McCormick tops estimates as home cooking demand stays strong

McCormick & Company, Incorporated's second-quarter revenue climbed to $1.94 billion, topping analyst estimates. Adjusted earnings rose to 80 cents a share, above the 69-cent estimate compiled by LSEG. Shoppers continued to stock spices and seasonings despite economic uncertainty.

The Hunt Valley, Maryland, company’s net sales increased 16.7% from a year earlier, helped by a 2.7% favorable currency impact and 1.7% organic sales growth. Operating income rose to $276 million from $246 million, and adjusted operating income increased to $336 million from $259 million. Reported earnings came in at 56 cents a share, down from 65 cents a year earlier. McCormick reaffirmed its fiscal 2026 outlook for sales growth, adjusted operating income and adjusted earnings.

Chief executive Brendan Foley said the quarter reflected “continued strength and resilience” and pointed to momentum in Flavor Solutions, gains with Flavors and Branded Foodservice customers, productivity initiatives, cost savings and accretion from McCormick de Mexico. McCormick continued managing elevated inflation and incremental costs tied to the Middle East conflict through productivity actions and cost savings programs.

On March 31, the company announced a planned combination with Unilever Foods that would bring most of Unilever’s food portfolio under McCormick’s roof in a deal valued at roughly $45 billion. Under the terms disclosed, McCormick will pay $15.7 billion in cash, Unilever shareholders will own 55.1% of the combined company and Unilever will hold a 9.9% stake. The deal is expected to close in mid-2027, subject to shareholder and regulatory approval.

McCormick said the combination would create a diversified flavor leader with expected sustainable organic sales growth of 3% to 5% after closing. The company will keep its global headquarters in Hunt Valley and add an international headquarters in the Netherlands, while the merger will not include Unilever Foods’ business in India. McCormick said it is making strong progress on integration planning. Shares rose in premarket trading.