"Barclays trimmed its target ahead of McCormick's fiscal Q1 2026 earnings, arguing that updates around the potential acquisition of Unilever's food division and a quantification of potential costs stemming from the Iran war will take center stage."
"Revenue reached $1,873.9 million against an estimate of $1,788.6 million, a beat of 4.77%, with YoY growth of 16.72%. The Consumer segment drove much of that, posting $1,145.0 million in revenue, up 24.5% year over year."
"The headline growth, however, leans heavily on the McCormick de Mexico acquisition completed in January 2026, which contributed 12.4 percentage points to the YoY revenue increase."
"Operating cash flow also declined sharply, falling to $50.9 million from $115.5 million in the prior-year period."
McCormick & Co. has seen its stock price target cut by Barclays to $58, reflecting concerns over acquisition uncertainties and costs related to the Iran war. The company's recent fiscal Q1 2026 results exceeded expectations, with revenue of $1,873.9 million, driven largely by the Consumer segment. However, organic growth was modest at 1.2%, and operating cash flow declined significantly. The stock has dropped over 20% this year and nearly 35% over the past year, indicating ongoing challenges despite some positive financial indicators.
Read at 24/7 Wall St.
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