Fiscal Year 2026 Financial Outlook
McCormick's fiscal 2026 outlook continues to reflect the Company's prioritized investments in key categories to sustain its volume trends and drive long-term profitable growth while appreciating the uncertainty of the consumer and macro environment, including global trade policies and the conflict in the Middle East. The Company's CCI program is continuing to fuel growth investments while also driving operating margin expansion. Lastly, the outlook reflects meaningful contributions from the acquisition of a controlling interest in McCormick de Mexico, which closed on January 2, 2026.
Current Guide(1) June 2026 | ||
| Reported | Constant Currency | |
| Net sales growth | 13% to 17% | 12% to 16% |
| Contribution from acquisition of McCormick de Mexico | 11% to 13% | 11%to 13% |
| Organic sales growth(2) | --- | 1% to 3% |
| Adjusted operating income | 16% to 20% | 15% to 19% |
| Adjusted Earnings per share (EPS) | $3.05 to $3.13 2% to 5% | 1% to 4% |
| (1) | Amounts are rounded with percentages calculated from the underlying amounts |
| (2) | Organic sales growth is defined as the impact of volume/mix and price and excludes the impact of acquisitions or divestitures, as applicable, and foreign currency. |
Current Guide - Expectations
Net Sales:
- Sustained total volume growth and increased pricing benefits relative to the prior year.
Adjusted Operating Income:
- Adjusted gross margin is now expected to expand by 100 to 120 basis points from 2025. Favorable impacts from organic sales growth, McCormick de Mexico accretion, and the Company's CCI program.
- The benefit of the IEEPA tariff refund will be offset with increased inflationary costs, including costs related to the Middle East conflict, as well as continued investments in business growth.
- SG&A expenses impacted by cost headwinds including digital transformation and build back of incentive compensation, as well as growth investments. In addition, SG&A is expected to benefit from the Company's CCI program, inclusive of streamlining initiatives.
Adjusted Earnings per Share:
- Adjusted operating income growth partially offset by:
- Tax rate of approximately 24.0% vs. 21.5% in 2025.
- Higher net interest expense, primarily associated with the McCormick de Mexico transaction.
- Income from unconsolidated operations no longer reflects ownership interest in McCormick de Mexico subsequent to the January 2026 acquisition.
- The acquisition of the additional ownership interest resulted in the consolidation of McCormick de Mexico's financial results in the Company's financial statements from the date of acquisition. Income attributable to noncontrolling interest reflects elimination of the 25% minority interest in McCormick de Mexico Net Income attributable to Grupo Herdez.
The Company expects foreign currency rates to favorably impact net sales by 1%, adjusted operating income by 1%, and adjusted earnings per share by 1%.
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