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International Flavors (IFF) Down 11.3% Since Last Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for International Flavors (IFF - Free Report) . Shares have lost about 11.3% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is International Flavors due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
International Flavors reported adjusted earnings of $1.25 per share in first-quarter 2026, up 4.2% year over year. The result beat the Zacks Consensus Estimate of $1.08 by 15.7%.
Including one-time items, the company reported earnings of 66 cents per share against the prior-year quarter’s loss of $3.98.
International Flavors’ quarterly net sales were $2.741 billion, down 3.6% from the year-ago period but 3.4% above the $2.65 billion consensus mark. On a comparable currency-neutral basis, sales increased 3%, supported by volume gains across all four segments.
IFF's Q1 Margins Improved on Productivity Gains
Below the top line, IFF’s quarter reflected better operating execution despite the headline sales decline. In the reported quarter, IFF’s cost of goods sold was down 5% year over year to $1.7 billion. Gross profit dipped 1.6% to around $1 billion. The gross margin came in at 37.1% compared with 36.4% in the year-ago quarter.
Research and development expenses decreased 7.4% year over year to $427 million. Selling and administrative expenses inched up 1.2% to $166 million in the quarter. Adjusted operating EBITDA came in at $568 million, up 11.6% from the prior-year quarter’s $509 million. The adjusted operating EBITDA margin was 20.7% compared with the year-ago quarter’s 17.9%.
On a comparable currency-neutral basis, adjusted operating EBITDA improved 8% compared with the prior year, aided by volume growth and productivity gains.
International Flavors' Segments Show Broad Volume Growth
Net sales in the Taste segment increased 5.6% year over year to $656 million in the quarter. On a comparable basis, currency neutral sales rose 2% with broad-based growth in all regions. The segment’s adjusted operating EBITDA was $153 million, down 29% year over year.
Net sales in the Food Ingredients segment rose 7.7% year over year to $839 million in the March-ended quarter. On a comparable basis, currency neutral sales rose 3% attributed to volume growth in nearly all businesses. The adjusted operating EBITDA was $114 million, up 5.6% year over year.
Sales generated in the Health & Bioscience segment were $595 million compared with the year-earlier quarter’s $540 million. On a comparable basis, currency neutral sales were up 5% with growth in nearly all businesses, led by Animal Nutrition and Food Biosciences. The adjusted operating EBITDA was $153 million in the quarter, up 13.3% year over year.
The Scent segment’s sales were $651 million, up 6% year over year. On a comparable basis, currency neutral sales inched up 1% as growth in Consumer Fragrances and Fine Fragrances was partially offset by a decline in Fragrance Ingredients. The adjusted operating EBITDA increased 5% year over year to $148 million.
International Flavors' Cash Flow Rose, Leverage Steady
Cash generation improved meaningfully with International Flavors generating $257 million in cash from operating activities in the first quarter, higher than $1.27 million in the prior-year quarter. Free cash flow was at $92 million after $165 million of capital expenditures.
IFF had cash and cash equivalents of $562 million at the end of the first quarter of 2026, down from $590 million at the end of 2025. Long-term debt was $4.74 billion at the quarter-end compared with $4.74 billion at the end of 2025. Net debt to credit adjusted EBITDA was 2.5x.
International Flavors Maintains 2026 Guidance
Looking ahead, IFF reaffirmed its full-year 2026 guidance despite what management described as an unsettled operating environment. The company expects sales for fiscal 2026 between $10.5 billion and $10.8 billion. Adjusted EBITDA is expected between $2.05 billion and $2.15 billion.
International Flavors continues to expect comparable currency neutral sales growth to be between 1% to 4%, and comparable currency neutral adjusted operating EBITDA growth to be 3-8%.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in estimates review.
VGM Scores
Currently, International Flavors has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. However, the stock has a score of C on the value side, putting it in the middle 20% for value investors.
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 indicates a downward shift. 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, Quaker Chemical (KWR - Free Report) , a stock from the same industry, has gained 0.2%. The company reported its results for the quarter ended March 2026 more than a month ago.
Quaker Chemical reported revenues of $480.48 million in the last reported quarter, representing a year-over-year change of +8.5%. EPS of $1.63 for the same period compares with $1.58 a year ago.
For the current quarter, Quaker Chemical is expected to post earnings of $1.61 per share, indicating a change of -5.9% from the year-ago quarter. The Zacks Consensus Estimate has changed -5.1% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #4 (Sell) for Quaker Chemical. Also, the stock has a VGM Score of C.
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International Flavors (IFF) Down 11.3% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for International Flavors (IFF - Free Report) . Shares have lost about 11.3% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is International Flavors due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
IFF Q1 Earnings Beat Estimates on Volume Growth & Productivity Gains
International Flavors reported adjusted earnings of $1.25 per share in first-quarter 2026, up 4.2% year over year. The result beat the Zacks Consensus Estimate of $1.08 by 15.7%.
Including one-time items, the company reported earnings of 66 cents per share against the prior-year quarter’s loss of $3.98.
International Flavors’ quarterly net sales were $2.741 billion, down 3.6% from the year-ago period but 3.4% above the $2.65 billion consensus mark. On a comparable currency-neutral basis, sales increased 3%, supported by volume gains across all four segments.
IFF's Q1 Margins Improved on Productivity Gains
Below the top line, IFF’s quarter reflected better operating execution despite the headline sales decline. In the reported quarter, IFF’s cost of goods sold was down 5% year over year to $1.7 billion. Gross profit dipped 1.6% to around $1 billion. The gross margin came in at 37.1% compared with 36.4% in the year-ago quarter.
Research and development expenses decreased 7.4% year over year to $427 million. Selling and administrative expenses inched up 1.2% to $166 million in the quarter. Adjusted operating EBITDA came in at $568 million, up 11.6% from the prior-year quarter’s $509 million. The adjusted operating EBITDA margin was 20.7% compared with the year-ago quarter’s 17.9%.
On a comparable currency-neutral basis, adjusted operating EBITDA improved 8% compared with the prior year, aided by volume growth and productivity gains.
International Flavors' Segments Show Broad Volume Growth
Net sales in the Taste segment increased 5.6% year over year to $656 million in the quarter. On a comparable basis, currency neutral sales rose 2% with broad-based growth in all regions. The segment’s adjusted operating EBITDA was $153 million, down 29% year over year.
Net sales in the Food Ingredients segment rose 7.7% year over year to $839 million in the March-ended quarter. On a comparable basis, currency neutral sales rose 3% attributed to volume growth in nearly all businesses. The adjusted operating EBITDA was $114 million, up 5.6% year over year.
Sales generated in the Health & Bioscience segment were $595 million compared with the year-earlier quarter’s $540 million. On a comparable basis, currency neutral sales were up 5% with growth in nearly all businesses, led by Animal Nutrition and Food Biosciences. The adjusted operating EBITDA was $153 million in the quarter, up 13.3% year over year.
The Scent segment’s sales were $651 million, up 6% year over year. On a comparable basis, currency neutral sales inched up 1% as growth in Consumer Fragrances and Fine Fragrances was partially offset by a decline in Fragrance Ingredients. The adjusted operating EBITDA increased 5% year over year to $148 million.
International Flavors' Cash Flow Rose, Leverage Steady
Cash generation improved meaningfully with International Flavors generating $257 million in cash from operating activities in the first quarter, higher than $1.27 million in the prior-year quarter. Free cash flow was at $92 million after $165 million of capital expenditures.
IFF had cash and cash equivalents of $562 million at the end of the first quarter of 2026, down from $590 million at the end of 2025. Long-term debt was $4.74 billion at the quarter-end compared with $4.74 billion at the end of 2025. Net debt to credit adjusted EBITDA was 2.5x.
International Flavors Maintains 2026 Guidance
Looking ahead, IFF reaffirmed its full-year 2026 guidance despite what management described as an unsettled operating environment. The company expects sales for fiscal 2026 between $10.5 billion and $10.8 billion. Adjusted EBITDA is expected between $2.05 billion and $2.15 billion.
International Flavors continues to expect comparable currency neutral sales growth to be between 1% to 4%, and comparable currency neutral adjusted operating EBITDA growth to be 3-8%.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in estimates review.
VGM Scores
Currently, International Flavors has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. However, the stock has a score of C on the value side, putting it in the middle 20% for value investors.
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 indicates a downward shift. 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, Quaker Chemical (KWR - Free Report) , a stock from the same industry, has gained 0.2%. The company reported its results for the quarter ended March 2026 more than a month ago.
Quaker Chemical reported revenues of $480.48 million in the last reported quarter, representing a year-over-year change of +8.5%. EPS of $1.63 for the same period compares with $1.58 a year ago.
For the current quarter, Quaker Chemical is expected to post earnings of $1.61 per share, indicating a change of -5.9% from the year-ago quarter. The Zacks Consensus Estimate has changed -5.1% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #4 (Sell) for Quaker Chemical. Also, the stock has a VGM Score of C.