International Flavors & Fragrances grows sales 4% and raises its forecast floor
International Flavors & Fragrances earned $0.83 per share in the third quarter on an adjusted basis excluding amortization, above the $0.80 analysts expected. Sales rose 4% to $1.94 billion. All three divisions grew, and Scent and Taste led the way.
The results
Q3 2026
+3.2%
Adj. earnings
+0.8%
Revenue
-4.9%
The stock
Adjusted earnings per share
Expected $0.80
$0.83
Revenue
Expected $1.93B
$1.94B
What the company expects
The company now expects 2026 sales of $7.5 billion to $7.6 billion and adjusted operating EBITDA of $1.55 billion to $1.60 billion, raising the low end of both ranges. It expects a softer fourth quarter, mainly in Health & Biosciences, because of higher costs and reinvestment. It says the Food Ingredients sale is on track to close by the end of the second quarter of 2027.
Results for Q3 2026, released on November 3, after the close. Expected: average of analysts' forecasts. Earnings per share under GAAP accounting rules: -$0.22.
AI analysis
Nov 3
What drove the quarter
Health & Biosciences barely moved
Health & Biosciences grew comparable currency-neutral sales by 1%. The release says mid-single-digit growth in Food Biosciences and Grain Processing more than offset a decline in Health.
A loss under standard accounting
Under GAAP, the standard accounting rules, continuing operations lost $0.50 per share, against a $0.39 profit a year earlier. The release records a $236 million loss on assets held for sale, linked to the Botanicals & Food Enhancements business, and $34 million of regulatory costs tied to investigations of its fragrance businesses.
What it changes
Forecast floor raised
The company raised the low end of its 2026 ranges and now expects sales of $7.5 billion to $7.6 billion and adjusted operating EBITDA of $1.55 billion to $1.60 billion. Management credits its results so far this year.
A softer fourth quarter ahead
Management expects fourth-quarter profitability to be softer, especially in Health & Biosciences, because of higher costs and reinvestment in the business. That puts the division with the weakest third quarter at the center of the year-end slowdown.
What it does not say
The adjusted figure leaves costs out
The $0.83 per share excludes the asset-sale losses, regulatory costs and amortization of acquired intangibles. Once discontinued operations are included as well, the company posted a net loss of $0.22 per share for the quarter.
A high price and one session
TrueWallet's analysis notes the stock traded at 79.7 times its trailing earnings on October 29, 4.4 times the materials median, so the price leaves little room for a miss. The shares fell 4.9% on November 4, and one session is not a verdict on the company.
Analysis written by an AI from public data. It is not investment advice.