Analyst Consensus ?
ConsensusHold29 ratings
Bullish1034.5%
Neutral1758.6%
Bearish26.9%
McCormick & Company, Incorporated · MKC · FY2026 Q2 · Calendar Q2 2026
McCormick Beats Q2 on Flavor Solutions Strength and Tariff Refund
McCormick delivered a solid Q2 beat driven by Flavor Solutions volume growth, the Mexico acquisition contribution, and a tariff refund that lifted gross margins by roughly 270 basis points. The Unilever Foods integration is advancing with a dedicated team of over 200 staff and a secondary European listing targeted by July. Management maintained its 2026 outlook and reiterated the mid-single-digit year-one EPS accretion target from the Unilever Foods combination. The primary watch point is soft consumer spices volume, which management is addressing through innovation, precision marketing, and value pricing.
Reported Before market openNYSEConsumer Defensive
$13.70B market cap
100quality score
Earnings scorecard
Reported versus consensus
Reported EPS
$0.80
Consensus $0.69
EPS surprise
+15.6%
Reported versus consensus
Reported revenue
$1.94B
Consensus $1.91B
Revenue surprise
+1.2%
Reported versus consensus
Market reaction
prior-close to event-session close
Stock move
+1.6%
Event window
SPY move
+0.1%
Same window
Abnormal move
+1.4%
Stock minus SPY
Volume
1.7×
Versus trailing sessions
Subsequent drift
+3.3%
Up to 20 sessions
MKCSPY benchmark
Ask FN2 about MKC FY2026 Q2
Transcript, numbers and history already loaded
Why did MKC rise 1.6% after beating EPS estimates in FY2026 Q2?What changed in MKC's guidance and outlook in FY2026 Q2?Give me the bull and bear case for MKC after FY2026 Q2 earnings.
Free account. Your question opens in FN2 with this report's transcript and numbers attached.
Transcript intelligence
What changed
EPS of $0.80 beat the $0.69 consensus estimate by 15.6%. Revenue of $1.94B exceeded the $1.91B estimate by 1.2%. The tariff refund contributed $0.07 per share and is expected to provide a $28 million full-year benefit. First-half operating cash flow surged to $431M, enabling leverage reduction to 2.9x despite $750M in new debt. The stock posted a +1.4% abnormal return on the report date with +3.3% subsequent drift over the following month.
Guidance delta
Management maintained its 2026 outlook. The Unilever Foods combination remains on track for mid-single-digit EPS accretion in year one and mid-teens by year three, consistent with prior-quarter guidance. The $600M annual cost synergy target and $100M marketing reinvestment plan disclosed in Q1 were reiterated. No guidance changes were announced.
Key takeaways
- Q2 sales grew 14% constant currency, with 12% contribution from the Mexico acquisition and organic growth led by Flavor Solutions.
- Gross margin expanded approximately 270 basis points, boosted by a tariff refund worth $0.07 per share ($28M full-year benefit) and disciplined cost programs.
- Unilever Foods integration is progressing with a dedicated office, 200+ staff, and a secondary European listing targeted by July.
- First-half operating cash flow surged to $431M, allowing leverage reduction to 2.9x despite taking on $750M in new debt.
- Consumer spices volume remains soft; management is countering with innovation, precision marketing partnerships, and value pricing.
Management priorities
- Complete the Unilever Foods integration and deliver targeted $600M in annual cost synergies.
- Sustain volume recovery in consumer spices through innovation and precision marketing.
- Expand distribution for high-growth brands like Cholula and Frank's RedHot across geographies.
- Execute the secondary European listing and disclose detailed Unilever Foods operating model by September.
- Continue capex investments in capacity, digital transformation, and cost-structure optimization.
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Try FN2 freeEarnings History
Estimate
Beat
Miss
Match
Analyst 52W Price Targets
$46.8Current
$47Low
$67.94Average
$93High
Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Oct 29, 2026. Not an FN2 forecast.
Firm-level rating actions
FMP grade actions identify the grading firm, not a named analyst.
| Firm | Rating | Prior rating | Action | Date |
|---|---|---|---|---|
| UBS | Neutral | Neutral | Maintain | Oct 2, 2026 |
| TD Cowen | Hold | Hold | Maintain | Oct 2, 2026 |
| Stifel | Hold | Hold | Maintain | Oct 2, 2026 |
| BNP Paribas | Outperform | Outperform | Maintain | Oct 2, 2026 |
| Barclays | Equal Weight | Equal Weight | Maintain | Oct 2, 2026 |
| JP Morgan | Overweight | Overweight | Maintain | Sep 18, 2026 |
| Deutsche Bank | Buy | Buy | Maintain | Jun 26, 2026 |
| Bernstein | Outperform | Outperform | Maintain | Jun 26, 2026 |
| Jefferies | Buy | Buy | Maintain | Apr 1, 2026 |
| Citigroup | Neutral | Neutral | Maintain | Jun 17, 2025 |
| B of A Securities | Buy | Buy | Maintain | Oct 2, 2024 |
| Argus Research | Buy | Hold | Upgrade | Apr 2, 2024 |
| Consumer Edge Research | Equal Weight | Overweight | Downgrade | Jan 22, 2024 |
| Exane BNP Paribas | Outperform | Outperform | Maintain | Nov 15, 2022 |
| Credit Suisse | Neutral | Outperform | Downgrade | Jan 19, 2022 |
| CFRA | Hold | Hold | Maintain | Mar 31, 2020 |
| Goldman Sachs | Sell | Neutral | Downgrade | Dec 10, 2019 |
| Stifel Nicolaus | Hold | Hold | Maintain | Sep 28, 2018 |
| Vertical Research | Hold | Buy | Downgrade | Jun 29, 2018 |
| Vertical Group | Hold | Buy | Downgrade | Jun 29, 2018 |
| Bank of America | Buy | Buy | Maintain | Dec 6, 2016 |
| BB&T Capital | Hold | Buy | Downgrade | Feb 18, 2016 |
| S&P Capital IQ | Sell | Hold | Downgrade | Jan 29, 2014 |
| Wellington Shields | Buy | Buy | Maintain | Sep 27, 2013 |
| Keybanc | Hold | Buy | Downgrade | Apr 22, 2013 |
| Northcoast Research | Neutral | Buy | Downgrade | Apr 1, 2013 |
| Davenport | Neutral | Buy | Downgrade | Jan 10, 2013 |
| Janney Montgomery Scott | Neutral | Buy | Downgrade | Aug 3, 2012 |
| Janney Capital | Neutral | Buy | Downgrade | Aug 3, 2012 |
Named analyst price targets
Upside is calculated against the persisted current price $46.8. FMP does not supply a rating on these named-analyst rows.
| Firm | Analyst | 52W target | Price when posted | Upside | Date |
|---|---|---|---|---|---|
| UBS | Analyst unavailable | $48 | $44.52 | +2.6% | Oct 2, 2026 |
| Deutsche Bank | Analyst unavailable | $57 | $44.55 | +21.8% | Oct 2, 2026 |
| Bernstein | Alexia Howard | $59 | $44.14 | +26.1% | Oct 2, 2026 |
| Stifel Nicolaus | Matthew Smith | $48 | $44.14 | +2.6% | Oct 2, 2026 |
| Barclays | Analyst unavailable | $47 | $44.14 | +0.4% | Oct 2, 2026 |
| Coker Palmer | Thomas Palmer | $62 | $49.34 | +32.5% | Sep 18, 2026 |
| Barclays | Analyst unavailable | $55 | $51.05 | +17.5% | Jun 29, 2026 |
| UBS | Analyst unavailable | $52 | $48.35 | +11.1% | Jun 26, 2026 |
| Bernstein | Alexia Howard | $68 | $48.35 | +45.3% | Jun 26, 2026 |
| Deutsche Bank | Analyst unavailable | $60 | $48.35 | +28.2% | Jun 26, 2026 |
| UBS | Peter Grom | $51 | $46.28 | +9.0% | Jun 2, 2026 |
| Barclays | Andrew Lazar | $67 | $60.79 | +43.2% | Jan 26, 2026 |
| UBS | Bryan Adams | $67 | $60.12 | +43.2% | Jan 23, 2026 |
| Bernstein | Analyst unavailable | $85 | $61.2 | +81.6% | Jan 23, 2026 |
| Coker Palmer | Thomas Palmer | $72 | $61.2 | +53.8% | Jan 23, 2026 |
| Deutsche Bank | Analyst unavailable | $75 | $66.8 | +60.3% | Dec 15, 2025 |
| Bernstein | Alexia Howard | $87 | $66.28 | +85.9% | Dec 11, 2025 |
| Jefferies | Analyst unavailable | $78 | $65.86 | +66.7% | Oct 8, 2025 |
| UBS | Analyst unavailable | $70 | $65.86 | +49.6% | Oct 8, 2025 |
| Bernstein | Alexia Howard | $93 | $65.62 | +98.7% | Oct 8, 2025 |
| Stifel Nicolaus | Analyst unavailable | $71 | $65.62 | +51.7% | Oct 8, 2025 |
| Deutsche Bank | Steve Powers | $71 | $65.62 | +51.7% | Oct 8, 2025 |
| Barclays | Andrew Lazar | $72 | $65.62 | +53.8% | Oct 8, 2025 |
| UBS | Bryan Adams | $71 | $67.16 | +51.7% | Oct 1, 2025 |
| Coker Palmer | Thomas Palmer | $82 | $65.71 | +75.2% | Sep 25, 2025 |
| UBS | Analyst unavailable | $79 | $72.26 | +68.8% | Aug 22, 2025 |
| Coker Palmer | Thomas Palmer | $77 | $72.96 | +64.5% | Jun 17, 2025 |
| Jefferies | Rob Dickerson | $91 | $77.5 | +94.4% | Dec 9, 2024 |
| Jefferies | Rob Dickerson | $85 | $78.86 | +81.6% | Oct 22, 2024 |
| Stifel Nicolaus | Matthew Smith | $85 | $84.09 | +81.6% | Oct 2, 2024 |
| Goldman Sachs | Adam Samuelson | $69 | $84.09 | +47.4% | Oct 1, 2024 |
| Jefferies | Rob Dickerson | $86 | $84.09 | +83.8% | Oct 1, 2024 |
| CFRA | Arun Sundaram | $93 | $82.92 | +98.7% | Oct 1, 2024 |
| Argus Research | John Staszak | $80 | $70.6 | +70.9% | Jun 28, 2024 |
| Deutsche Bank | Steve Powers | $73 | $70.6 | +56.0% | Jun 28, 2024 |
| Coker Palmer | Thomas Palmer | $69 | $69.2 | +47.4% | Jun 12, 2024 |
| Argus Research | John Staszak | $88 | $76.62 | +88.0% | Apr 2, 2024 |
| HSBC | Alejandro Zamacona | $79 | $76.6 | +68.8% | Mar 27, 2024 |
| Stifel Nicolaus | Matthew Smith | $75 | $76.37 | +60.3% | Mar 27, 2024 |
| CFRA | Arun Sundaram | $85 | $77.3 | +81.6% | Mar 26, 2024 |
| Deutsche Bank | Analyst unavailable | $83 | $84.18 | +77.4% | Dec 6, 2022 |
| Barclays | Analyst unavailable | $82 | $81.26 | +75.2% | Sep 12, 2022 |
| Deutsche Bank | Analyst unavailable | $79 | $78.38 | +68.8% | Sep 8, 2022 |
| Deutsche Bank | Steve Powers | $85 | $82.07 | +81.6% | Jul 9, 2022 |
| Deutsche Bank | Analyst unavailable | $91 | $83.01 | +94.4% | Jun 21, 2022 |
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Start freeCompany context
Snapshot as of publicationMcCormick & Company, Incorporated is a global leader in the manufacture, marketing, and distribution of a wide array of flavorful products, including spices, seasoning mixes, and condiments, to the food industry. Its operations are divided into two primary segments: Consumer and Flavor Solutions. The Consumer segment provides an extensive range of items such as spices, herbs, seasonings, sauces, and desserts. These are sold under numerous prominent brands across various regions: McCormick, French's, Frank's RedHot, Lawry's Cholula Hot Sauce, Gourmet Garden, Club House, and OLD BAY in the Americas; Ducros, Schwartz, Kamis, Drogheria & Alimentari, and Vahiné throughout Europe, the Middle East, and Africa (EMEA); McCormick and DaQiao in China; and McCormick, Aeroplane, and Gourmet Garden in Australia.…
Historical context
All MKC earningsConsumer Defensive peers this season
Latest reports in the same sector| Company | Quarter | EPS surprise | Market move | Headline |
|---|---|---|---|---|
| ABEV Ambev S.A. | FY2026 Q3 · Calendar Q4 2026 | — | -4.0% | Ambev Q3: Growth Holds, Digital Platforms Accelerate |
| HSY The Hershey Company | FY2026 Q3 · Calendar Q4 2026 | — | -1.8% | Hershey maintains 2027 growth outlook as innovation expands |
| BG Bunge Global S.A. | FY2026 Q3 · Calendar Q4 2026 | — | -3.1% | Bunge Maintains 2026 EPS Guidance as Projects Advance |
Latest beats and misses
Who reports nextBeat on EPS
- AGIFY2026 Q3 · October 28, 20260.0% EPS-9.0% move
- ARFY2026 Q3 · October 28, 2026+22.3% EPS-2.2% move
- INVHFY2026 Q3 · October 28, 2026+49.5% EPS-0.4% move
- AEMFY2026 Q3 · October 28, 2026+5.7% EPS-3.9% move
- ORLYFY2026 Q3 · October 28, 2026+4.3% EPS-2.7% move
- STRLFY2026 Q3 · October 28, 2026+22.3% EPS-0.4% move
Get the MKC recap when the next report posts
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Sources
- Earnings call transcript and parsed analysis · 2026-06-25T17:16:15.961951+00:00
- FN2 earnings calendar · 2026-07-31T01:23:16.182055+00:00
- Polygon adjusted daily market bars · 2026-07-31T11:22:23.259914+00:00
- Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-07-31T11:22:23.257089+00:00
Methodology
Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.
Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.
Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.
By FN2 Research · Updated · As of 2026-07-31. For educational purposes only; not investment advice.