Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
IFF posted broad-based, volume-driven revenue growth across all three segments in Q2 FY2026, with comparable currency neutral sales rising 6% as each segment expanded. Management attributed the improvement to higher volumes, productivity gains, and tariff refunds. While operating income rose 11%, net income plunged due to the absence of a $488 million gain on debt extinguishment recognized in the prior-year period. The company also announced a $2.5 billion enhanced share repurchase authorization and plans to divest its Food Ingredients business. Gross margin expanded 70 basis points to 43.7%, reflecting operational leverage.
Revenue
$1.95B
+1.82% YoY
EPS (Diluted)
$0.20
-91.42% YoY
Gross Margin
43.7%
+0.7 pts YoY
Operating Income
$158M
+11.27% YoY
Source: SEC XBRL
IFF reported Q2 FY2026 revenue of $1.95B, up 1.8% year over year. Operating margin was 8.1%, up 0.7 points from 7.4% a year earlier. IFF's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Mar 2026 | 1.25 | 1.08 | Beat +15.3% |
| Dec 2025 | 0.80 | 0.83 | Miss -4.2% |
| Sep 2025 | 1.05 | 1.02 | Beat +2.6% |
| Jun 2025 | 1.15 | 1.13 | Beat +1.6% |
3 reported segments · SEC XBRL
Segment revenue totals $1.95B, which is the $1.95B of consolidated revenue on the income statement.
Compiled by AI from 10-Q Item 2 of this filing
On a comparable currency neutral basis, which excludes divestiture impacts and currency fluctuations, sales increased 6% in Q2 FY2026, driven by volume increases across all segments.
Source: 10-Q Item 2 MD&A
Gross profit increased 4% to $853 million, driven by volume increases, productivity gains, and the benefit of tariff refunds received during the quarter, partially offset by portfolio mix changes.
Source: 10-Q Item 2 MD&A
Scent segment sales rose 10% on a reported basis, or 8% comparable currency neutral, driven by strong volume growth in Fragrance Compounds, partially offset by declines in Fragrance Ingredients.
Source: 10-Q Item 2 MD&A
Net income attributable to IFF shareholders decreased 92% to $50 million, primarily due to the absence of a $488 million gain on debt extinguishment recognized in Q2 2025 and a $27 million loss on assets held for sale in the current quarter.
Source: 10-Q Item 2 MD&A
On August 4, 2026, the Board authorized an enhanced share repurchase program totaling $2.5 billion, including a $500 million accelerated share repurchase expected in H2 2026, with the remainder planned after the Food Ingredients divestiture.
Source: 10-Q Item 2 MD&A
Compiled by AI from this SEC filing · 2 high, 3 medium, 0 low
IFF maintains significant indebtedness, with long-term debt of $4.7 billion and a net debt to credit adjusted EBITDA ratio of 2.51x as of June 30, 2026. This leverage could limit financial flexibility and increase vulnerability to economic downturns.
Source: 10-Q Financial Statements (XBRL)
The company has relied on proceeds from business disposals (e.g., Pharma Solutions) to reduce debt and fund shareholder returns. The planned divestiture of the Food Ingredients business introduces execution risk and uncertainty regarding future cash flows.
Source: 10-Q Financial Statements (XBRL)
A significant portion of IFF’s sales are generated outside the U.S., exposing results to currency fluctuations. In Q2 FY2026, exchange rate variations had a favorable impact of 3% on sales, but adverse movements could pressure future earnings.
Source: 10-Q Financial Statements (XBRL)
The company incurred $71 million in regulatory costs in Q2 FY2026, reflecting increased expenses related to compliance. These costs could continue to weigh on profitability and may escalate with changing regulations.
Source: 10-Q Financial Statements (XBRL)
IFF operates in highly competitive flavor, fragrance, and biosciences markets. Intense competition could lead to pricing pressures, loss of market share, or the need for increased R&D and marketing spend, impacting margins.
Source: 10-Q Financial Statements (XBRL)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 1.95 $B | 1.92 $B | +1.82% |
Cost of Revenue $B | 1.10 $B | 1.10 $B | +0.55% |
Gross Profit $M | 853.00 $M | 824.00 $M | +3.52% |
Operating Income $M | 158.00 $M | 142.00 $M | +11.27% |
Net Income $M | 50.00 $M | 599.00 $M | -91.65% |
EPS (Basic) $ | 0.20 $ | 2.34 $ | -91.45% |
EPS (Diluted) $ | 0.20 $ | 2.33 $ | -91.42% |
R&D Expense $M | 170.00 $M | 170.00 $M | 0.00% |
SG&A Expense $M | 437.00 $M | 409.00 $M | +6.85% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
IFF returned to profitability in Q1 FY2026 with net income of $169M versus a loss of $1.02B a year ago, driven by a dramatic swing in operating income to $273M, even as revenue declined 3.6% to $2.74B.
IFF reported a challenging FY2025 with revenue declining 5.2% to $10.89B and a swing to an operating loss of -$382M, though the company significantly reduced long-term debt by 36.6% and maintained a positive gross margin of 36.2%.
Other companies in Specialty Chemicals