International Flavors & Fragrances Inc. IFF reported second-quarter 2026 adjusted earnings of 82 cents per share, missing the Zacks Consensus Estimate of $1.14. The company’s second-quarter 2025 adjusted earnings came in at 77 cents, excluding the results from discontinued operations.
Including one-time items, the company reported earnings of 20 cents per share compared with $2.33 in the prior-year quarter.
In late May, International Flavors announced that it inked a deal with CVC Capital Partners to sell its Food Ingredients business. The deal is in sync with International Flavors’ portfolio transformation strategy, which is expected to solidify its focus on its innovation-driven businesses. Starting second-quarter 2026, the Food Ingredients disposal group is reported as discontinued operations.
International Flavors & Fragrances Inc. Price, Consensus and EPS Surprise
International Flavors & Fragrances Inc. price-consensus-eps-surprise-chart | International Flavors & Fragrances Inc. Quote
Net sales rose 1.8% year over year to $1.95 billion but missed the consensus estimate of $2.68 billion. Comparable currency-neutral sales advanced 6%, supported by broad-based growth across Taste, Health & Biosciences, and Scent.
International Flavors’ Q2 Gross Margin Improves Y/Y
In the reported quarter, IFF’s cost of goods sold increased 0.5% year over year to $1.10 billion. Gross profit rose 3.5% to $853 million. The gross margin came in at 43.7% compared with 42.9% in the year-ago quarter.
Research and development expenses remained flat year over year at $170 million. Selling and administrative expenses increased 6.8% to $437 million in the second quarter. Adjusted operating EBITDA came in at $408 million, up 2.3% from the prior-year quarter’s $399 million. The adjusted operating EBITDA margin was 20.9% compared with 20.8% in the year-ago quarter.
IFF’s Q2 Segmental Performances
Net sales in the Taste segment increased 5.2% year over year to $688 million in the June-end quarter. The figure surpassed our estimate of $647 million. Adjusted operating EBITDA was $124 million, up 6% year over year from $117 million, driven by volume growth and favorable net pricing. Our estimate for the segment’s adjusted EBITDA was $127 million. The segment’s adjusted operating EBITDA margin was 18% compared with 17.9% in the prior-year quarter.
Sales generated in the Health & Biosciences segment were $601 million, growing 7.5% from the year-earlier quarter’s $559 million. The figure matched our estimate. Growth was led by Grain Processing, Food Biosciences and Animal Nutrition.
Adjusted operating EBITDA was $150 million in the quarter, up 7.9% year over year from $139 million. Our estimate for the segment’s adjusted EBITDA was $154 million. The segment’s adjusted operating EBITDA margin was 25% compared with 24.9% a year ago.
The Scent segment’s sales were $665 million, up 10.3% year over year from $603 million. Our estimate was $624 million. The upside was driven by double-digit growth in Fragrance Ingredients and high-single-digit growth in Consumer Fragrance. Fine Fragrance posted low-single-digit growth, with results affected by the Middle East conflict.
Adjusted operating EBITDA increased 10.7% to $134 million from $121 million in the prior-year quarter. Our model had projected EBITDA of $131 million. The adjusted operating EBITDA margin was 20.2% compared with 20.1% in the year-ago quarter.
International Flavors’ Q2 Cash Flow & Balance Sheet Updates
IFF had cash and cash equivalents of $569 million at the end of the second quarter of 2026, down from $590 million at the end of 2025. Long-term debt was $4.74 billion at June 30, 2026, largely unchanged from the end of 2025. Net debt to credit-adjusted EBITDA was 2.5X.
International Flavors generated $679 million in cash from operating activities in the first six months of 2026, up from $368 million in the prior-year period.
IFF's 2026 Guidance
For 2026, International Flavors expects sales from continuing operations of $7.4 billion to $7.6 billion. Adjusted operating EBITDA is projected between $1.53 billion and $1.60 billion. The outlook excludes $3.2 billion in sales and $520 million in adjusted operating EBITDA related to discontinued operations.
The company expects comparable currency-neutral sales growth of 2-4% and comparable currency-neutral adjusted operating EBITDA growth of 4-8%. Foreign exchange is projected to benefit sales growth by 1% and adjusted operating EBITDA growth by 2%.
IFF also authorized an enhanced $2.5-billion share repurchase program, including a planned $500-million accelerated repurchase in the second half of 2026. The remaining $2 billion is expected to be executed after the Food Ingredients divestiture closes, with completion targeted by the end of 2027.
International Flavors’ Zacks Rank
IFF currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
IFF Stock’s Price Performance
In the past year, the company’s shares have gained 17.3% compared with the industry’s growth of 3.7%.
Performance of Other Chemical - Specialty Stocks in Q2
Linde plc LIN reported second-quarter 2026 adjusted earnings of $4.50 per share, up 10% from $4.09 per share a year ago. The bottom line topped the Zacks Consensus Estimate of $4.49 per share by 0.22%.
Linde’s sales increased 9% to $9.29 billion from $8.49 billion in the prior-year quarter, surpassing the Zacks Consensus Estimate of $8.96 billion by 3.68%.
PPG Industries, Inc. PPG reported adjusted earnings of $2.23 per share in the second quarter of 2026, up 0.5% year over year and missed the Zacks Consensus Estimate of $2.26.
PPG Industries’ sales rose 7.2% year over year to $4.5 billion and topped the consensus mark of $4.36 billion by 3.1%. Organic sales increased 4%, aided equally by higher volumes and selling prices.
Ecolab Inc. ECL reported second-quarter 2026 adjusted earnings of $2.09 per share, up 10.6% year over year. The figure surpassed the Zacks Consensus Estimate by 0.4%.
Ecolab sales rose 9.7% year over year to $4.42 billion, surpassing the consensus estimate by 0.5%. Organic sales increased 5%, aided by stronger pricing, volume growth and solid demand across Ecolab’s core businesses and growth engines.
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International Flavors & Fragrances Inc. (IFF): Free Stock Analysis Report
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