Overview
- The company projected fiscal 2026 adjusted earnings of $3.05 to $3.13 per share, a 2%–5% increase that trails the roughly $3.22 LSEG consensus.
- McCormick targeted constant-currency net sales growth of 12%–16%, supported by pricing, volume gains and the McCormick de Mexico acquisition.
- Fourth-quarter adjusted EPS came in at $0.86 versus the $0.88 estimate, with net sales of $1.85 billion roughly in line with expectations.
- CEO Brendan Foley said higher-than-expected commodity inflation and tariff costs compressed Q4 profitability, with gross profit down $2 million and gross margin lower by 130 basis points year over year.
- Management said adjusted EPS growth will be tempered by a higher effective tax rate, increased interest expense tied to the Mexico deal and changes to unconsolidated operations, while Reuters highlighted consumer budget pressure, competition and healthier-eating shifts as demand risks.