McCormick Reports 16.7% Revenue Growth to $1.94 Billion in Latest Quarter

McCormick & Company, Incorporated reported significant financial growth in its latest quarterly results, with net sales reaching $1.94 billion for the three months ended May 31, 2026, a 16.7% increase from $1.66 billion in the same period last year. For the first half of the fiscal year, net sales totaled $3.81 billion, up from $3.27 billion, marking a 16.7% increase. The company's gross profit also saw a substantial rise, reaching $778.2 million in the second quarter, compared to $622.8 million in the prior year, resulting in a gross profit margin of 40.2%, up from 37.5%.

The growth in revenue was largely attributed to the acquisition of a 25% additional ownership interest in McCormick de Mexico, which contributed 12.3% to net sales growth. Pricing actions positively impacted sales by 2.2%, while unfavorable volume and product mix had a minor negative effect of 0.5%. The company also benefited from favorable foreign currency fluctuations, which added 2.7% to sales. However, the increase in selling, general, and administrative (SG&A) expenses, which rose to $441.8 million from $364.2 million, was primarily driven by the integration of McCormick de Mexico and increased investments in technology.

Operationally, McCormick's Consumer segment reported net sales of $1.14 billion, a 22.8% increase, while the Flavor Solutions segment saw an 8.9% rise to $793.9 million. The Consumer segment's operating income increased to $216.9 million, reflecting a margin of 19.0%, while the Flavor Solutions segment's operating income rose to $119.5 million, with a margin of 15.1%. The overall operating income for the second quarter was $276.4 million, up from $245.8 million in the previous year.

The company recorded special charges of $60 million in the second quarter, primarily related to transaction and integration expenses associated with the Unilever Foods merger agreement announced on March 31, 2026. This merger is expected to create a global flavor leader and is subject to customary closing conditions, including shareholder approval. McCormick anticipates that the merger will significantly impact its capital structure and liquidity needs, with a one-time cash payment of $15.7 billion to Unilever.

Looking ahead, McCormick projects net sales growth between 13% and 17% for fiscal 2026, driven by the McCormick de Mexico acquisition and favorable foreign currency rates. The company expects adjusted operating income to increase by 16% to 20%, with adjusted diluted earnings per share projected to range from $3.05 to $3.13. McCormick's management remains focused on strategic investments to sustain growth while navigating the uncertainties of the consumer and macroeconomic environment.