Earnings summary

J M SMUCKER Co Q4 2026 results

Reported 2026-06-09View full transcript

Snapshot

J M SMUCKER Co reported $2.27B of revenue in Q4 2026, up 5.8% year over year, with diluted EPS of $3.64 and an operating margin of 19.6%.

Revenue
$2.27B
YoY growth
+5.8%
Diluted EPS
$3.64
Operating margin
19.6%
$2.27B
Revenue
+5.8%
YoY growth
$3.64
Diluted EPS
19.6%
Operating margin
01 Key takeaways

What management said

  • Tucker Marshall, Chief Financial Officer and Executive Vice President, Frozen Handheld and Spreads and Sweet Baked Snacks, will then provide a detailed analysis of the financial results in our fiscal year 2027 outlook.
  • During the fourth quarter, the company completed its annual evaluation of operating segments and, as a result, the away from home business met the criteria to be presented as a reportable segment.
  • The company has updated its presentation of segment results accordingly, and prior year amounts have been modified to reflect this change.
  • Eastern Time today for a live question and answer session with management to further discuss our fourth quarter results and next year's outlook for fiscal year 2027.
  • We are pleased with our fiscal year 2026 results, as we have exceeded the midpoint of our original guidance for the year while effectively navigating a dynamic external environment.
  • This is our seventh consecutive year of comparable top-line growth when excluding contract manufacturing sales related to divested pet food brands.
  • We exceeded our free cash flow expectations, generating $1.2 billion, which enabled us to pay down more debt than originally anticipated.
  • We will continue to prioritize disciplined capital deployment, and as we reduce debt, we will evaluate opportunities for share repurchases.
  • We are carrying meaningful momentum into fiscal year 2027 with strategic priorities that position the company to deliver strong near-term results while driving long-term growth.
  • Total company net sales increased 6%, driven by growth in the coffee, away from home, pet foods, and frozen handheld and spread segments.
  • We also delivered segment profit growth across all of our reportable segments, reflecting disciplined execution and cost management.
  • As a result of our net sales and profit growth, adjusted earnings per share increased 20% versus the prior year.
Read the full Q4 2026 transcript

What went well

  • Fourth quarter total company net sales increased 6%, driven by growth in the coffee, away from home, pet foods, and frozen handheld and spreads segments, with segment profit growth across all reportable segments.
  • Adjusted earnings per share rose 20% versus the prior year to $2.77, reflecting net sales and profit growth.
  • U.S. Retail Coffee net sales increased 12%, with favorable price elasticity trends relative to initial expectations and recovery of higher commodity costs through responsible pricing.
  • The Away From Home business delivered double-digit net sales growth (15%, or 14% excluding foreign currency) and was elevated to a reportable segment given its scale and durability.
  • Full year free cash flow reached $1.2 billion, exceeding expectations and up $340 million versus the prior year, enabling $720 million of debt paydown in fiscal 2026.
  • Uncrustables net sales accelerated to 8% growth, its strongest quarterly rate this fiscal year, and Hostess Donettes grew net sales 13% while Meow Mix grew 8%.

What went wrong

  • Spreads portfolio net sales declined in the quarter, reflecting a decision not to repeat certain promotional activity and broader category dynamics.
  • Sweet Baked Snacks segment net sales decreased 5% (down 4% excluding divested value brands), with volume mix down 12 percentage points driven by snack cakes and breakfast.
  • The Milk-Bone brand declined in the quarter, primarily driven by softness in biscuits, and dog snacks net sales declined 1%.
  • The company realized approximately $23 million in tariff expense in the fourth quarter, primarily impacting the U.S. Retail Coffee segment.
  • Coffee volume mix decreased net sales by 8 percentage points, reflecting declines for the Dunkin' and Folgers brands.

Guidance changes

MetricPeriodPreviousCurrentChange
Net salesFY2027Decrease 3%-4% vs prior year, driven by lower net price expectations and lower volume mixdecrease
Debt paydownFY2027$720 million paid in FY2026Approximately $500 million plannedlower
Leverage ratio (net debt / adjusted EBITDA)End of FY20273.8xAround 3ximproving
Dividend payout policyFY2027Return approximately 40%-45% of annual adjusted EPS to shareholdersmaintained

Performance breakdown

MetricYoY changeReason
U.S. Retail Coffee net sales+12%Net price realization added 21 points from higher pricing across the portfolio; volume mix subtracted 8 points from Dunkin' and Folgers declines, partly offset by Cafe Bustelo growth.
U.S. Retail Coffee segment profit+1%Higher net price realization and lower marketing spend, mostly offset by higher commodity costs and tariffs and unfavorable volume mix.
U.S. Retail Frozen, Handheld, and Spreads net sales+1%Net price realization added 2 points (Uncrustables pricing, lower Jif trade spend); volume mix subtracted 2 points from Jif and Smucker's fruit spreads declines, partly offset by Uncrustables growth.
U.S. Retail Frozen, Handheld, and Spreads segment profit+37%Lower marketing spend, higher net price realization, lapping prior-year equipment write-off charges, lower costs, and lower pre-production expenses for the new Uncrustables facility, partly offset by unfavorable volume mix.
U.S. Retail Pet Foods net sales+2%Net price realization added 3 points; volume mix subtracted 2 points from dog snacks decline and lapping divested-brand contract manufacturing, partly offset by cat food growth.
U.S. Retail Pet Food segment profit+18%Higher net price realization and lower marketing spend.
Sweet Baked Snacks net sales-5%Volume mix down 12 points from snack cakes and breakfast declines, partly offset by donut growth; net price realization added 8 points.
Sweet Baked Snacks segment profit+45%Higher net price realization and lower marketing spend, partly offset by unfavorable volume mix and higher costs.
Away From Home net sales+15%Net price realization added 8 points from higher coffee pricing; volume mix added 6 points from Uncrustables, fruit spreads, and coffee.
Away From Home segment profit+21%Higher net price realization and favorable volume mix, partly offset by higher costs.
Adjusted operating income+14%Increased gross profit and favorable SG&A from lower marketing and distribution costs, partly offset by higher general and administrative expenses.
Fourth quarter free cash flow+$185M ($484M vs $299M)Increase in cash provided by operating activities.

Earnings call themes & trends

TopicPrevious mentionCurrent periodTrend
Coffee pricing and green coffee commodity costsPrice increases implemented in May and August 2025Green coffee commodity moderating with positive early crop indications; company starting to lower prices through trade investments and planning a list price decrease in a sustained deflationary environmentrising
Uncrustables as a growth platformAccelerated to 8% growth, strongest quarterly rate this fiscal year; new manufacturing facility ramping with lower pre-production expensesrising
Sweet Baked Snacks stabilizationFaster-than-anticipated return to production after the February Emporia, Kansas fire; improving profitability; Hostess Donettes growth strongrising
Pet foods turnaroundCat food momentum (Meow Mix +8%, dry cat share gains) with dog snacks (Milk-Bone, Pup-Peroni) a key focus area undergoing stabilization actionssteady
Disciplined capital deployment and deleveraging$720M debt paid in FY2026; leverage 3.8xPlan to pay down ~$500M in FY2027 toward ~3x leverage, with share repurchases to be evaluated as debt reducessteady
TariffsApproximately $23 million realized in Q4, primarily impacting U.S. Retail Coffee; FY2027 guidance assumes no new tariff impacts or refundsrising

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