Story perspectives

McCormick Shares Plunge 7% Amid Weak Profit Forecast

1/23/2026

Summary

McCormick Faces Decline

McCormick & Company experienced a 7% decline in shares after providing a weak profit forecast for fiscal 2026, projecting adjusted earnings per share at $3.09, which missed analyst expectations by 3.5%.
The company reported a 2.9% revenue increase to $1.85 billion, but the adjusted profit of $0.86 per share fell short of estimates.
CEO Brendan Foley highlighted flat sales volumes year-on-year and ongoing inflationary pressures, indicating a need for strategic adjustments to enhance sales.
Investors remain cautious, with McCormick's stock trading 28.1% below its 52-week high.

Summary

McCormick Adjusts Earnings

McCormick & Company projects fiscal 2026 adjusted earnings per share of $3.09, below analyst expectations.
McCormick reports revenue of $1.85 billion, up 2.9 percent, with flat sales volumes year over year.
Foley notes inflationary pressures affecting consumer choices.
Service Corporation International reports stable performance in its funeral segment despite a 3.5% decline in core services.
Cemetery revenues rise nearly 7% due to increased preneed sales.

History

Historical Context

The 2008 global financial crisis triggered a severe economic downturn, leading to a 4.8% decline in U.S. GDP in the first quarter of 2020, the steepest contraction since the Great Recession. Companies like McCormick & Company faced inflationary pressures, reporting a 2.9% revenue increase to $1.85 billion, yet struggled with profitability, highlighting the ongoing challenges in adapting to economic instability.

1 of 3

McCormick Faces Decline

McCormick & Company experienced a 7% decline in shares after providing a weak profit forecast for fiscal 2026, projecting adjusted earnings per share at $3.09, which missed analyst expectations by 3.5%.
The company reported a 2.9% revenue increase to $1.85 billion, but the adjusted profit of $0.86 per share fell short of estimates.
CEO Brendan Foley highlighted flat sales volumes year-on-year and ongoing inflationary pressures, indicating a need for strategic adjustments to enhance sales.
Investors remain cautious, with McCormick's stock trading 28.1% below its 52-week high.

1 / 3