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

McCormick & Company, Inc.’s MKC recent performance highlights continued volume momentum, led by the consumer segment. In the third quarter of fiscal 2025, organic net sales grew 2% year over year, driven by volumes. The company witnessed strength in the consumer segment, which grew 3% organically.

Across the Global Consumer segment, execution remains strong, with market share steady or improved in many core categories in key markets. In the United States, McCormick’s branded unit consumption continues to outpace the broader edible category, while in EMEA, both unit and dollar consumption surpassed the performance of branded and private-label FMCG foods.

The Spices and Seasonings segment within Global Consumer delivered broad-based volume growth across regions, with U.S. volumes outperforming private label for five consecutive quarters and continued share gains in Canada. France and Poland contributed meaningfully to EMEA performance. Strength in the grilling portfolio was supported by new Grill Mates packaging and increased Frank’s RedHot promotions and innovation.

In the Consumer segment, sustained investments in brand marketing, innovation, and revenue management have driven differentiated performance for six quarters. Healthy consumption trends, expanding distribution, and elevated holiday merchandising and marketing support expectations for continued fourth-quarter volume growth and a strong holiday season.

The company is maintaining its net sales outlook at flat to 2% growth. Organic net sales growth is still expected in the 1% to 3% range, with performance at least at the midpoint, driven by volume-led growth in the Consumer segment, while Flavor Solutions is expected to remain nearly flat for the full year.

With sustained volume-led growth, steady share gains, and strong brand execution across regions, McCormick enters 2026 with solid momentum. Continued innovation, marketing investment, and healthy consumption trends should support growth, even amid a cautious consumer environment.

The Zacks Rundown for MKC

MKC’s shares have lost 9.6% in the past six months compared with the industry’s decline of 10.9%. MKC carries a Zacks Rank #3 (Hold).

From a valuation standpoint, MKC trades at a forward price-to-earnings ratio of 21.96, higher than the industry’s average of 14.87.

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. 

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

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