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
McCormick (MKC) delivered modest FY2025 growth with revenue rising 1.7% to $6.84B, while net income held nearly flat at $789.4M and gross margin compressed slightly to 37.9%, reflecting cost pressures offsetting volume gains.
Revenue
$6.84B
+1.73% YoY
EPS (Diluted)
$2.93
+0.34% YoY
Gross Margin
37.9%
-0.6 pts YoY
Operating Income
$1.07B
+0.99% YoY
Source: SEC XBRL
Mccormick & Co (MKC) reported FY2025 revenue of $6.84B, up 1.7% year over year. Operating margin was 15.7%, down 0.1 points from 15.8% a year earlier. Operating cash flow was $962.2M, up 4.4% year over year.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 0.80 | 0.70 | Beat +14.4% |
| Mar 2026 | 0.66 | 0.60 | Beat +9.9% |
| Dec 2025This filing | 0.86 | 0.88 | Miss -2.8% |
| Sep 2025 | 0.85 | 0.82 | Beat +3.2% |
Reported EPS of $0.86 versus the $0.88 analyst consensus — a -2.8% miss for Dec 2025.
Compiled by AI from this SEC filing
MKC grew total revenue by 1.7% year-over-year to $6.84B in FY2025, up from $6.72B in FY2024, suggesting a combination of modest pricing and volume contributions across its consumer and flavor solutions segments.
Source: 10-K Income Statement, Financial Data
Cost of revenue increased 2.8% to $4.25B, outpacing revenue growth of 1.7%, which caused gross margin to compress by approximately 64 basis points to 37.9% from 38.5% in the prior year, signaling input cost or mix headwinds.
Source: 10-K Income Statement, Financial Data
SG&A expenses declined 1.4% to $1.50B from $1.52B, demonstrating disciplined cost management that helped partially offset gross margin compression and supported operating income growth of 1.0% to $1.07B.
Source: 10-K Income Statement, Financial Data
Operating cash flow improved 4.4% to $962.2M in FY2025, up from $921.9M, reflecting solid earnings quality and working capital management, even as cash and equivalents fell sharply by 48.5% to $95.9M.
Source: 10-K Cash Flow Statement, Financial Data
Long-term debt declined 6.3% to $3.61B from $3.86B, and total liabilities fell 4.1% to $7.43B, while stockholders' equity grew 8.4% to $5.74B, indicating meaningful progress in deleveraging and balance sheet improvement.
Source: 10-K Balance Sheet, Financial Data
Compiled by AI from this SEC filing · 2 high, 3 medium, 0 low
MKC's current ratio stands at 0.70, meaning current liabilities of $3.06B significantly exceed current assets of $2.14B. This below-1.0 ratio, combined with a sharp 48.5% decline in cash to just $95.9M, raises near-term liquidity concerns if operating cash flows were to deteriorate unexpectedly.
Source: 10-K Balance Sheet, Financial Data
Cost of revenue grew 2.8% versus revenue growth of only 1.7%, compressing gross margin by ~64 basis points to 37.9%. Sustained commodity, packaging, or supply chain cost inflation could further erode profitability if pricing power is insufficient to offset these pressures.
Source: 10-K Income Statement, Financial Data
Despite progress in reducing long-term debt to $3.61B, MKC's debt-to-equity ratio remains elevated at 1.30x. High leverage limits financial flexibility and increases vulnerability to rising interest rates or any unexpected earnings shortfall.
Source: 10-K Balance Sheet, Financial Data
Basic EPS was flat at $2.94 year-over-year, and diluted EPS grew only marginally by $0.01 to $2.93. Share buybacks also declined 34.5% to $34.8M, suggesting limited capacity to meaningfully enhance per-share returns in the near term.
Source: 10-K Income Statement and Cash Flow Statement, Financial Data
Financing cash outflows surged 44.2% to -$840.9M in FY2025 from -$583.1M in FY2024, likely driven by debt repayment and dividends. This significant cash usage contributed to the steep decline in cash balances and could constrain future capital allocation flexibility.
Source: 10-K Cash Flow Statement, Financial Data
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 6.84 $B | 6.72 $B | +1.73% |
Cost of Revenue $B | 4.25 $B | 4.13 $B | +2.79% |
Gross Profit $B | 2.59 $B | 2.59 $B | +0.05% |
Operating Income $B | 1.07 $B | 1.06 $B | +0.99% |
Net Income $M | 789.40 $M | 788.50 $M | +0.11% |
EPS (Basic) $ | 2.94 $ | 2.94 $ | 0.00% |
EPS (Diluted) $ | 2.93 $ | 2.92 $ | +0.34% |
R&D Expense $M | 106.10 $M | 102.90 $M | +3.11% |
SG&A Expense $B | 1.50 $B | 1.52 $B | -1.37% |
Answers draw on this SEC filing and the data on this page
MKC reported strong revenue growth of 16.7% in Q2 FY2026, but net income declined by 14.2% due to increased SG&A expenses.
MKC reported Q1 FY2026 revenue of $1.87B (+16.7% YoY) driven by strong top-line growth, but net income surged 526% to $1.02B primarily due to a large non-operating gain, while operating cash flow declined sharply and SG&A costs rose faster than revenue.
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