The J.M. Smucker Sets the Stage for Q2 Earnings: Things to Watch

The J. M. Smucker Company SJM is likely to register an increase in the top line when it reports second-quarter fiscal 2026 earnings on Nov. 25. The Zacks Consensus Estimate for revenues is pegged at $2.32 billion, implying a 2.1% increase from the prior-year quarter’s reported figure. 

The consensus mark for earnings has remained unchanged in the past 30 days at $2.11 per share, indicating a decline of 23.6% from the figure reported in the year-ago quarter. SJM delivered a trailing four-quarter earnings surprise of 5.1%, on average.

Things to Know About SJM’s Upcoming Results

The J.M. Smucker enters its second-quarter earnings with several encouraging signs for the top line, mainly due to steady demand across its major brands. Coffee remains the standout contributor, as consumers continue to go for Folgers and Café Bustelo even after notable price increases. Management is looking for substantial pricing benefits this year, weighted toward the middle of the fiscal period, which should give the second quarter another boost in overall sales momentum.

The J.M. Smucker is also benefiting from its International and Away-From-Home division. The segment has been gaining traction on stronger coffee pricing overseas and broader placement of Uncrustables, and frozen handheld offerings in foodservice and convenience formats. This channel diversification provides another layer of top-line support heading into the quarter.

However, the earnings picture looks troubled. Challenges persist in Sweet Baked Snacks and U.S. Pet Foods, where lower category demand, shifting retailer orders and ongoing SKU streamlining continue to pressure volumes and profitability. Higher costs tied to green-coffee tariffs remain another headwind. At the same time, increased investment in marketing and distribution to strengthen core brands has been weighing on margins.

With meaningful cost-savings not expected to show up until the back half of fiscal 2026, the second quarter is likely to reflect a familiar pattern — healthy revenue growth but softer bottom-line performance.

Earnings Whispers for SJM

Our proven model does not conclusively predict an earnings beat for The J. M. Smucker this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that’s not the case here. 

The J. M. Smucker has a Zacks Rank #3 and an Earnings ESP of -0.58% at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Some Stocks With the Favorable Combination

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

Lamb Weston Holdings, Inc. LW currently has an Earnings ESP of +1.88% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for second-quarter fiscal 2026 earnings per share (EPS) is pegged at 68 cents, which implies a 3% increase year over year. The consensus estimate for Lamb Weston’s quarterly revenues is pegged at $1.60 billion, which indicates a decline of 0.1% from the figure reported in the prior-year quarter. LW delivered a trailing four-quarter earnings surprise of 16%, on average.

Ollie's Bargain Outlet Holdings, Inc. OLLI currently has an Earnings ESP of +6.54% and a Zacks Rank of 2. The Zacks Consensus Estimate for third-quarter fiscal 2025 EPS is pegged at 71 cents, which implies a 22.4% increase year over year.

The consensus mark for Ollie's Bargain’s quarterly revenues is pegged at $615.7 million, which indicates growth of 19% from the figure reported in the prior-year quarter. OLLI delivered a trailing four-quarter earnings surprise of 4.2%, on average.

The Campbell's Company CPB currently has an Earnings ESP of +0.28% and a Zacks Rank of 3. The Zacks Consensus Estimate for first-quarter fiscal 2026 EPS is pegged at 74 cents, which calls for a 16.9% decrease year over year.

The consensus mark for The Campbell's quarterly revenues is pegged at $2.67 billion, which indicates a drop of 3.8% from the figure reported in the prior-year quarter. CPB delivered a trailing four-quarter earnings surprise of roughly 6.2%, on average.

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

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research