McCormick & Company, Incorporated (NYSE:MKC) Posts Earnings Results, Beats Expectations By $0.10 EPS

McCormick & Company, Incorporated (NYSE:MKC) released its quarterly earnings results on Thursday. The company reported $0.86 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.76 by $0.10, Zacks reports. The firm had revenue of $2.02 billion for the quarter, compared to the consensus estimate of $1.98 billion. McCormick & Company, Incorporated had a return on equity of 12.01% and a net margin of 19.39%.The company’s revenue for the quarter was up 17.4% on a year-over-year basis. During the same period last year, the business posted $0.85 EPS. McCormick & Company, Incorporated updated its FY 2026 guidance to 3.050-3.130 EPS.

Here are the key takeaways from McCormick & Company, Incorporated’s conference call:

• Third-quarter sales rose 17% in constant currency, including 2% organic growth and a contribution from McCormick de Mexico. Adjusted operating income increased 21% in constant currency, supported by margin expansion, pricing and productivity savings.
• McCormick de Mexico delivered robust, volume-led growth in mayonnaise and herbs and spices, while consumer momentum remained strong in EMEA and Asia Pacific. The company also reported market-share gains in hot sauce, mustard and selected international categories.
• Consumer Americas remains pressured by value-conscious shoppers, weaker category consumption and underperformance in recipe mixes and parts of herbs, spices and seasonings. A packaging-component supply constraint could reduce fourth-quarter company volume growth by up to one percentage point, while soft QSR and CPG demand is expected to persist.
• McCormick maintained its 2026 outlook, expecting organic growth between the low end and midpoint of its range, operating income and EPS around the midpoint, and gross-margin expansion at the high end of its 100–120 basis-point target. However, inflation is now expected at 6%–7%, with fourth-quarter margin compression from higher commodity and freight costs and increased brand investment.
• Integration planning for the proposed Unilever Foods combination is reportedly on schedule, with leadership, operating-model, regulatory and synergy planning progressing. Management remains confident in the transaction’s EPS-accretion and deleveraging potential, including $1.5 billion–$2 billion of anticipated debt repayment capacity in the first two years after closing.

McCormick & Company, Incorporated Stock Up 1.0%

NYSE:MKC opened at $44.60 on Friday. McCormick & Company, Incorporated has a 52-week low of $43.25 and a 52-week high of $72.41. The stock’s fifty day moving average price is $51.73 and its two-hundred day moving average price is $50.74. The company has a debt-to-equity ratio of 0.38, a quick ratio of 0.39 and a current ratio of 0.66. The company has a market cap of $11.99 billion, a price-to-earnings ratio of 8.07, a P/E/G ratio of 1.78 and a beta of 0.65.

McCormick & Company, Incorporated Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, October 26th. Shareholders of record on Tuesday, October 13th will be paid a dividend of $0.48 per share. This represents a $1.92 annualized dividend and a yield of 4.3%. The ex-dividend date of this dividend is Tuesday, October 13th. McCormick & Company, Incorporated’s dividend payout ratio is currently 31.95%.

Insider Transactions at McCormick & Company, Incorporated

In related news, major shareholder Lawrence Kurzius sold 205,538 shares of the business’s stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $52.69, for a total transaction of $10,829,797.22. Following the transaction, the insider directly owned 296,992 shares of the company’s stock, valued at approximately $15,648,508.48. The trade was a 40.90% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 10.60% of the company’s stock.

McCormick & Company, Incorporated News Roundup

Here are the key news stories impacting McCormick & Company, Incorporated this week:

• Positive Sentiment: McCormick reported third-quarter adjusted EPS of $0.86, surpassing the $0.76 analyst consensus, while revenue rose 17.4% year over year to $2.02 billion versus expectations of $1.98 billion. Margin expansion, organic growth and contributions from the McCormick de Mexico acquisition supported the results. McCormick Reports Solid Third Quarter Performance and Reaffirms 2026 Outlook
• Positive Sentiment: The company outlined a plan to repay $1.5 billion to $2 billion of debt within two years and is targeting 100 to 120 basis points of gross-margin expansion in 2026. Its valuation near multi-year lows and dividend yield above 4% may also appeal to income-oriented investors. McCormick Debt Paydown and Margin Plan
• Neutral Sentiment: McCormick reaffirmed fiscal 2026 guidance of $3.05 to $3.13 in EPS and $7.7 billion to $8.0 billion in revenue, broadly consistent with Wall Street expectations. McCormick Reaffirms 2026 Guidance
• Negative Sentiment: Reported GAAP net income fell sharply to $97.6 million, or $0.36 per share, from $225.5 million, or $0.84 per share, a year earlier, reflecting special charges related to integration and cost actions. Organic sales growth was only about 1.9%, leaving much of the headline growth dependent on acquisitions. McCormick Posts Lower Profit on Higher Sales
• Negative Sentiment: Analysts lowered their targets: Barclays to $47 with an equal-weight rating, UBS to $48 with a neutral rating, TD Cowen to $48 with a hold rating, and Stifel to $48 with a hold rating. BNP Paribas Exane cut its target to $65 but retained an outperform rating. These revisions signal continued concerns about organic growth, execution and near-term earnings momentum.

Wall Street Analysts Forecast Growth

Several equities research analysts have weighed in on MKC shares. BNP Paribas Exane lowered their price target on McCormick & Company, Incorporated from $75.00 to $65.00 and set an “outperform” rating for the company in a report on Friday. Sanford C. Bernstein reaffirmed an “outperform” rating and set a $59.00 price objective on shares of McCormick & Company, Incorporated in a research note on Friday. Weiss Ratings raised shares of McCormick & Company, Incorporated from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Wednesday, August 5th. Stifel Nicolaus decreased their target price on McCormick & Company, Incorporated from $55.00 to $48.00 and set a “hold” rating for the company in a research note on Friday. Finally, Deutsche Bank Aktiengesellschaft dropped their price target on shares of McCormick & Company, Incorporated from $60.00 to $59.00 and set a “buy” rating on the stock in a research note on Monday, September 21st. Five analysts have rated the stock with a Buy rating and eight have given a Hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $55.30.

McCormick & Company, Incorporated Company Profile

McCormick & Company, Incorporated is a global producer and marketer of spices, herbs, seasonings, condiments, sauces and other flavor products. The company sells branded products to consumers through grocery stores, e-commerce channels and other retail outlets, while also supplying customized flavor solutions, ingredients and seasonings to food manufacturers, restaurants and foodservice operators.

Its portfolio includes the McCormick, French’s, Frank’s RedHot, Lawry’s, OLD BAY, Zatarain’s, Grill Mates and Cholula brands, among others.