Revenue
Earnings per share
SJM expects adjusted earnings per share in Q2 2026 to decline approx. 25% YoY. Analysts are predicting EPS of $2.10 for the quarter, which suggests a decrease of nearly 24% from the year-ago period. In Q1 2026, adjusted EPS decreased 22% YoY to $1.90.
Points to note
SJM’s top line expectations for the second quarter include an impact of $50 million related to the divested Voortman business and certain Sweet Baked Snacks value brands. Comparable sales is expected to increase mid-single-digits in Q2, reflecting an increase in net price realization partly offset by unfavorable volume/mix. The sales guidance also reflects a $15 million decline in contract manufacturing sales related to the divested pet food brands.
The decrease in adjusted EPS in Q2 is expected to be driven by a decrease in adjusted gross profit in US Retail Coffee, higher marketing investments, and the impact of divestitures. Adjusted EPS is anticipated to improve sequentially throughout the fiscal year.
SJM is expected to benefit from strength in its US Retail Coffee and Away From Home segments. The coffee segment is expected to benefit from higher pricing even though profits may be pressured by higher commodity costs. The Uncrustables brand is expected to continue its momentum in Frozen Handheld and Spreads along with the Meow-Mix brand in Pet Foods. However, pressures on discretionary income might impact dog snacks and sweet baked goods.
The company is working on product innovation, and it is focusing on high-return products while discontinuing products that are not performing to its expectations. These actions are expected to help reshape the portfolio and drive growth. The effects of these measures are likely to have benefited its performance in Q2 as well.