McCormick & Company, Incorporated MKC is likely to witness top-line growth when it reports third-quarter 2026 earnings on Oct. 1. The Zacks Consensus Estimate for revenues is pegged at around $2 billion, indicating 14.7% growth from the year-ago reported number.
The consensus mark for earnings has remained unchanged over the past 30 days at 75 cents a share, which, however, suggests a fall of 11.8% from the figure recorded in the year-ago period. MKC has a trailing four-quarter surprise of about 7%, on average.
McCormick & Company, Incorporated Price, Consensus and EPS Surprise
McCormick & Company, Incorporated price-consensus-eps-surprise-chart | McCormick & Company, Incorporated Quote
Factors Likely to Influence MKC’s Upcoming Results
McCormick’s third-quarter performance is likely to have benefited from improving trends in the Consumer segment. Management specifically expected sequential volume improvement in the quarter, supported by refined revenue growth management, expanded distribution, optimized price-pack architecture, innovation and increased brand marketing. Continued volume momentum in the EMEA and Asia-Pacific may also have supported Consumer performance, while initiatives aimed at improving value perception and shelf accessibility are likely to have helped address heightened price sensitivity.
Flavor Solutions is likely to have remained an important growth driver in the quarter. Management expected the segment’s second-quarter momentum to continue through the remainder of fiscal 2026, supported by a healthy Flavors customer pipeline, increasing reformulation activity and innovation tied to health and wellness trends. Growth across large CPG customers, emerging brands and private-label customers, along with targeted menu placements and innovation in Branded Foodservice, may have further supported sales and volumes.
Profitability is likely to have benefited from pricing actions, productivity savings under the CCI program and accretion from McCormick de Mexico. Management expected continued gross-margin expansion to support third-quarter adjusted operating income growth, while CCI savings were also expected to help fund growth investments.
However, persistent consumer price sensitivity and competitive pressure in U.S. Spices & Seasonings may have weighed on Consumer trends. Inflationary pressures, including costs related to the Middle East conflict, along with higher brand marketing, ERP-related technology investments and incentive compensation, are also expected to have pressured third-quarter expenses.
Earnings Whispers for MKC
Our proven model doesn’t conclusively predict an earnings beat for McCormick this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
McCormick currently carries a Zacks Rank #4 (Sell) and has an Earnings ESP of -1.97%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Philip Morris International Inc. PM currently has an Earnings ESP of +1.95% and a Zacks Rank of 2. The consensus estimate for the quarterly revenues is pinned at $11.4 billion, which suggests 5.2% growth from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Philip Morris’ upcoming quarter’s EPS is pegged at $2.29, which calls for a 2.2% increase from the year-ago period figure. PM delivered a trailing four-quarter earnings surprise of 6%, on average.
The Coca-Cola Company KO currently has an Earnings ESP of +0.57% and a Zacks Rank #2. The consensus estimate for quarterly revenues is pegged at $12.9 billion, which indicates an improvement of about 4% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Coca-Cola’s upcoming quarter’s EPS is pegged at 87 cents, which calls for 6.1% growth from the figure reported in the prior-year quarter. KO delivered a trailing four-quarter earnings surprise of 4.6%, on average.
Colgate-Palmolive Company CL currently has an Earnings ESP of +1.94% and a Zacks Rank of 3. The Zacks Consensus Estimate for its upcoming quarter’s revenues is pegged at $5.3 billion, indicating an approximately 4% rise from the figure reported in the prior-year quarter.
The consensus estimate for Colgate-Palmolive’s earnings is pegged at 92 cents per share, implying 1.1% growth from the year-ago quarter. CL delivered a trailing four-quarter earnings surprise of 3.2%, on average.
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McCormick & Company, Incorporated (MKC): Free Stock Analysis Report
CocaCola Company (The) (KO): Free Stock Analysis Report
Philip Morris International Inc. (PM): Free Stock Analysis Report
Colgate-Palmolive Company (CL): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).