It has been about a month since the last earnings report for International Flavors (IFF Quick QuoteIFF - Free Report) . Shares have added about 4.9% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is International Flavors due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.

International Flavors Earnings Beat Estimates in Q3, Sales Dip Y/Y

International Flavors reported adjusted earnings of $1.05 per share in the third quarter of 2025, beating the Zacks Consensus Estimate of $1.02 per share. The bottom line improved 1% from the year-ago quarter.

Including one-time items, the company reported earnings of 16 cents per share compared with the prior-year quarter’s 23 cents per share.

International Flavors’ net sales fell 7.9% year over year to $2.69 billion but surpassed the Zacks Consensus Estimate of $2.63 billion. On a comparable basis, currency-neutral sales were flat with the prior-year quarter due to mid-single-digit growth in Scent and a low-single-digit growth in Taste.

International Flavors’ Q3 Gross Profit Dip Y/Y

In the reported quarter, IFF’s cost of goods sold was down 8.6% year over year to $1.71 billion. The gross profit fell 6.6% year over year to $983 million. The gross margin was 36.5% compared with 36% in the year-ago quarter.

Research and development expenses increased 7% year over year to $174 million. The selling and administrative expenses fell 15% year over year to $421 million in the third quarter.

The adjusted operating EBITDA was $519 million, down 8.6% from the prior-year quarter’s $568 million. The adjusted operating EBITDA margin was 19.3% compared with the year-ago quarter’s 19.4%.

IFF’s Q3 Segmental Performances

Net sales in the Taste segment increased 2.6% year over year to $635 million in the September-end quarter. The adjusted operating EBITDA was $128 million, up 3.2% year over year.

Net sales in the Food Ingredients segment fell 1.5% year over year to $830 million in the September-end quarter. The adjusted operating EBITDA was $106 million, up 20.5% year over year.

Sales generated in the Health & Bioscience segment were $577 million compared with the year-earlier quarter’s $568 million. The adjusted operating EBITDA was $150 million in the quarter, up 0.7% year over year.

The Scent segment’s sales were $652 million, up 6.4% year over year. The adjusted operating EBITDA grew 7.1% year over year to $135 million.

International Flavors’ Q3 Cash Flow & Balance Sheet Updates

International Flavors had cash and cash equivalents of $621 million at the end of third-quarter 2025, up from $469 million at the end of 2024. Long-term debt was $4.74 billion at the third-quarter end, down from $7.56 billion as of Dec. 31, 2024.

International Flavors generated $532 million in operating activities in the first nine months of fiscal 2025 compared with $681 million in the prior-year period.

IFF Reaffirms 2025 Guidance

The company expects sales for fiscal 2025 between $10.6 billion and $10.9 billion. Adjusted EBITDA is expected between $2 billion and $2.15 billion.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a downward trend in estimates revision.

VGM Scores

Currently, International Flavors has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Following the exact same course, the stock was allocated a score of B on the value side, putting it in the second quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions looks promising. Notably, International Flavors has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

International Flavors is part of the Zacks Chemical - Specialty industry. Over the past month, Ecolab (ECL Quick QuoteECL - Free Report) , a stock from the same industry, has gained 2.1%. The company reported its results for the quarter ended September 2025 more than a month ago.

Ecolab reported revenues of $4.17 billion in the last reported quarter, representing a year-over-year change of +4.2%. EPS of $2.07 for the same period compares with $1.83 a year ago.

Ecolab is expected to post earnings of $2.06 per share for the current quarter, representing a year-over-year change of +13.8%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.4%.

Ecolab has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.