McCormick & Company (MKC) was trading around 2.9% higher in premarket Thursday after the spice and flavoring giant posted Q2 results that topped Wall Street expectations on both the top and bottom lines.
Spices and seasonings maker McCormick reported second-quarter profit that beat estimates, buoyed by higher prices and a tariff refund, and reaffirmed its full-year guidance https://t.co/jJWfmZzOyt
— Bloomberg (@business) June 25, 2026
Adjusted EPS came in at $0.80, clearing the $0.70 consensus estimate by a solid margin. Revenue reached $1.94 billion, beating the $1.91 billion estimate and rising 16.7% from the same period a year ago.
Organic sales growth was 1.7%, driven by pricing gains rather than volume. That’s a modest number, but management pointed to it as progress given the current operating environment.
McCormick & Company, Incorporated, MKC
The Consumer segment posted net sales of $1.14 billion, up 22.8% year-over-year. The Flavor Solutions segment brought in $794 million, an 8.9% increase. CEO Brendan Foley credited the Flavor Solutions momentum — specifically gains in Flavors and Branded Foodservice — as a key driver of the quarter.+
Adjusted operating income jumped 30.1% to $336 million, compared to $259 million in Q2 last year. Gross profit margin expanded 270 basis points to 40.2%.
Four factors drove that margin improvement: the McCormick de Mexico acquisition, an IEEPA tariff refund, pricing actions, and cost savings. The Mexico deal is doing a lot of heavy lifting across these results.
McCormick kept its full-year adjusted EPS guidance in place at $3.05–$3.13, with a midpoint of $3.09 — right in line with analyst consensus. Net sales growth is projected at 13%–17% for fiscal 2026, with the McCormick de Mexico acquisition contributing 11%–13% of that figure.
Organic sales growth guidance for the full year stands at 1%–3%. Adjusted gross margin is expected to expand 100–120 basis points over the course of fiscal 2026.
McCormick is continuing integration planning for its proposed combination with Unilever Foods, which was announced in March 2026. No new timeline or details were provided with this earnings release.
The company’s GF Score sits at 75/100, with profitability and growth both rated 8/10. Financial strength is rated 5/10, reflecting an Altman Z-score of 1.88 — sitting in the grey zone, not distressed but not comfortable either.
The current P/E ratio is 7.8x, well below historical averages. The forward P/E is 15.38x, pointing to expected earnings growth ahead.
Insider activity over the past three months includes one buying transaction of 2,000 shares. Over the past year, there have been eight insider sell transactions totaling roughly $17.5 million.
McCormick’s market cap sits at approximately $12.8 billion.
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