Shares of The J.M. Smucker Co. (NYSE: SJM) jumped over 8% on Thursday after the company delivered better-than-expected earnings results for the third quarter of 2026. Revenue and earnings both beat estimates although the bottom line saw a decline from the previous year. SJM updated its sales outlook for the full year of 2026 while maintaining its earnings guidance.
Results beat estimates
J.M. Smucker’s net sales increased 7% year-over-year to $2.34 billion in the third quarter of 2026, beating estimates of $2.32 billion. Comparable sales grew 8%. Adjusted earnings per share declined 9% to $2.38, but surpassed projections of $2.26.
Also Read: Key highlights from J.M. Smucker’s (SJM) Q3 2026 earnings results
Higher prices drive coffee sales
J.M. Smucker saw sales growth across most of its segments in the third quarter, led by US Retail Coffee, which grew 23%. This growth was driven mainly by price increases taken across the coffee portfolio to offset green coffee costs. Volume/mix hurt sales by 1 percentage point, with decreases in the Dunkin and Folgers brands partly offset by an increase in the Café Bustelo brand. Café Bustelo recorded a 46% increase in sales in the quarter.
Sales in the US Retail Frozen Handheld and Spreads segment rose 2%, helped by higher pricing for Uncrustables sandwiches. Uncrustables saw sales growth of 10% at the total company level in Q3. SJM sees significant opportunity to expand the brand’s household penetration, which currently stands at 26%.
Sales in the Pet Foods and Sweet Baked Snacks segments were down 1% and 19% respectively, in Q3. In Pet Foods, declines in dog snacks were partly offset by growth in cat food. In Sweet Baked Snacks, results were impacted by decreases in snack cakes, donuts, and breakfast. Sales increased 12% in the International and Away From Home segment.
Updated outlook
SJM updated its sales outlook for fiscal year 2026 to reflect the impact of a recent fire at its Kansas facility, which is expected to lower sales by $25 million in the fourth quarter. Net sales is now expected to increase 3.5-4.0% versus the earlier projection of 3.5-4.5%.
Comparable sales is expected to increase 5.0-5.5%, reflecting higher pricing across the coffee portfolio and volume/mix growth for brands like Uncrustables, Café Bustelo and Meow-Mix. SJM maintained its adjusted EPS guidance of $8.75-9.25 for the year.