McCormick & Company, Incorporated (MKC) Q3 FY2026 earnings

Reported results

• Net sales increased 17.4% to $2,024.8 million in Q3 2026 versus $1,724.9 million in Q3 2025, with 1.9% organic sales growth and 0.9% favorable currency impact.
• Gross profit margin expanded 190 basis points to 39.3% in Q3 2026; adjusted gross profit margin expanded 180 basis points to 39.3%.
• Operating income was $217.0 million in Q3 2026 versus $288.7 million in Q3 2025; adjusted operating income was $358.5 million versus $293.6 million in the year-ago period, an increase of 22.1%.
• Earnings per share (diluted) was $0.36 in Q3 2026 versus $0.84 in Q3 2025; adjusted earnings per share (diluted) was $0.86 versus $0.85 in the year-ago period.
• For fiscal 2026, the company reaffirmed net sales growth guidance of 13% to 17% (12% to 16% constant currency) with organic sales growth of 1% to 3%, adjusted operating income growth of 16% to 20%, and adjusted EPS of $3.05 to $3.13.

Guidance

• Fiscal 2026 net sales growth: 13% to 17% reported, 12% to 16% constant currency
• Fiscal 2026 contribution from McCormick de Mexico acquisition: 11% to 13%
• Fiscal 2026 organic sales growth: 1% to 3%
• Fiscal 2026 adjusted operating income growth: 16% to 20% reported, 15% to 19% constant currency
• Fiscal 2026 adjusted earnings per share (diluted): $3.05 to $3.13, representing 2% to 5% growth reported and 1% to 4% constant currency

Notes

Special charges in Q3 2026 of $141.5 million ($0.50 per share impact) include transaction and integration costs and a non-cash impairment charge of approximately $43.1 million related to a decision to cease operations of a pepper sourcing project in Malaysia. The company completed acquisition of an additional 25% ownership interest in McCormick de Mexico on January 2, 2026, increasing ownership to 75%. Nine-month results include a gain on remeasurement of previously held equity interest of $866.8 million ($3.22 per share). Company is advancing pending combination with Unilever Foods expected to close by mid-2027.

Price and volatility reaction

The stock moved -4.9% on the print. No front-expiry chain was on file, so there is no straddle expected move. 30-day ATM implied volatility moved -7.1 vol points across the event (constant-maturity series — not the front-week crush).

Source

The figures above come from the earnings release the company filed with the SEC on 2026-10-01 (8-K, Item 2.02). Read the original filing on sec.gov.