Oct 1, 2026 earnings call — Quarter results and acquisition integration
Total sales grew 17% in constant currency, including 2% organic growth and contribution from McCormick de Mexico.
Revenue $2.0B (est $2.0B) · EPS $0.86 (est $0.76)
Key quotes
"With these actions underway, we expect consumption trends to continue improving and strengthen share performance."
"As we previously noted, we have substantially completed the integration of this acquisition."
"I would add that our CCI program has really stepped up over the last couple of years, Max."
Analyst Q&A 9
US consumer volume recovery
Q (Andrew Lazar · Barclays): He asked how successful the third-quarter actions were to improve US consumer volumes and what more is needed in the fourth quarter.
A: Management said they saw improvement in Americas Consumer on shipments and consumption, but some actions were slower to implement and the consumer was more pressured. They will keep using price packs, more targeted media spend, sharper promotions and assortment work to drive further improvement in Q4.
"We definitely saw improvement in our business, especially in the Americas Consumer, not only on shipments, but also consumption for the quarter." — Brendan Foley (CEO·CHAIR)
recipe mixes and packaging problem
Q (Peter Galbo · BofA): He asked for a timeline to recover recipe mixes and more detail on the packaging supplier issue and fixes.
A: Management said recovery for recipe mixes is taking longer than expected and they will focus on Cholula in the Mexican aisle plus restoring core recipe mix velocity via retail media, shelf execution and pricing. On packaging, they said the issue is a specific packaging component affecting Consumer Americas, not raw materials, and they are mitigating with other packaging formats and conversion fixes.
"So as we work through that, and it tends to be -- it's more of an industry issue, it's not just impacting us." — Brendan Foley (CEO·CHAIR)
cost inflation and margins
Q (Thomas Palmer · JPMorgan): He asked whether input cost inflation is a lasting headwind into 2027 or a timing issue, and how Q4 timing affects results.
A: Management said timing shifted some expenses from Q3 into Q4 and they raised full-year inflation expectations, so Q4 will see more cost pressure including freight and packaging. They noted strong CCI performance has driven gross margin expansion in 2026 and they expect CCI to help in 2027, but more headwinds remain and they will give initial 2027 perspective with Q4 results.
"If you take a step back, we came into the year with an expectation of 60 basis points gross margin expansion versus 2025." — Marcos Gabriel (CFO)
Unilever Foods business and TSA plans
Q (Stephen Robert Powers · Deutsche Bank): He asked confidence in Unilever Foods improving before deal close and how TSA scope, duration and cost are shaping up.
A: Management said they cannot fully comment on Unilever Foods operations but expect similar pressures and tactics as seen company-wide and remain confident in the combination's long-term growth potential. On TSAs, they said TSAs will support back office areas for about 2 years with a phased exit and costs are included in the deal model; more details will come in the next few months.
"TSAs are in process, as we spoke before, continue to evolve the detail of the scope of each one." — Marcos Gabriel (CFO)
CPG customer slowdown reasons
Q (Robert Moskow · TD Cowen): He asked what caused slowdown with CPG customers in the US in Q3 and whether reformulations or new products were delayed.
A: Management said the slowdown was mainly an industry-wide acceleration of volume declines and softer QSR traffic, plus softer consumption from CPG customers; they view the cyclospora outbreak as a short-term pressure on QSR traffic. They also said implementation timing with retailers caused some slowness, not distraction from the Unilever integration.
"I think it was more based on overall acceleration of volume declines that we saw in the industry over the course of the third quarter." — Brendan Foley (CEO·CHAIR)
US pricing and assortment moves
Q (Alexia Howard · Bernstein): She asked if US Consumer pricing will turn negative in fiscal 2027 and for examples of portfolio assortment optimization.
A: Management said they do not expect pricing to go negative, though pricing contribution may be smaller year-to-date levels. For assortment optimization, they cited placing top-selling flavors on shelf, using price pack architecture, and launching innovations that replace or add items to improve velocity.
"It certainly will be perhaps less pricing contribution than what we've seen year-to-date, but we don't anticipate it to go negative." — Brendan Foley (CEO·CHAIR)
consumer demand and channel distribution
Q (Robert Dickerson · U.S. Bancorp): He asked what will fix weak demand and whether distribution gains are through more TDPs or new channels.
A: Management said they are not relying on consumer income improving and will instead 'meet the consumer where they are' by offering value, convenience and targeted assortment. For distribution they track TDPs and ACV but also aim to expand items in growing channels like club, e-commerce and discount.
"We think about this environment is pretty much remaining status quo, if you will, especially as we look at perhaps 2027." — Brendan Foley (CEO·CHAIR)
resilience vs supply shocks
Q (Max Andrew Gumport · BNP Paribas): He asked if the company is better able to handle renewed freight and supply pressures versus the COVID years.
A: Management said they have focused on resiliency and standardizing and automating processes, which improves response to supply shocks. They also highlighted their long-running CCI program has been elevated and delivered meaningful gross margin gains in 2026, giving them more confidence going into 2027 than in 2019.
"I would add that our CCI program has really stepped up over the last couple of years, Max." — Marcos Gabriel (CFO)
McCormick de Mexico drivers
Q (Scott Marks · Jefferies): He asked what drove stronger-than-expected performance in McCormick de Mexico and the outlook into Q4 and next year.
A: Management pointed to strong execution and a strong mayonnaise category performance, plus growth in herbs and spices and share gains in those categories. They said Mexico is a growing market with upside in multiple categories and they remain positive on the long-term outlook.
"I think in our prepared remarks, I would go back to that and -- the performance of the mayonnaise category was really pretty strong overall." — Brendan Foley (CEO·CHAIR)