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.
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
| Metric | Period | Previous | Current | Change |
|---|---|---|---|---|
| Net sales | FY2027 | — | Decrease 3%-4% vs prior year, driven by lower net price expectations and lower volume mix | decrease |
| Debt paydown | FY2027 | $720 million paid in FY2026 | Approximately $500 million planned | lower |
| Leverage ratio (net debt / adjusted EBITDA) | End of FY2027 | 3.8x | Around 3x | improving |
| Dividend payout policy | FY2027 | — | Return approximately 40%-45% of annual adjusted EPS to shareholders | maintained |
Performance breakdown
| Metric | YoY change | Reason |
|---|---|---|
| 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
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Coffee pricing and green coffee commodity costs | Price increases implemented in May and August 2025 | Green 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 environment | rising |
| Uncrustables as a growth platform | — | Accelerated to 8% growth, strongest quarterly rate this fiscal year; new manufacturing facility ramping with lower pre-production expenses | rising |
| Sweet Baked Snacks stabilization | — | Faster-than-anticipated return to production after the February Emporia, Kansas fire; improving profitability; Hostess Donettes growth strong | rising |
| Pet foods turnaround | — | Cat food momentum (Meow Mix +8%, dry cat share gains) with dog snacks (Milk-Bone, Pup-Peroni) a key focus area undergoing stabilization actions | steady |
| Disciplined capital deployment and deleveraging | $720M debt paid in FY2026; leverage 3.8x | Plan to pay down ~$500M in FY2027 toward ~3x leverage, with share repurchases to be evaluated as debt reduces | steady |
| Tariffs | — | Approximately $23 million realized in Q4, primarily impacting U.S. Retail Coffee; FY2027 guidance assumes no new tariff impacts or refunds | rising |