with a $55 price target, signaling caution. Earlier in April 2026, BTIG Research initiated coverage with a Neutral rating, while Deutsche Bank upgraded MKC from Hold to Buy in December 2025 with a $75 target. JP Morgan also raised its stance in August 2025, moving from Neutral to Overweight with an $83 target, matching UBS’s initiation at Neutral the same year. However, Argus downgraded MKC from Buy to Hold in March 2025. The consensus price target implies limited upside from current levels, reflecting concerns over near-term growth but acknowledging long-term potential. Analysts remain divided, with recent downgrades suggesting muted near-term expectations.

Technical Analysis — 90-Day Price Chart

McCormick & Company (MKC) is currently trading at $45.73, well below its key moving averages—$49.57 (SMA20), $51.82 (SMA50), and $52.94 (SMA200)—confirming a sustained downtrend with no bullish crossovers in sight. The RSI(14) of 17.8 signals extreme oversold conditions, suggesting potential for a near-term rebound, though the broader trend remains bearish. Volume at 1.41M shares is significantly below the 20-day average of 3.33M, indicating weak participation in the selloff, which may reduce downside momentum. MKC is trading near the lower end of its 52-week range ($45.12-$56.87), with the $45.12 level acting as critical support; a breach could accelerate selling, while holding may invite consolidation or a technical bounce. Resistance levels are now defined by the descending SMAs, with the SMA20 at $49.57 as the nearest hurdle.