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High materiality8/10

Scotts Miracle-Gro raises FY26 EPS guidance amid margin progress

Jul 29, 2026, 6:53 AM EDT1 sourcesAI-analyzed

Why it may matterVerify against the original reporting

The company raised FY26 non-GAAP EPS guidance, improved leverage, and completed Hawthorne divestiture, all supporting margin discipline and potential valuation multiple expansion; positive signals for SMG’s long-run profitability and capital allocation.

AI summary

What happened, with direct paths to the underlying reporting

Scotts Miracle-Gro reported a modest Q3 with net sales of $1.17B and lifted FY2026 non-GAAP diluted EPS guidance to $4.30-$4.45. The company highlighted margin improvements driven by supply-chain automation and AI, plus the completed Hawthorne divestiture, which sharpens focus on core brands and lends to leverage improvement. Bonnie Plants' JV contribution adds to ongoing profitability as SMG executes its SMG 2.0 strategy.

Q3 net sales $1.17B, up 1%; FY26 EPS guidance raised to $4.30-$4.45.
GAAP gross margin 31.2%, non-GAAP 31.3%; freight/commodity costs weigh margins.
Non-GAAP diluted EPS $2.82 for the quarter, up 8% YoY.
Leverage ratio improved to 3.78x; Hawthorne divestiture reduces risk.
Hawthorne sale completed; Bonnie Plants JV supports profitability and SMG 2.0 progress.

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