MKC

Unilever stock has delivered a 33.1% gain over the past five years, yet the current share price around US$47.76 screens as only a mixed value story, with the Discounted Cash Flow (DCF) intrinsic value estimate suggesting the shares trade at roughly a 22.9% discount. Recent headlines around the planned sale of Colman's mustard as part of the wider merger of Unilever's food operations with McCormick also put the focus firmly on what investors are paying for the core business today. Over five years Unilever has returned 33.1%, which points to steady value creation even though the stock has been softer more recently. The planned merger of Unilever's broader food operations with McCormick may support long term cash flow potential, while execution risk around divestments such as Colman's and integration plans could weigh on how confidently investors price those cash flows. On Simply Wall St's broader checks Unilever earns a mixed value profile, with the company screening as attractively priced on some measures but not others, reflected in a value score of 4 out of 6. The issue now is whether Unilever's current discount to intrinsic value and its recent news flow leave enough upside to compensate investors for the business and integration risks ahead. Scan beyond Unilever and the Colman's sale by reviewing hand picked consumer staples and branded goods stocks in the 11 high quality undervalued stocks. The Discounted Cash Flow (DCF) model here uses projected free cash flows to estimate what Unilever is worth today. On the cash generation side, Unilever produced last twelve month free cash flow of about €7.0b, with the model assuming these cash flows continue to grow from this base rather than shrink. That feeds into a 2 Stage Free Cash Flow to Equity framework that tapers growth over time. On these inputs, the DCF points to an estimated intrinsic value of about £62 per share compared with a current share price near £48, which implies the stock screens roughly 22.9% undervalued. The planned sale of the Colman's mustard brand as part of the wider McCormick deal helps explain why investors may be applying a discount, since it adds uncertainty around how much of today's cash flow profile will remain after portfolio changes. Overall, the DCF suggests Unilever stock currently appears undervalued relative to the cash flows the business is projected to generate under the model’s assumptions. Our Discounted Cash Flow (DCF) analysis suggests Unilever is undervalued by 22.9%. Track this in your watchlist or portfolio, or discover 11 more high quality undervalued stocks. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Unilever. P/E is a useful cross check for Unilever because earnings remain a key focus for investors in large, mature consumer brands. On this measure, Unilever trades on a P/E of about 21.5x, compared with a broader Personal Products industry average near 18.7x. That means you are paying a higher multiple than the sector in general. However, Simply Wall St’s model, which looks at factors such as growth, margins, scale and risk, puts Unilever’s fair P/E closer to 23.3x. That is also very close to the peer group average of about 23.7x. With the current P/E sitting slightly below that fair ratio, the stock lines up broadly with what this earnings based framework would suggest for Unilever. Overall, Unilever appears roughly fairly valued on its P/E multiple compared with what the model implies and how similar companies are priced. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for Unilever sit alongside the valuation work above and explain which combinations of future growth, margins and earnings would need to hold for Unilever's stock to be worth meaningfully more or less than today’s price. They are hosted on Simply Wall St's Community page. Where a single ratio or model gives you one number to look at, these narratives unpack the future it depends on so you can watch how reality compares over time. Community views on Unilever are split, with some investors seeing meaningful upside while others think the stock already prices in a lot of good news. Bull case: 9% undervalued Read the full Bull Case to see why Unilever could be undervalued Bear case: 13% overvalued Read the full Bear Case to see why Unilever could be overvalued Do you think there's more to the story for Unilever? Head over to our Community to see what others are saying! For Unilever, the Discounted Cash Flow (DCF) work suggests a clear intrinsic value gap, while the market multiple view points to a stock that is priced roughly in line with peers. The mixed broader checks mean valuation is not a one way signal and investors still need to weigh business quality and execution closely. The crux is whether the planned portfolio reshaping, including the McCormick combination and related disposals, supports resilient cash flows and margins. The key question from here is whether that current discount reflects opportunity or is a fair penalty for integration and portfolio risk. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include ULVR.L. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

HUNT VALLEY, Md., Aug. 31, 2026 /PRNewswire/ -- McCormick & Company, Incorporated (NYSE: MKC), a global leader in flavor, is scheduled to conduct a conference call and webcast of its third quarter 2026 financial results on Thursday, October 1, 2026, at 8:00 a.m. Eastern Time. Brendan Foley, Chairman, President & CEO; Marcos Gabriel, Executive Vice President & CFO; and Faten Freiha, Vice President of Investor Relations will be hosting the call. A live audio webcast of the call along with the accompanying presentation materials will be available on the McCormick website ir.mccormick.com. If you are unable to attend the live webcast, the presentation will be archived on the same website. To listen to an audio replay, call 877-660-6853 in the United States or 201-612-7415 internationally. When prompted, enter the conference ID number 13762475. The replay will be available until 12:00 midnight Eastern Time on October 22, 2026. About McCormick McCormick & Company, Incorporated is a global leader in flavor. With approximately $7 billion in annual sales across 150 countries and territories, we manufacture, market, and distribute herbs, spices, seasonings, condiments and flavors to the entire food and beverage industry including retailers, food manufacturers and foodservice businesses. Our most popular brands with trademark registrations include McCormick, French's, Frank's RedHot, Stubb's, OLD BAY, Lawry's, Zatarain's, Ducros, Vahiné, Cholula, Schwartz, Kamis, DaQiao, Club House, Aeroplane, Gourmet Garden, FONA and Giotti. The breadth and reach of our portfolio uniquely position us to capitalize on the consumer demand for flavor in every sip and bite, through our products and our customers' products. We operate in two segments, Consumer and Flavor Solutions, which complement each other and reinforce our differentiation. The scale, insights, and technology that we leverage from both segments are meaningful in driving sustainable growth. Founded in 1889 and headquartered in Hunt Valley, Maryland USA, McCormick is committed to its Purpose – To Make Life More Flavorful – and driven by its Vision - To be the World's Most Trusted Source of Flavor. To learn more, visit: www.mccormickcorporation.com or follow McCormick & Company on Instagram and LinkedIn. For information contact: Investor Relations:Faten Freiha - [email protected] Global Communications:Jill Marvin – [email protected] View original content:https://www.prnewswire.com/news-releases/mccormick--company-to-report-2026-third-quarter-financial-results-on-october-1-2026-302864900.html

Interested in Unilever PLC? Here are five stocks we like better. Unilever raised its full-year outlook after second-quarter underlying sales growth accelerated to 5.8%, driven by 5.5% volume growth—the company’s strongest quarterly volume performance since 2010. Growth was led by power brands, Home Care and emerging markets: Home Care sales increased 9.1% in the second quarter, while India grew 10%. Foods underperformed, slowing to 0.2% growth amid weakness in North America and Europe. Despite roughly €300 million of first-half inflation, underlying operating margin improved to 20.3%. Unilever expects greater pricing contributions in the second half, continued modest margin improvement and €6 billion in share buybacks from 2026 to 2029. AirJoule Technologies: A Cool Shot at a Multibagger Unilever (NYSE:UL) reported accelerating volume-led growth in the second quarter, prompting the consumer products company to raise its full-year outlook as it expects pricing to become a larger contributor in the second half. Underlying sales rose 4.8% in the first half, including 4.2% from volume and 0.6% from price, Chief Financial Officer Srinivas Phatak said on the company’s results call. Second-quarter underlying sales growth accelerated to 5.8%, driven by 5.5% volume growth, which management described as Unilever’s strongest quarterly volume performance since 2010. → Volatility Is Back and These 3 Market Tollbooths Are Best Positioned to Profit McCormick & Company Falls to Value Levels Income Investors Love First-half turnover was €25.6 billion, up 0.5% from a year earlier. Acquisitions net of disposals contributed 0.7% to turnover growth, while currency movements reduced turnover by 4.9%. Underlying operating profit rose 0.9% to €5.2 billion, and underlying earnings per share increased 2.4% to €1.61. Free cash flow increased €500 million year over year to €1.5 billion. Unilever said its power brands, which account for 78% of turnover, grew 6% in the first half and 6.9% in the second quarter. Second-quarter power-brand volume growth was 6.8%, with 15 of the company’s 30 power brands posting double-digit growth. → This Tiny AI Supplier Could Be More Important Than the Chipmakers 5 Oversold Large-Cap Stocks That May Be Worth Buying Soon Beauty and Wellbeing recorded first-half underlying sales growth of 5.9%, accelerating to 8.1% in the second quarter. Hair care grew 9% during the half, supported by Dove, Sunsilk and K18. Vaseline posted double-digit growth, while the prestige beauty portfolio also accelerated, with Paula’s Choice, Hourglass and Tatcha each delivering double-digit growth in the second quarter. Personal Care grew 4.8% in the first half and 5.9% in the second quarter. Unilever said it regained market leadership in U.S. deodorants, supported by Dove, while Rexona returned to growth in Brazil after changes to format mix and shelf space. → 2 Stocks Built to Thrive If Inflation Refuses to Fade Home Care was the company’s fastest-growing business group, with underlying sales up 7.6% in the first half and 9.1% in the second quarter. Nearly all first-half growth came from volume. The segment benefited from strong fabric-cleaning growth in India, Brazil and Indonesia, as well as continued momentum in fabric enhancers led by Comfort. Foods grew 1.2% in the first half but slowed to 0.2% growth in the second quarter. Management cited weaker performance in North America and Europe, particularly in U.S. condiments, where it said increased competition in premium mayonnaise products using alternative oils, including avocado oil, hurt performance. The company said it is rolling out a Hellmann’s avocado line and adjusting pricing and distribution plans. Emerging markets continued to be a key growth driver. Asia Pacific Africa delivered 7.3% underlying sales growth in the first half, with 6.1% from volume, while Latin America grew 7.6%, including 5.7% volume growth. India led the second-quarter performance, with 10% underlying sales growth. Management said the country achieved record market shares in laundry and hair care. China grew by a mid-single-digit rate, aided by digital and e-commerce channels, while Indonesia grew 7% on broad-based gains across business groups. North America grew 2.7% in the first half, with 3.2% volume growth, and growth accelerated to 3.6% in the second quarter. The company cited gains in deodorants, skin cleansing, hair care and prestige beauty. Europe declined 0.9% in the first half amid a softer market environment, with the weakness concentrated in Foods. Management said it had not seen a material divergence between sell-in and sell-out trends in the U.S. While some retailer destocking occurred in Foods, it was not material at the company level. Underlying operating margin expanded 10 basis points to 20.3% in the first half despite a 70-basis-point year-over-year decline in gross margin. Phatak said inflation, including commodity, controlled-cost and other pressures, totaled about €300 million in the first half and is expected to total about €550 million in the second half. The company now expects full-year inflation of roughly €800 million to €900 million, centered around €850 million. Much of the inflation is concentrated in Home Care and emerging markets, according to Phatak. Unilever maintained Brand and Marketing Investment at 16.1% of turnover, with additional spending directed toward power brands, innovation and FIFA World Cup activations. The company said overheads improved by approximately 70 basis points after completing an €800 million productivity program ahead of schedule. Phatak said Unilever expects second-half gross margins to remain around first-half levels on an absolute basis as higher pricing reaches the income statement. The company expects some volume sensitivity as prices rise. Unilever raised its full-year outlook and now expects underlying sales growth within its multiyear range of 4% to 6%, with approximately 3% volume growth for the year. It expects second-half underlying sales growth of 4% to 5%, led by pricing, and continues to target a modest improvement in underlying operating margin versus 2025. The company expects currency headwinds to ease in the second half. Based on July spot rates, it projected a full-year currency impact on turnover of around 3%, compared with a 4.9% reduction during the first half. On capital allocation, Unilever increased its second-quarter dividend by 3% and completed a €1.5 billion share repurchase program in June. It expects operating performance and proceeds from the Foods transaction to support €6 billion in share buybacks between 2026 and 2029. Unilever also completed the acquisition of U.S. supplements brand Grüns in June. Management said the business complements its wellbeing portfolio and expands its exposure to premium, high-growth and digitally led consumer segments. The company said its planned combination of Foods with McCormick is progressing, with regulatory, tax, filing and integration work continuing. Unilever PLC is a global consumer goods company with roots dating back to the early 20th century, formed from the merger of the British firm Lever Brothers and the Dutch company Margarine Unie. The company develops, manufactures and markets a broad portfolio of branded products in personal care, home care and foods and refreshments. Unilever's corporate structure and listings reflect its long history in both the United Kingdom and the Netherlands, and it operates at scale across diverse consumer markets worldwide. Unilever's business is organized around major product categories—Beauty & Personal Care, Home Care and Foods & Refreshment—and includes numerous well-known consumer brands across those categories. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Unilever Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

In late June 2026, McCormick & Company reported second-quarter sales of US$1,936.6 million with lower quarterly earnings per share, completed a long-running US$800.94 million buyback program, affirmed its US$0.48 quarterly dividend, and was shifted from Russell 1000 Defensive and Value-Defensive indexes into the Russell 1000 Dynamic Index. This combination of changing index classifications and mixed earnings, higher sales but softer quarterly profitability, highlights how investors may be reassessing McCormick’s profile between stability and growth. Now we’ll explore how McCormick’s move into the Russell 1000 Dynamic Index reframes its investment narrative in light of these results. Uncover the next big thing with 20 elite penny stocks that balance risk and reward. To own McCormick, you have to believe in long term, global demand for flavor across both home cooking and foodservice, supported by strong brands and broad distribution. In the near term, the key catalyst is how effectively McCormick converts recent sales growth into sustainable profitability, while the biggest risk remains margin pressure from costs and customer mix. The latest quarter’s higher sales but lower EPS, and the shift into the Russell 1000 Dynamic Index, do not fundamentally change that picture. Among the recent announcements, the second quarter 2026 results are most relevant here. Sales rose to US$1,936.6 million from US$1,659.5 million a year earlier, but diluted EPS from continuing operations slipped to US$0.56 from US$0.65. Against a backdrop of evolving index classification, these numbers keep the focus squarely on execution in defending margins and stabilizing earnings, which ties directly into how investors think about McCormick’s risk and reward over the next few years. Yet behind the appeal of a global flavor leader, investors should pay close attention to how sustained cost pressures could... Read the full narrative on McCormick (it's free!) McCormick's narrative projects $8.7 billion revenue and $720.3 million earnings by 2029. This requires 7.1% yearly revenue growth and an earnings decrease of about $879.7 million from $1.6 billion today. Uncover how McCormick's forecasts yield a $61.23 fair value, a 18% upside to its current price. Some of the lowest analysts were already assuming earnings could fall to about US$842 million by 2029 and margins compress sharply, so this mix of higher sales and softer EPS may reinforce their view that integration risks and cost pressures could weigh on McCormick more than the consensus expects. Explore 5 other fair value estimates on McCormick - why the stock might be worth over 2x more than the current price! Don't just follow the ticker - dig into the data and build a conviction that's truly your own. A great starting point for your McCormick research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision. Our free McCormick research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate McCormick's overall financial health at a glance. Our top stock finds are flying under the radar-for now. Get in early: Capitalize on the AI infrastructure supercycle with our selection of the 52 best 'picks and shovels' of the AI gold rush converting record-breaking demand into massive cash flow. The future of work is here. Discover the 29 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation. We've uncovered the 8 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include MKC. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

BlackBerry Limited BB reported first-quarter fiscal 2027 non-GAAP earnings per share (EPS) of 4 cents. The figure beat the company’s estimate of 2-3 cents. In the year-ago quarter, it reported a non-GAAP EPS of 2 cents. The Zacks Consensus Estimate was pegged at 3 cents per share. BlackBerry generated $152.9 million in fiscal first-quarter revenue, representing 26% year-over-year growth. During the quarter, BlackBerry delivered strong execution across both QNX and Secure Communications, with each achieving Rule of 40 performance through a combination of solid growth and profitability. QNX continues to gain traction for software-defined vehicles, robotics, industrial automation and physical AI, while Secure Comm remains a dependable source of high-margin revenue backed by government and defense customers. After a strong start to fiscal 2027, BB raised its full-year QNX revenue guidance to $295–$312 million and adjusted EBITDA view to $74–$86 million. Secure Comm continues to be a stable and growing business. The company reaffirmed its full-year revenue guidance of $270–$280 million, representing 4–8% growth. For Licensing, it raised its guidance to approximately $29 million in revenue and $25 million in adjusted EBITDA. Fueled by improved outlook for QNX and Licensing, BlackBerry raised fiscal 2027 guidance to $594–$621 million in revenue and $119–$139 million in adjusted EBITDA. Earlier, it expected revenue to grow 6–11% to $584–$611 million, with adjusted EBITDA of $110–$130 million. The 90%flow-through of incremental revenue to adjusted EBITDA highlights the strong operating leverage of BlackBerry's business model. Non-GAAP EPS is now estimated at 16-20 cents, up from the prior expected 15–19 cents. Stronger cash conversion is expected to drive full-year operating cash flow to about $100 million, nearly double. Image Source: Zacks Investment Research Following stronger-than-expected momentum and bolstered guidance, BB’s shares rose 20% in trading and closed at $10.34 yesterday. The stock has gained 119% over the past year, outperforming the Zacks Internet-Software industry’s fall of 25%. Revenue from the QNX business rose 26% to $72.3 million, exceeding the upper end of guidance ($60-$64 million). QNX's strong results were driven by software-defined vehicles and centralized computing, record development license revenue (the highest in eight quarters) and growing opportunities in Physical AI, supported by a robust silicon ecosystem and the Alloy platform. Secure Communication revenues increased 24% to $73.6 million, nearly matching QNX's growth rate. The segment benefited from strong government demand fueled by digital sovereignty, cybersecurity modernization and secure communications initiatives. The solid performance was led by an expansion and multi-year extension with Shared Services Canada, including a larger deployment of Secusmart's encrypted communications solutions, resulting in the business's best performance in several years. While large government contracts cause quarterly fluctuations due to long sales cycles, the business continues to develop into a steady growth driver. During the quarter, BB also secured several renewals, expansions and new customer acquisitions across government, defense and regulated industries. BlackBerry Limited price-consensus-eps-surprise-chart | BlackBerry Limited Quote Licensing revenue reached $7 million, up from $4.7 million in the prior-year quarter and surpassed guidance of around $6 million, driven by stronger-than-expected revenue from existing agreements and several new one-time licensing deals. Adjusted gross margin was 78.6%, up from 74.6% in the year-ago period. QNX gross margin improved 5 percentage points (pp) year over year to 86%. Secure Comms adjusted gross margin expanded by roughly 2 pp year over year to 72%, benefiting from a more favorable software revenue mix. Adjusted operating expenses totaled $88 million, up from $79.9 million in the previous-year quarter. Adjusted EBITDA more than doubled year over year, reaching approximately $36 million and exceeding expectations ($14-$22 million). QNX’s adjusted EBITDA for the quarter came in much above the high end of guidance ($4-$8 million) at $19.3 million, up 52% year over year. Secure Communications’ adjusted EBITDA beat expectations ($14-$18 million) of $20.2 million, up 110% year over year. The licensing business generated $6.2 million in adjusted EBITDA for the quarter, up from $3.8 million in the previous year quarter. For the quarter that ended on May 31, 2026, BlackBerry generated $4.6 million in operating cash flow, marking its first cash-positive fiscal first quarter in nine years (excluding special items related to patent sales) against usage of $18 million a year ago. Free cash flow was $1.7 million at the end of the quarter against an outflow of $18.9 million in the previous quarter. The company ended the quarter with $422.9 million in cash and investments compared with $432.4 million as of Feb. 28, 2026. BlackBerry repurchased 2.6 million shares during the quarter for approximately $10 million. Since its launch in May last year, the company has bought back 18 million shares totaling $17 million. Last month, it renewed and expanded its share repurchase program, authorizing the buyback of approximately 27 million additional shares. The program remains a key tool in the company's disciplined, shareholder-focused capital allocation strategy. For the fiscal second quarter, BlackBerry expects QNX revenue of $70–$75 million and adjusted EBITDA of $16–$21 million. It expects Secure Communications revenue of $57–$63 million and adjusted EBITDA of $5–$10 million. Licensing & Other revenues are expected to be roughly $10 million. It has guided total revenue of $137–$148 million and adjusted EBITDA of $20–$30 million. Non-GAAP EPS is expected in the range of 3-4 cents. BlackBerry anticipates positive operating cash flow of breakeven to $10 million. At present, BlackBerry carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Guidewire Software, Inc. GWRE reported non-GAAP earnings per share of 82 cents for the third-quarter fiscal 2026 compared with 55 cents in the same period last year. Earnings surpassed the Zacks Consensus Estimate of 79 cents. The company reported revenues of $372.5 million, up 26.9% year over year. Revenues beat the Zacks Consensus Estimate by 4.6%. The figure also surpassed the company’s guided range of $352-$358 million. This uptick was driven by solid momentum in Subscription and support and Services segments. Micron Technology MU reported third-quarter fiscal 2026 non-GAAP earnings of $25.11 per share, beating the Zacks Consensus Estimate by 17.39%. The company reported earnings of $1.91 per share in the year-ago quarter. Revenues soared 345.7% year over year to $41.46 billion and surpassed the Zacks Consensus Estimate by 12.91%. Revenues jumped 73.7% sequentially. The upside was driven by robust AI-led memory demand, with data center revenues exceeding $25 billion, an annualized run rate of more than $100 billion. McCormick & Company, Incorporated MKC reported second-quarter fiscal 2026 results, wherein both top and bottom lines beat the Zacks Consensus Estimate and increased year over year. Adjusted earnings rose 15.9% to 80 cents per share from 69 cents in the year-ago quarter. The metric beats the Zacks Consensus Estimate of 69 cents per share. The increase was driven by elevated adjusted operating income and a reduced adjusted effective tax rate, partially offset by weaker unconsolidated income and increased interest expense. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Micron Technology, Inc. (MU) : Free Stock Analysis Report McCormick & Company, Incorporated (MKC) : Free Stock Analysis Report Guidewire Software, Inc. (GWRE) : Free Stock Analysis Report BlackBerry Limited (BB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

McCormick & Company, Incorporated MKC used its second-quarter call to make a clear case that Flavor Solutions is carrying the business, while management works to restore better volume trends in U.S. consumer spices. Management reaffirmed its 2026 outlook, but much of the investor focus shifted to how quickly the company can fix pressure in the Americas consumer business and sustain the stronger industrial and foodservice backdrop. Chairman, president and CEO Brendan Foley said the quarter’s most important feature was the acceleration in Flavor Solutions, where growth broadened across Flavors and Branded Foodservice customers. That strength more than offset softer consumer trends in the Americas. Flavor Solutions' organic sales rose 3% in the quarter, with gains split nearly evenly between price and volume. In the Americas, the segment posted 4% organic growth, helped by large CPG customers, private label, high-growth innovators and stronger branded foodservice demand. Foley also pointed to reformulation activity, beverage innovation and health-and-wellness projects as key demand drivers. In Q&A, he said those projects are commercializing faster than initially expected, which adds support to the second-half outlook for the segment. The softer spot remained Global Consumer, especially U.S. spices and seasonings. Foley said shifting demand patterns, wider price gaps and heavier competitive promotion hurt consumption in certain segments, even as the broader category still grew. Management’s response is familiar but more targeted this time. Foley said McCormick is refining revenue growth management, adjusting price-pack architecture, expanding distribution and increasing value-focused marketing to improve trends by the third quarter and return to volume growth in the fourth. That issue surfaced repeatedly in analyst questions. Barclays, BofA and TD Cowen all pressed management on whether the company can restore sustainable volume momentum. Foley’s answer was consistent: the playbook is similar to the one used two years ago, but execution is faster, more digital and aimed at narrower pockets of weakness. The second quarter still showed strong financial leverage. Adjusted EPS came in at $0.80, which beat the Zacks Consensus Estimate of $0.69 by 15.9%. Revenues of $1.94 billion topped the Zacks Consensus Estimate of $1.90 billion by 2%. Gross margin expanded 270 basis points, and adjusted operating income rose 30%. McCormick & Company, Incorporated price-consensus-eps-surprise-chart | McCormick & Company, Incorporated Quote CFO Marcos Gabriel said the largest moving pieces behind margin expansion were accretion from McCormick de Mexico, productivity savings, surgical pricing and a tariff refund. The refund lowered the cost of goods sold by $28 million in the quarter and added about $0.07 to adjusted EPS. Just as important, Gabriel said most of that tariff benefit is being used to absorb higher inflation tied to the Middle East conflict and other cost pressures. That framing mattered because management presented the quarter’s margin upside as a source of funding for reinvestment, not as a clean earnings windfall. Foley also spent time reinforcing confidence in the pending Unilever Foods combination. He said integration planning is advancing with a dedicated management office, 20 functional teams and more than 200 people working across both organizations. Management reiterated the deal’s financial targets, including a 21% operating margin at close, mid- to high-single-digit adjusted EPS accretion within the first 12 months after closing and mid- to high-teens accretion by year three. Analysts also tested the durability of that future margin profile. Foley and Gabriel argued the model does not assume unusually lean SG&A, and Gabriel said the path to 23% to 25% operating margins comes from layering synergies on top of the 21% starting point. The other area of scrutiny was the third quarter. Gabriel said adjusted operating income should grow in the high-single-digit to low-double-digit range, with continued gross margin expansion offset by heavier ERP spending, higher incentive compensation and a significant increase in brand marketing. JPMorgan and BNP Paribas pushed on whether this reflected a change in expectations. Gabriel said it was more about SG&A phasing than a change in the company’s internal view, though he also acknowledged inflation is tracking toward the high end of the company’s mid-single-digit cost outlook. Cash flow was one cleaner positive. First-half operating cash flow rose to $431 million from $161 million a year earlier, helped by profitability and working capital improvement, particularly in inventory days and payables. Leverage ended the quarter at about 2.9 times. The overall tone coming out of the call was constructive but not complacent. Management repeatedly pointed to the resilience of flavor categories, the breadth of the portfolio and the ability to redirect margin gains into brand support, innovation and distribution. At the same time, executives did not underplay the strain on the U.S. consumer. The company’s message was that Flavor Solutions is performing ahead of plan, while consumer remediation is now the central execution task for the back half of fiscal 2026. MKC currently carries a Zacks Rank #4 (Sell), along with a Value Score of C, Growth Score of F, Momentum Score of C and VGM Score of D. Under the Zacks framework, weaker ranks reflect less favorable earnings estimate revision trends, while Style Scores help gauge value, growth and momentum characteristics. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. That combination points to a more cautious near-term setup than the quarter’s headline beat alone would imply. The Zacks system places the greatest weight on estimate revisions, and the current rank can change as analysts update forecasts after the just-reported results. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report McCormick & Company, Incorporated (MKC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research