McCormick's Q3 Volumes Gain Traction: What to Expect in 2026?

Core Insights - McCormick & Company, Inc. (MKC) demonstrated continued volume momentum in Q3 of fiscal 2025, with organic net sales increasing by 2% year over year, primarily driven by the consumer segment which grew by 3% organically [1][10] Group 1: Consumer Segment Performance - The Global Consumer segment showed strong execution, maintaining or improving market share in key categories across various markets [2] - In the U.S., branded unit consumption by McCormick outpaced the broader edible category, while in EMEA, both unit and dollar consumption exceeded the performance of branded and private-label FMCG foods [2] - The Spices and Seasonings segment achieved broad-based volume growth globally, with U.S. volumes outperforming private label for five consecutive quarters and notable contributions from France and Poland in EMEA [3] Group 2: Marketing and Innovation - Sustained investments in brand marketing, innovation, and revenue management have led to differentiated performance over six quarters, with expectations for continued volume growth in Q4 supported by healthy consumption trends and elevated holiday marketing [4] - The company is maintaining its net sales outlook at flat to 2% growth, with organic net sales growth expected in the range of 1% to 3%, driven by volume-led growth in the Consumer segment [5] Group 3: Future Outlook - McCormick enters 2026 with solid momentum, supported by sustained volume-led growth, steady share gains, and strong brand execution across regions [6] - Continued innovation and marketing investment, along with healthy consumption trends, are anticipated to support growth despite a cautious consumer environment [6] Group 4: Earnings Estimates - The Zacks Consensus Estimate for MKC's fiscal 2025 and 2026 earnings implies a year-over-year rise of 2.4% and 6.5%, respectively [16]