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Get filing alertsMcCormick reports Q2 2026 earnings, reaffirms outlook, updates Unilever Foods integration
Filed June 25, 2026 · Period ending June 25, 2026 · ~1 min read
Key Changes
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Q2 net sales rose 16.7% (12% from McCormick de Mexico acquisition, 2.7% currency, 1.7% organic); adjusted EPS increased 15.9% to $0.80 vs. $0.69 prior year, driven by 270 bps gross margin expansion including $28M IEEPA tariff refund.
Item 2.02 — Results of Operations and Financial Condition verify on EDGAR → -
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Reaffirmed FY2026 guidance: 13–17% sales growth, 16–20% adjusted operating income growth, adjusted EPS $3.05–$3.13 (2–5% growth); raised adjusted gross margin expansion outlook to 100–120 bps from prior guidance.
Exhibit 99.1 view on EDGAR → -
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Unilever Foods integration on track; expects to announce European secondary listing location by end July 2026 and provide operating model, synergy details by end September 2026; transaction targets mid-to-high-single-digit EPS accretion Year 1, mid-to-high-teens Year 3.
Exhibit 99.1 view on EDGAR → -
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McCormick de Mexico acquisition (closed Jan 2, 2026) increased ownership to 75%, triggered consolidation, and generated $866.8M remeasurement gain on previously held 50% equity stake; contributed 12% to Q2 sales growth.
Exhibit 99.1 view on EDGAR → -
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Received $28M IEEPA tariff refund reversing prior-period costs, contributing 140 bps to Q2 gross margin expansion; underlying margin expanded 130 bps from pricing, cost savings, and acquisition benefits, partially offset by commodity inflation.
Exhibit 99.1 view on EDGAR →
Summary
McCormick reported second quarter fiscal 2026 results showing 16.7% net sales growth and 15.9% adjusted EPS growth to $0.80, driven primarily by the McCormick de Mexico acquisition (12% contribution), favorable currency (2.7%), and organic growth of 1.7%.
Adjusted operating income rose 30% to $336 million, benefiting from 270 basis points of gross margin expansion that included a one-time $28 million IEEPA tariff refund. Management reported strong progress on integration planning and expects to announce a European secondary listing location by end of July 2026 and provide detailed operating model and synergy information by end of September 2026. The transaction is projected to deliver mid-to-high-single-digit adjusted EPS accretion in Year 1 and mid-to-high-teens accretion by Year 3, supported by approximately $600 million in annual run-rate cost synergies. The McCormick de Mexico acquisition, completed January 2, 2026, increased ownership to 75% and generated an $866.8 million remeasurement gain on the previously held equity stake.
Section-by-Section Diff
Event · Item 2.02 — Results of Operations and Financial Condition
McCormick reported Q2 FY2026 earnings and reaffirmed full-year 2026 outlook in a press release and analyst call.
Added in current filing · verify on EDGAR →
On June 25, 2026 the Registrant issued a press release and held a conference call with analysts to report on the results of operations for the second quarter for fiscal year 2026, which ended May 31, 2026.
McCormick disclosed second quarter fiscal 2026 results ending May 31, 2026, through a press release and analyst conference call. The company reaffirmed its full-year 2026 outlook, indicating management confidence in meeting previously stated guidance.
Added in current filing · verify on EDGAR →
Furnished with this Form 8-K as Exhibit 99.1 is a copy of the press release labeled "McCormick Reports Strong Second Quarter Performance and Reaffirms 2026 Outlook," which includes an unaudited Consolidated Income Statement for the six months ended May 31, 2026, an unaudited Consolidated Balance Sheet of the Registrant as of May 31, 2026, and an unaudited Consolidated Cash Flow Statement for the six months ended May 31, 2026.
The press release characterized the quarter as showing strong performance and included unaudited financial statements covering the six-month period ended May 31, 2026. The statements provide income statement, balance sheet, and cash flow data for investor review.
Event · Exhibit 99.1
McCormick reported Q2 2026 earnings, reaffirmed FY2026 outlook, and provided updates on the pending Unilever Foods combination.
Added in current filing · view on EDGAR →
Net Sales increased 16.7% in the second quarter and included a 2.7% favorable impact from currency. Organic sales growth was 1.7%. • Operating income was $276 million in the second quarter compared to $246 million in the year-ago period. Adjusted operating income was $336 million compared to $259 million in the year-ago period. • Earnings per share was $0.56 in the second quarter as compared to $0.65 in the year-ago period. Adjusted earnings per share was $0.80 as compared to $0.69 in the year-ago period.
McCormick reported second quarter net sales growth of 16.7%, driven primarily by the McCormick de Mexico acquisition (12% contribution) and favorable currency (2.7%), with organic growth of 1.7%. Adjusted EPS increased 15.9% to $0.80 from $0.69, while GAAP EPS declined to $0.56 from $0.65 due to special charges. Adjusted operating income rose 30% to $336 million, benefiting from gross margin expansion of 270 basis points, which included a 140 basis point benefit from an IEEPA tariff refund of $28 million.
Added in current filing · view on EDGAR →
For fiscal year 2026, McCormick reaffirmed its sales growth, adjusted operating income and adjusted earnings per share outlook. ... Net sales growth 13% to 17% ... Adjusted operating income 16% to 20% ... Adjusted Earnings per share (EPS) $3.05 to $3.13 2% to 5%
McCormick reaffirmed its full-year 2026 guidance, projecting net sales growth of 13% to 17% (including 11% to 13% from the McCormick de Mexico acquisition and 1% to 3% organic growth), adjusted operating income growth of 16% to 20%, and adjusted EPS of $3.05 to $3.13 (2% to 5% growth). The company now expects adjusted gross margin expansion of 100 to 120 basis points, up from prior guidance.
Added in current filing · view on EDGAR →
McCormick is making strong progress on integration planning for the proposed Unilever Foods combination and remains confident in delivering the expected strategic and financial benefits, including significant earnings per share accretion. ... The Company expects to reach several key transaction milestones in the coming months. It expects to announce the location of a secondary listing on a European exchange by the end of July 2026. By the end of September 2026, the Company expects to share further detail on the operating model, cost and growth synergies, and the scope of the Transition Services Agreement (TSA).
The transaction is expected to deliver mid- to high-single-digit adjusted EPS accretion in the first twelve months and mid- to high-teens accretion in Year 3, with approximately $600 million in annual run-rate cost synergies. Key milestones include announcing a European secondary listing location by end of July 2026 and providing operating model and synergy details by end of September 2026.
Added in current filing · view on EDGAR →
The IEEPA tariff refund reduced costs of goods sold by $28 million, reversing IEEPA tariff costs the business absorbed in prior periods. For the second quarter of 2026, the refund contributed approximately 140 basis points to gross profit margin expansion for the second quarter. Underlying gross profit margin expansion was 130 basis points for the quarter.
McCormick received a $28 million refund of IEEPA tariff costs previously absorbed, which reduced cost of goods sold and contributed 140 basis points to the 270 basis point gross margin expansion in Q2 2026. Excluding this one-time benefit, underlying gross margin expanded 130 basis points, reflecting pricing actions, cost savings from the CCI program, and acquisition benefits, partially offset by commodity inflation and Middle East conflict-related costs.
Added in current filing · view on EDGAR →
On January 2, 2026, we completed the acquisition of an additional 25% ownership interest in McCormick de Mexico which increased our ownership to a 75% controlling interest. Prior to the acquisition of the additional ownership interest, we accounted for our 50% ownership interest as an equity method investment. The acquisition of the additional ownership interest resulted in the consolidation of McCormick de Mexico's financial results. As a result of the consolidation, the carrying value of our previously held 50% ownership interest was remeasured to fair value resulting in a gain.
McCormick completed the acquisition of an additional 25% stake in McCormick de Mexico on January 2, 2026, increasing its ownership to 75% and triggering consolidation of the business. The remeasurement of the previously held 50% equity interest to fair value resulted in a gain of $866.8 million recorded in income from unconsolidated operations in the six months ended May 31, 2026. The acquisition contributed 12% to Q2 net sales growth and is expected to contribute 11% to 13% to full-year 2026 sales growth.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jun 29, 2026 · How we verify