McCormick reports 17% first quarter sales growth from acquisition

McCormick & Company (NYSE: MKC) reported net sales of $1.87 billion for the first quarter ended February 28, 2026, representing a 16.7% increase compared to $1.61 billion in the prior year period, according to a press release statement.

The sales growth included a 12.4% contribution from the January 2026 acquisition of an additional 25% ownership interest in McCormick de Mexico, giving the company a controlling 75% stake. Organic sales growth was 1.2%, while favorable currency exchange rates contributed 3.1% to the increase.

Operating income was $228 million compared to $225 million in the year-ago period. Adjusted operating income, which excludes special charges, was $268 million versus $225 million in the first quarter of 2025.

Earnings per share reached $3.77 compared to $0.60 in the prior year quarter. The significant increase was primarily driven by a non-cash gain of $866.8 million related to the remeasurement of McCormick's previously held equity interest in McCormick de Mexico. Adjusted earnings per share, excluding this gain and special charges, was $0.66 versus $0.60 in the comparable period.

The Consumer segment recorded net sales of $1.15 billion, up 24.5% from the prior year, with McCormick de Mexico contributing 19.8% to this growth. The Flavor Solutions segment reported net sales of $729 million, a 6.2% increase, with the acquisition contributing 2.4%.

McCormick reaffirmed its fiscal 2026 outlook, projecting net sales growth of 13% to 17%, with the McCormick de Mexico acquisition expected to contribute 11% to 13%. The company forecasts adjusted operating income growth of 16% to 20% and adjusted earnings per share of $3.05 to $3.13.

The acquisition of McCormick de Mexico was completed on January 2, 2026, increasing McCormick's ownership from 50% to 75%. Prior to the acquisition, McCormick accounted for its ownership as an equity method investment.

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