McCormick & Company Net Income Surges 526% to $1.02B in Q1 FY2026
The global spice and flavoring company posted net income of $1.02 billion for the three months ending February 28, up from $162.3 million in the year-ago quarter. Revenue climbed 17% to $1.87 billion.
McCormick & Company (NYSE: MKC), a global manufacturer and distributor of spices, seasonings, and flavorings, reported net income of $1.02 billion for the three months ending February 28, 2026, a 526% surge from $162.3 million in the same period a year earlier. Diluted earnings per share jumped to $3.77 from $0.60. Read more earnings reports.
Revenue for the quarter rose 17% to $1.87 billion from $1.61 billion in the prior-year period. Cost of goods sold increased to $1.17 billion from $1.00 billion, lifting gross profit to $708.9 million compared to $604.0 million a year ago.
Operating income edged up 1% to $227.5 million from $225.2 million, while selling, general and administrative expenses climbed to $456.3 million from $378.8 million. Interest expense declined slightly to $47.3 million from $48.5 million.
Balance Sheet Expansion
Total assets swelled to $16.35 billion as of February 28, 2026, up from $13.20 billion at the prior fiscal year-end on November 30, 2025. Goodwill jumped to $6.32 billion from $5.30 billion, while intangible assets rose to $4.96 billion from $3.29 billion, indicating a significant acquisition during the quarter.
Cash and cash equivalents stood at $177.7 million, up from $95.9 million at November 30, 2025. Accounts receivable increased to $829.2 million from $628.9 million.
Total liabilities climbed to $8.79 billion from $7.43 billion, driven by current liabilities rising to $3.44 billion from $3.06 billion. Long-term debt reached $3.60 billion, up from $3.11 billion at the prior quarter-end.
Cash Flow and Equity
Cash from operations totaled $50.9 million for the quarter, down from $115.5 million in the year-ago period. Cash used in investing activities surged to $762.4 million from $37.1 million, while cash from financing activities swung to an inflow of $781.7 million from an outflow of $155.2 million.
Total stockholders' equity rose to $6.98 billion from $5.74 billion at November 30, 2025. Retained earnings increased to $4.82 billion from $3.82 billion. The company had 253.9 million shares outstanding as of the period end.
Key Financial Metrics
| Metric | Q1 FY2026 | Q1 FY2025 | Change |
|---|---|---|---|
| Total Revenue | $1.87 billion | $1.61 billion | +17% |
| Operating Income | $227.5 million | $225.2 million | +1% |
| Net Income | $1.02 billion | $162.3 million | +526% |
| Diluted EPS | $3.77 | $0.60 | +528% |
| Gross Profit | $708.9 million | $604.0 million | +17% |