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McCORMICK REPORTS STRONG SECOND QUARTER PERFORMANCE AND REAFFIRMS 2026 OUTLOOK

McCormick Q2 Strength Supports F2026 Outlook; Unilever Foods Deal Progress

Cholula hot sauce maker McCormick beat Wall Street ​estimates for second-quarter sales ‌and profit o...

McCormick tops quarterly sales and profit estimates

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  <section data-block="information">
    <h3>Information</h3>
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  <section data-block="ai-summary-paragraph">
    <h3>AI Summary</h3>
    <p>McCormick reported a robust second quarter, with net sales rising 16.7% (organic 1.7%) and currency tailwinds of 2.7%. Adjusted operating income surged 30%, aided by the McCormick de Mexico acquisition and tariff refunds that boosted margins. The company reaffirmed its 2026 outlook and highlighted progress on the Unilever Foods merger, including a potential European listing and roughly $600 million in annual run-rate synergies, signaling meaningful upside if the deal closes as planned.</p>
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  <section data-block="ai-summary-bullets">
    <h3>Key Points</h3>
    <ul><li>Q2 net sales up 16.7%; organic growth 1.7%; currency +2.7%.</li><li>Adjusted OI up 30% to $336m; GAAP EPS $0.56, adjusted $0.80.</li><li>McCormick de Mexico closed Jan 2, 2026; sales contribution ~12% in Q2.</li><li>Unilever Foods merger progress; Europe listing planned by July 2026; $600m synergies.</li></ul>
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  <section data-block="companies-mentioned">
    <h3>Companies Mentioned</h3>
    <ul><li><strong>McCormick &amp; Company, Incorporated (MKC)</strong>: Posted strong Q2; reaffirmed 2026 outlook; leading role in Unilever Foods discussion.</li><li><strong>Unilever PLC (UL)</strong>: Partner in the planned Unilever Foods merger; potential accretion and cross-border scale.</li><li><strong>McCormick de Mexico (Private)</strong>: Acquisition closed Jan 2, 2026; private subsidiary now fully consolidated; ~12% Q2 sales impact.</li><li><strong>Grupo Herdez (Private)</strong>: Minority owner (25%) of McCormick de Mexico; may influence minority-interest accounting.</li></ul>
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  <section data-block="category">
    <h3>Earnings</h3>
    <p>Earnings with strategic M&amp;A focus. The release combines quarterly results plus a major transaction (Unilever Foods), illustrating near-term earnings upside and longer-term growth optionality from a scaled flavor platform.</p>
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  <section data-block="market-moving">
    <h3>Market-Moving</h3>
    <ul><li>Q2 beat reinforces margin resilience from tariff refunds and CCI-driven cost savings.</li><li>Unilever Foods merger milestones (Europe listing by July 2026) could unlock accretion.</li><li>McCormick de Mexico adds ~12% sales contribution in Q2, supporting growth.</li><li>Outlook reaffirmed; synergy plan and integration progress support durable upside.</li></ul>
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  <section data-block="key-facts">
    <h3>Key Facts</h3>
    <ul><li>Q2 net sales +16.7%; organic growth +1.7%; currency +2.7%.</li><li>Q2 GAAP EPS $0.56; adjusted EPS $0.80; Q2 operating income $276m; adjusted $336m.</li><li>McCormick de Mexico closed Jan 2, 2026; contributed ~12% to Q2 sales.</li><li>IEEPA tariff refund reduced COGS by $28m; ~140 bps gross margin lift in Q2.</li><li>Fiscal 2026 outlook: net sales up 13–17%; adjusted OI up 16–20%; adjusted EPS up 2–5%.</li></ul>
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  <section data-block="trading-thesis">
    <h3>Trading Thesis</h3>
    <p>MKC likely moves higher in 1–3 quarters as earnings momentum and Unilever Foods deal progress lift the multiple.</p>
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<article>
  <p>HUNT VALLEY, Md., June 25, 2026 /PRNewswire/ -- McCormick & Company, Incorporated (NYSE: MKC), a global leader in flavor, today reported financial results for the second quarter ended May 31, 2026 and reaffirmed its outlook for fiscal 2026.</p>

  <ul>
    <li><strong>Net Sales</strong> increased <strong>16.7%</strong> in the second quarter and included a <strong>2.7%</strong> favorable impact from currency. Organic sales growth was <strong>1.7%</strong>.</li>
    <li><strong>Operating income</strong> was <strong>$276 million</strong> in the second quarter compared to <strong>$246 million</strong> in the year-ago period. <strong>Adjusted operating income</strong> was <strong>$336 million</strong> compared to <strong>$259 million</strong> in the year-ago period.</li>
    <li><strong>Earnings per share</strong> was <strong>$0.56</strong> in the second quarter as compared to <strong>$0.65</strong> in the year-ago period. <strong>Adjusted earnings per share</strong> was <strong>$0.80</strong> as compared to <strong>$0.69</strong> in the year-ago period.</li>
    <li>For <strong>fiscal year 2026</strong>, McCormick reaffirmed its <strong>sales growth</strong>, <strong>adjusted operating income</strong> and <strong>adjusted earnings per share</strong> outlook.</li>
    <li>McCormick is making strong progress on <em>integration planning</em> for the proposed <strong>Unilever Foods</strong> combination and remains confident in delivering the expected strategic and financial benefits, including significant earnings per share accretion.</li>
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  <section>
    <h2>Executive Remarks and Q2 Performance</h2>

    <p><strong>Chairman, President, and CEO's Remarks</strong></p>

    <p>Brendan M. Foley, Chairman, President, and CEO, stated, "Second quarter results demonstrate the continued strength and resilience of our business in a dynamic operating environment. Total organic growth was driven by accelerated momentum in Flavor Solutions, with gains across Flavors and Branded Foodservice customers, highlighting the benefits of our diversified flavor focused portfolio. We also effectively managed elevated inflation and incremental costs related to the Middle East conflict through productivity initiatives and cost savings programs, resulting in underlying margin improvement for the quarter. In addition, our performance was supported by accretion from the McCormick de Mexico acquisition."</p>

    <p>"We are also advancing integration planning for the proposed combination with Unilever Foods. This transformative combination accelerates our growth strategy and reinforces our continued focus on flavor. It creates a diversified flavor leader with a robust growth profile that remains differentiated by its focus on flavoring calories while others compete for them. Our teams are working with focus and discipline to ensure we are well positioned to realize the anticipated strategic and financial benefits after the close."</p>

    <p>"Looking ahead to the rest of the year, we expect to sustain the momentum in Flavor Solutions and increase reinvestment to improve Consumer volume trends and organic sales. Our enhanced margin profile and operational rigor position us well to deliver a virtuous cycle of growth through continued investment in our brands, capabilities, and innovation that drive long-term value creation. Our fundamentals remain strong, supported by our advantaged categories and disciplined execution, giving us confidence in our ability to deliver on our 2026 outlook."</p>

    <p>"Finally, I want to recognize the dedication of our employees. Their continued commitment to serving consumers, customers, and one another reflects the strength of our Power of People culture and supports our sustained performance. I appreciate our teams' focus and collaboration across the business as they advance our priorities, including the ongoing integration planning for the proposed combination with Unilever Foods. Our strong culture will remain our foundation, as we build a future-ready organization to drive our long-term growth."</p>
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  <section>
    <h2>Second Quarter 2026 Results</h2>
    <h3>Sales Metrics</h3>
    <ul>
      <li>Second Quarter 2026 results reflect the metrics above, including net sales growth and margin progress as described in the earnings release.</li>
    </ul>
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  <section>
    <h2>Outlook and Strategic Update</h2>
    <p>McCormick reaffirmed its <strong>2026 outlook</strong> for <strong>sales growth</strong>, <strong>adjusted operating income</strong> and <strong>adjusted earnings per share</strong>. The company also noted progress on the <em>integration planning</em> for the proposed <strong>Unilever Foods</strong> acquisition, emphasizing expected strategic and financial benefits and earnings accretion.</p>
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  <section>
    <h2>Strategic Context and Growth Initiatives</h2>
    <p>McCormick continues to focus on Flavor Solutions and a diversified portfolio to drive <strong>revenue</strong> growth and margin expansion. The leadership underscored ongoing efficiency programs to manage inflation and incremental costs, while pursuing disciplined investment in brands, capabilities, and innovation to support long-term value creation for shareholders of <strong>MKC</strong>.</p>
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  <section>
    <h2>Company Background and About MKC</h2>
    <p>McCormick & Company, Incorporated (MKC) is a global leader in flavor with a focus on enhancing consumer experiences across its diversified product portfolio.</p>
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</article>

McCormick reported a robust second quarter, with net sales rising 16.7% (organic 1.7%) and currency tailwinds of 2.7%. Adjusted operating income surged 30%, aided by the McCormick de Mexico acquisition and tariff refunds that boosted margins. The company reaffirmed its 2026 outlook and highlighted progress on the Unilever Foods merger, including a potential European listing and roughly $600 million in annual run-rate synergies, signaling meaningful upside if the deal closes as planned.

McCORMICK REPORTS STRONG SECOND QUARTER PERFORMANCE AND REAFFIRMS 2026 OUTLOOK

AI Summary

Sentiment Rationale

Trading Thesis

Market-Moving

Key Facts

Companies Mentioned

Earnings

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