McCormick & Company, Inc. (MKC); a global leader in flavor, released its financial outlook for fiscal year 2026. The outlook reflects continued investment in core categories to support net sales and volume performance, improve operating margins, and maintain shareholder returns.
Sales Growth Expectations
The company projected net sales growth on both a reported and organic basis for fiscal year 2026. Reported net sales are expected to increase 13% to 17% compared with fiscal 2025. The company attributes a significant portion of this increase to acquisitions, particularly the expanded ownership stake in McCormick de Mexico, which is expected to contribute 11% to 13% of reported sales growth. Organic net sales growth, excluding acquisitions and currency effects, is forecast in the range of 1% to 3%.
The acquisition of a controlling interest in McCormick de Mexico, completed in early January 2026, is part of the company’s broader strategy to enhance growth in key geographic markets. The Mexican venture has historically generated significant annual net sales and is expected to support expansion across Latin America.
Expense and Margin Outlook
McCormick forecast increases in adjusted operating income for fiscal year 2026. Adjusted operating income growth is expected to be 16% to 20% on a reported basis and 15% to 19% in constant currency terms. These increases reflect anticipated operating leverage and contributions from McCormick de Mexico as well as initiatives to manage SG&A expenses through cost-saving programs.
The company emphasized continued investment in core categories and productivity initiatives. Cost savings from McCormick’s Comprehensive Continuous Improvement (CCI) program are expected to contribute to margin expansion. The guidance assumes ongoing investments in brand marketing and technology aimed at supporting long-term growth.
McCormick also expects gross profit and operating margins to recover gradually. Fiscal 2025 results included margin compression due to higher commodity costs, tariffs, and capacity expansion costs. These factors are anticipated to moderate in 2026 as operational efficiencies are realized.
Earnings Per Share (EPS)
For fiscal year 2026, McCormick projected adjusted earnings per share (EPS) between $3.05 and $3.13. This guidance reflects the impact of higher sales, margin expansion initiatives, and contributions from strategic investments, including McCormick de Mexico. The guidance excludes the effects of certain special charges. The adjusted EPS outlook incorporates anticipated cost savings from operating efficiencies and strategic growth initiatives.
Cash Flow and Capital Allocation
McCormick expects operating cash flow to support both growth investments and shareholder returns. The company ended fiscal 2025 with strong cash generation, which helped fund the acquisition of a majority interest in McCormick de Mexico. McCormick intends to maintain disciplined capital allocation, balancing investments in strategic initiatives with dividends and other uses of cash.